Location and agglomeration factors predicting retailers’ preference for Indian malls

Abstract

Retail research has emphasized the importance of location in attracting mall traffic. This study focused on Indian mall retailers’ experiences on agglomeration and location strategies employed by malls and their impact on retailers’ decision to take space in the mall. The purpose of the study was to identify mall factors that play a critical role in making the mall an attractive site for renting space by retailers. Retailers seek to set up stores in areas that promise traffic and sales. Thus, it becomes important to understand the retailers’ perspective in deciding to rent space in a mall. Qualitative study was conducted to understand the retailers’ perceptions. Forty in-depth retailer interviews across Indian malls were conducted to understand retailer views on mall location factors. The findings add to the existing literature on retail location and posit that mall agglomeration and locational issues were categorized under factors like the presence of branded stores, catchment area, transport networks, and accessibility. Infrastructural, economic, and technological developments varied across malls located in different parts of the country. Retail location theories need to incorporate the infrastructure issues and attractiveness of the catchment area in explaining mall location strategies in India. Differences in the availability of facilities, services, and retail formats varied across small and big cities and influenced mall traffic.

This is a preview of subscription content, log in to check access.

References

  1. Abratt, R., J.L. Fourie, and L.F. Pitt. 1985. Tenant mix: The key to a successful shopping centre. Quarterly Review of Marketing 10 (3): 19–26.

    Google Scholar 

  2. Batty, M. 1978. Reilly's challenge: New laws of retail gravitation which define systems of central places. Environment and Planning A 10 (2): 185–219.

    Article  Google Scholar 

  3. Brown, S. 1984. Retail location and retail change in Belfast city centre (Doctoral dissertation, Queen's University).

  4. Brown, S. 1991. Variations on a marketing enigma: the wheel of retailing theory. Journal of Marketing Management 7 (2): 131–155.

    Article  Google Scholar 

  5. Brown, S. 1992. Tenant mix, tenant placement and shopper behaviour in a planned shopping centre. Service Industries Journal 12 (3): 384–403.

    Article  Google Scholar 

  6. Brown, S. 1993a. Micro-scale retail location: Cinderella or ugly sister? International Journal of Retail & Distribution Management 21 (7): 10–19.

    Article  Google Scholar 

  7. Brown, S. 1993b. Retail location theory: Evolution and evaluation. International Review of Retail, Distribution and Consumer Research 3 (2): 185–229.

    Google Scholar 

  8. Chebat, J., R. Michon, N. Haj-Salem, and S. Oliveira. 2014. The effects of mall renovation on shopping values, satisfaction and spending behaviour. Journal of Retailing and Consumer Services 21 (4): 610–618.

    Article  Google Scholar 

  9. Christaller, W. 1966. Central places in southern Germany. Englewood Cliffs, NJ: Prentice-Hall.

    Google Scholar 

  10. Clarke, G. 1998. Changing methods of location planning for retail companies. GeoJournal 45 (4): 289.

    Article  Google Scholar 

  11. Corbin, J.M., and A. Strauss. 1990. Grounded theory research: Procedures, canons, and evaluative criteria. Qualitative Sociology 13 (1): 3–21.

    Article  Google Scholar 

  12. Crouch, M., and H. McKenzie. 2006. The logic of small samples in interview-based qualitative research. Social Science Information 45 (4): 483–499.

    Article  Google Scholar 

  13. Dale, B., and P. Sjøholt. 2007. The changing structure of the central place system in Trøndelag, Norway, over the past 40 years–viewed in the light of old and recent theories and trends. Geografiska Annaler: Series B, Human Geography 89 (s1): 13–30.

    Article  Google Scholar 

  14. Dholakia, R.R., N. Dholakia, and A. Chattopadhyay. 2018. Indigenous marketing practices and theories in emerging economies: Consumer behavior and retail transformations in India. Journal of Business Research 86: 406–415.

    Article  Google Scholar 

  15. Dunham-Jones, E., and J. Williamson. 2017. Dead and dying shopping malls, re-inhabited. Architectural Design 87 (5): 84–91.

    Article  Google Scholar 

  16. Eaton, B.C., and R.G. Lipsey. 1982. An economic theory of central places. The Economic Journal 92 (365): 56–72.

    Article  Google Scholar 

  17. FICCI. 2005. Indian retail on fast track: time for bridging capability gaps. https://www.investingintamilnadu.com/india/doc/FICCI_Reporton_IndianRetailMarket.pdf

  18. FICCI. 2012. Driving Indian Consumption through integrated multichannel retailing. https://ficci.in/events/20995/ISP/Driving-Indian-Consumption.pdf.

  19. Finn, A., and J.J. Louviere. 1996. Shopping center image, consideration, and choice: Anchor store contribution. Journal of Business Research 35 (3): 241–251.

    Article  Google Scholar 

  20. Fox, E.J., S. Postrel, and A. McLaughlin. 2007. The impact of retail location on retailer revenues: An Empirical investigation. Unpublished manuscript, Edwin L. Cox School of Business, Southern Methodist University, Dallas, TX.

  21. Geuens, M., M. Brengman, and R. S’Jegers. 2003. Food retailing, now and in the future. A consumer perspective. Journal of Retailing and Consumer Services 10 (4): 241–251.

    Article  Google Scholar 

  22. Ghosh, A., and C.S. Craig. 1983. Formulating retail location strategy in a changing environment. The Journal of Marketing 47: 56–68.

    Article  Google Scholar 

  23. Ghosh, A., and S. McLafferty. 1984. A model of consumer propensity for multipurpose shopping. Geographical Analysis 16 (3): 244–249.

    Article  Google Scholar 

  24. Goldman, A. 2001. The transfer of retail formats into developing economies: The example of China. Journal of Retailing 77 (2): 221–242.

    Article  Google Scholar 

  25. Guest, G., A. Bunce, and L. Johnson. 2006. How many interviews are enough? An experiment with data saturation and variability. Field Methods 18 (1): 59–82.

    Article  Google Scholar 

  26. Hindustan Times. 2017. 34 new shopping malls to come up by 2020 in 8 cities: Cushman & Wakefield. https://www.hindustantimes.com/business-news/34-new-shopping-malls-to-come-up-by-2020-in-8-cities-cushman-wakefield/story-A4DgXBlw1HdXwJAw8rPMEM.html. Accessed 14 May 2018.

  27. Howard, E. 1997. The management of shopping centres: Conflict or collaboration? The International Review of Retail, Distribution and Consumer Research 7 (3): 263–285.

    Article  Google Scholar 

  28. Hu, H., and C.R. Jasper. 2007. A qualitative study of mall shopping behaviors of mature consumers. Journal of Shopping Center Research 14 (1): 17–38.

    Google Scholar 

  29. IBEF. 2018. Retail. www.ibef.org. Accessed 19 Sept 2019.

  30. Ibrahim, M.F., and T.W.R. Galven. 2007. New age retail tenants: A new phenomenon. Journal of Retail & Leisure Property 6 (3): 239–262.

    Article  Google Scholar 

  31. Khare, A. 2011. Mall shopping behaviour of Indian small town consumers. Journal of Retailing and Consumer Services 18 (1): 110–118.

    Article  Google Scholar 

  32. Khare, A. 2012. Influence of culture on Indian consumers’ preference to shop at small retail stores. Journal of Global Marketing 25 (2): 100–111.

    Article  Google Scholar 

  33. Khare, A., and S. Rakesh. 2010. Retailers in malls: Retailers’ preferences for store space in Indian malls. Journal of Retail & Leisure Property 9 (2): 125–135.

    Article  Google Scholar 

  34. Kirkup, Malcolm H., and Rafiq Mohammed. 1994. Managing tenant mix in new shopping centers. International Journal of Retail and Distribution Management 22 (6): 29–37.

    Article  Google Scholar 

  35. Knight Frank. 2016. Think India. Think Retail. 2016. https://www.rai.net.in/images/reports-2016/Kight-Frank-think-india-think-retail-2016-3500.pdf

  36. Knoben, J., and L.A. Oerlemans. 2006. Proximity and inter-organizational collaboration: A literature review. International Journal of Management Reviews 8 (2): 71–89.

    Article  Google Scholar 

  37. Konishi, H., and M.T. Sandfort. 2003. Anchor stores. Journal of Urban Economics 53: 413–435.

    Article  Google Scholar 

  38. Kuruvilla, S.J., and J. Ganguli. 2008. Mall development and operations: An Indian perspective. Journal of Retail & Leisure Property 7 (3): 204–215.

    Article  Google Scholar 

  39. Langston, P., G.P. Clarke, and D.B. Clarke. 1998. Retail saturation: The debate in the mid-1990s. Environment and Planning A 30 (1): 49–66.

    Article  Google Scholar 

  40. Lee, Y.A. 2014. Insight for writing a qualitative research paper. Family and Consumer Sciences Research Journal 43 (1): 94–97.

    Article  Google Scholar 

  41. Levy, M., B.A. Weitz, and D. Grewal. 2012. Retailing management, vol. 6. New York: McGraw-Hill/Irwin.

    Google Scholar 

  42. Mason, M. 2010. Sample size and saturation in PhD studies using qualitative interviews. In Forum qualitative Sozialforschung/Forum: qualitative social research, vol. 11(3).

  43. McLafferty, S.L., and A. Ghosh. 1986. Multipurpose shopping and the location of retail firms. Geographical Analysis 18 (3): 215–226.

    Article  Google Scholar 

  44. Mendes, A.B., and I.H. Themido. 2004. Multi-outlet retail site location assessment. International Transactions in Operational Research 11 (1): 1–18.

    Article  Google Scholar 

  45. Miller, C.E., J. Reardon, and D.E. McCorkle. 1999. The effects of competition on retail structure: An examination of intratype, intertype, and intercategory competition. The Journal of Marketing 63: 107–120.

    Article  Google Scholar 

  46. Ministry of Finance. 2017. Implementation of recommendations of seventh central pay commission relating to rant of House Rent Allowance (HRA) to Central government employees. New Delhi: Department of Expenditure- Ministry of Finance, Government of India.

    Google Scholar 

  47. Mohan, M., and K. Tandon. 2015. Mall Management: An analysis of customer footfall patterns in Shopping Malls in India. International Journal of Scientific and Research Publications 5 (3): 1–15.

    Google Scholar 

  48. Mulligan, G.F. 1984. Agglomeration and central place theory: A review of the literature. International Regional Science Review 9 (1): 1–42.

    Article  Google Scholar 

  49. Pandey, S., and V.R. Chand. 2014. Consumer Behavior towards Retail Outlets in India -Literature Review. International Journal of Engineering and Management Research 4 (2): 2250–2758.

    Google Scholar 

  50. Patton, M.J. 1991. Qualitative research on college students: Philosophical and methodological comparisons with the quantitative approach. Journal of College Student Development

  51. Prendergast, G., N. Marr, and B. Jarratt. 1998. Retailers’ views of shopping centres: A comparison of tenants and non-tenants. International Journal of Retail and Distribution Management 26 (4): 162–171.

    Article  Google Scholar 

  52. Rabbanee, F.K., B. Ramaseshan, C. Wu, and A. Vinden. 2012. Effects of store loyalty on shopping mall loyalty. Journal of Retailing and Consumer Services 19 (3): 271–278. https://doi.org/10.1016/j.jretconser.2012.02.001.

    Article  Google Scholar 

  53. Reimers, V., and V. Clulow. 2004. Retail concentration: a comparison of spatial convenience in shopping strips and shopping centres. Journal of Retailing and Consumer services 11 (4): 207–221.

    Article  Google Scholar 

  54. Sengupta, A. 2008. Emergence of modern Indian retail: an historical perspective. International Journal of Retail & Distribution Management 36 (9): 689–700.

    Article  Google Scholar 

  55. Sharma, S., and A. Dhamija. 2013. Malls more than double in five years. https://timesofindia.indiatimes.com/business/india-business/Malls-more-than-double-in-five-years/articleshow/21696915.cms Accessed 14 May 2017.

  56. Shim, S., and M.A. Eastlick. 1998. The hierarchical influence of personal values on mall shopping attitute and behavior. Journal of Retailing 74 (1): 139–160.

    Article  Google Scholar 

  57. Singh, H., and S.K. Bose. 2008. My American cousin: A comparison between Indian and the US malls. Journal of Asia-Pacific Business 9 (4): 358–372.

    Article  Google Scholar 

  58. Singh, H., and S. Prashar. 2013. Factors defining shopping experience: an analytical study of Dubai. Asian Journal of Business Research 3 (1): 36–53.

    Article  Google Scholar 

  59. Singh, H., and S. Prashar. 2014. Anatomy of shopping experience for malls in Mumbai: A confirmatory factor analysis approach. Journal of Retailing and Consumer Services 21 (2): 220–228.

    Article  Google Scholar 

  60. Singh, H., and V. Sahay. 2012. Determinants of shopping experience: Exploring the mall shoppers of national capital region (NCR) of India. International Journal of Retail & Distribution Management 40 (3): 235–248.

    Article  Google Scholar 

  61. Sinha, P.K., and S.K. Kar. 2010. Insights into the growth of new retail formats in India. In Retailing in the 21st century (Second Edition): Current and future trends, 119–140. https://doi.org/10.1007/978-3-540-72003-4_8

  62. Srivastava Dabas, C., B. Sternquist, and H. Mahi. 2012. Organized retailing in India: Upstream channel structure and management. Journal of Business & Industrial Marketing 27 (3): 176–195. https://doi.org/10.1108/08858621211207216.

    Article  Google Scholar 

  63. Srivastava, N. 2015. Why all shopping malls in India aren’t flourishing. The Financial Express: https://www.financialexpress.com/economy/why-all-shopping-malls-in-india-arent-flourishing/122011/. Accessed 24 Mar 2019.

  64. Srivastava, S., P. Palande, and S. Hussain. 2015. Behind the big fat Indian mall. https://www.forbesindia.com/article/real-issue/behind-the-big-fat-indian-mall/39895/1. Accessed 25 Mar 2019.

  65. Strauss, A., and J. Corbin. 1994. Grounded theory methodology. Handbook of Qualitative Research 17: 273–285.

    Google Scholar 

  66. Tandon, A., A. Gupta, and V. Tripathi. 2016. Managing shopping experience through mall attractiveness dimensions: An experience of Indian metro cities. Asia Pacific Journal of Marketing and Logistics 28 (4): 634–649.

    Article  Google Scholar 

  67. Teller, C., A. Alexander, and A. Floh. 2016. The impact of competition and cooperation on the performance of a retail agglomeration and its stores. Industrial Marketing Management 52: 6–17.

    Article  Google Scholar 

  68. Teller, C., and J. Elms. 2010. Managing the attractiveness of evolved and created retail agglomerations formats. Marketing Intelligence & Planning 28 (1): 25–45.

    Article  Google Scholar 

  69. Teller, C., and J.R. Elms. 2012. Urban place marketing and retail agglomeration customers. Journal of Marketing Management 28 (5–6): 546–567.

    Article  Google Scholar 

  70. Teller, C., J.R. Elms, J.A. Thomson, and A.R. Paddison. 2010. Place marketing and urban retail agglomerations: An examination of shoppers’ place attractiveness perceptions. Place Branding and Public Diplomacy 6 (2): 124–133.

    Article  Google Scholar 

  71. Teller, C., and T. Reutterer. 2008. The evolving concept of retail attractiveness: What makes retail agglomerations attractive when customers shop at them? Journal of Retailing and Consumer Services 15 (3): 127–143.

    Article  Google Scholar 

  72. Teller, C., T. Reutterer, and P. Schnedlitz. 2008. Hedonic and utilitarian shopper types in evolved and created retail agglomerations. The International Review of Retail, Distribution and Consumer Research 18 (3): 283–309.

    Article  Google Scholar 

  73. Teller, C., and P. Schnedlitz. 2012. Drivers of agglomeration effects in retailing: The shopping mall tenant's perspective. Journal of Marketing Management 28 (9–10): 1043–1061.

    Article  Google Scholar 

  74. Teller, C., and J.A. Thomson. 2012. Gender differences of shoppers in the marketing and management of retail agglomerations. The Service Industries Journal 32 (6): 961–980.

    Article  Google Scholar 

  75. Turhan, G., M. Akalın, and C. Zehir. 2013. Literature review on selection criteria of store location based on performance measures. Procedia - Social and Behavioral Sciences 99: 391–402. https://doi.org/10.1016/j.sbspro.2013.10.507.

    Article  Google Scholar 

  76. Uncles, M.D. 2010. Retail change in China: Retrospect and prospects. The International Review of Retail, Distribution and Consumer Research 20 (1): 69–84.

    Article  Google Scholar 

  77. Varman, R., and R.W. Belk. 2012. Consuming postcolonial shopping malls. Journal of Marketing Management 28 (1–2): 62–84.

    Article  Google Scholar 

  78. Walker, D., and F. Myrick. 2006. Grounded theory: An exploration of process and procedure. Qualitative Health Research 16 (4): 547–559.

    Article  Google Scholar 

  79. Yan, R.N., and M. Eckman. 2009. Are lifestyle centres unique? Consumers' perceptions across locations. International Journal of Retail & Distribution Management 37 (1): 24–42.

    Article  Google Scholar 

  80. Yip, T.C., K. Chan, and E. Poon. 2012. Attributes of young consumers' favorite retail shops: A qualitative study. Journal of Consumer Marketing. 29 (7): 545–552.

    Article  Google Scholar 

Download references

Author information

Affiliations

Authors

Corresponding author

Correspondence to Arpita Khare.

Ethics declarations

Conflict of interest

The author states that there is no conflict of interest.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Khare, A. Location and agglomeration factors predicting retailers’ preference for Indian malls. J Market Anal (2020). https://doi.org/10.1057/s41270-020-00075-7

Download citation

Keywords

  • Agglomeration
  • Location
  • Catchment area
  • Mall retailers
  • India