Roberts.pdf

7/27/2019 Roberts.pdf

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SHOPPING CENTRE CONCEPT EVOLUTION: AN HISTORICAL ANALYSIS OF

THE AUSTRALIAN EXPERIENCE

Jane RobertsUniversity of Newcastle

Bill Merrilees

Griffith University

Abstract

A five-stage framework is used to analysis changes in the evolution of shopping centre

developments within Australia. Key findings highlight the trend towards larger scale retailformats and the continuing importance of entertainment, services and the social element insupporting the retail concept. Additionally, there has been an increasing codification of the

leisure experience.

Introduction

Shopping centres have significantly impacted on the way we shop. The first shoppingcentres were radical, not only in scale, but in their underlying ideology which set out to create

utopian civic centres. Shopping centres have been so successful, that they have beeneffectively assimilated into the environment and are now simply taken for granted. Little,however, has been written about the evolution of shopping centres in the Australian context.

The purpose of this study has been to examine the development of shopping centres in relationto how the shopping centre concept has evolved over time, particularly their design and their

retail focus and what that means for the consumer. The key components of the shopping

centre concept, which include retail, services, entertainment and the social element, will beexamined as to how they have changed over time in terms of form, structure and codification.

A brief outline of the successive stages of shopping centre developments will follow whichwill then be examined more critically through the changes in focus of the key features in the

Australian context. The changes will then be evaluated in terms of the usefulness of the five-stage framework.

Stages of Shopping Centre Developments in America

The shopping centre is largely an American concept and the growth of the shopping centreindustry there has been well documented, (Maitland,1990; Ghosh and McLafferty,1991). It is

thus appropriate to use American studies as a basis for identifying the five stages of shoppingcentre developments for our paper. The first style of shopping centre, such as Raleigh in

America in 1949, while essentially reflecting a traditional retail strip format, was centrallymanaged with a uniformly themed appearance. A further innovation was that it focused onseparating the pedestrian from the car. The Stage Two centres, which began to develop in

1958, took this concept further and separated the pedestrian from the outdoors by making thecentres fully enclosed. In these climate controlled consumer spaces, a further element was

incorporated, that of the leisure/entertainment dimension. Examples of these features included


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cinemas, cafes, childrens amusements and the provision of entertainment such as live

performances and fashion parades.The Third Stage, sees leisure and entertainment in shopping centres being more explicitly

badged, marketed and managed as part of the shopping centre concept. Such change began tooccur in the US in the 1980s, as the traditional shopping centre shopping centre anchors, thedepartment stores, went into a period of decline. Shopping centre managers sought different

approaches, such as the themed restaurants, theme parks, much larger cinema complexes and

a greater focus on food (Maitland 1990). The Fourth Stage is characterised by specialisation,with centres focusing upon one particular retail area, such as fashion, bulky goods, furniture,home and garden, food or convenience, often in a large retail format. There is no longer anassumption that centres will provide a one-stop shopping service, but rather, they cater for a

segmented and highly mobile consumer population. This style of centres was the mostpopular shopping centre development in the 1990s. The Fifth Stage of shopping centres is

still emerging. Key characteristics however, are an increase in mixed-use developments, suchas factory outlets, cinema and food, or office, residential and convenience goods (Beyard &OMara 1998).

The Australian Context

The five-stage development framework was found to apply to the Australian context,

although generally following a slightly later time period. The first Stage 1 centres appeared inSydney and Chermside in 1957. Chermside promoted itself as the first drive-in centre, with

initial parking for 650 cars, and included a department store, supermarket, 24 specialty stores,a child minding centre and office space (Kingston 1994, p.96). Roselands in Sydney, whichopened in 1965, typified the Stage 2 centres. It was fully enclosed with 339,350 square feet of

retail space plus an additional 115 140 square feet in public space. Grace Bros departmentstore was the major anchor, plus a Coles variety store and supermarket, and 95 specialty

stores. Key features of Roselands were its internal landscaping, which included a Raindrop

fountain, ponds and sculptures and its Four Corners food hall, with 14 outlets to choose from.Additionally, there were a wide range of community services, such as a Town Hall and child

minding service, as well as health service providers and banks. Roselands also had a cinema,which was also used for live television broadcasts from the centre, and the Rendezvous

Lounge for relaxing and meeting friends.The first Stage 3 centres began to emerge in the mid 1990s. These centres, such as

Westfield Parramatta and Westfield Tuggerah firmly placed entertainment as an integral part

of the shopping centre dynamics. While Tuggerah opened, ab initio, as Stage 3 centre,Parramatta evolved into one. It opened in 1975 as a Stage 2 centre. Following the 1995

redevelopment and expansion, it included an 8 screen multiplex cinema as well as Intencity,an interactive entertainment complex. The centre added a second department store, DavidJones to its anchors, along with Grace Bros, and had a total of 350 specialty stores, including

2 food courts with over 40 outlets.The first Stage 4 specialty centres also began to emerge in the mid-1990s. The first factory

outlets were opened in Birkenhead Point and Maroubra in Sydney. The first power centreswere Moore Park (Sydney) and Stockland Glendale (Newcastle) in 1996. Specialistconvenience centres have more recently emerged, such as in Charlestown strip zone in 2000,

which contains mostly fast food outlets. These centres almost replicate the neighbourhoodstrip streets, but are centrally managed and there is little relationship between residential

locality and users of the centre. Over the past few years the most rapidly growing type of


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centre have been the bulky-goods ones, with an emphasis on furniture, electrical and

furnishings.Stage 5 centres are still evolving. Examples are the Paddys market development, which

includes a cinema complex, factory outlets, specialty foods on top of the traditional varietymarkets underneath. The most dramatic representation of this new mixed-use type of centre isHarbour Town on the Gold Coast, which opened in 1999. It combines numerous factory

outlets with an entertainment (cinema) complex, together with a wide variety of cafes and

restaurants. The Leichardt Forum, in Sydney, combines residential, high-end retail,convenience centres and cafes and restaurants, within a replica Italian piazza.

Changes in Key Concepts

How then, have the four critical components of shopping centres, retail, services,entertainment and social, changed over time.Retail

The retail component has been dynamic throughout the history of shopping centres, butremains the most dominant element of the ubiquitous Stage 3 centres. Department stores such

as Grace Bros/Myers or David Jones, remain as key anchors, as do the large supermarkets.Food, fashion and homewares have become increasingly integral elements in the retail mix.However, there has been an increasing homogeneity in the retailers found in shopping centres

across Australia. When centres like, Chadstone and Roselands initially opened, there werevery few retail chains. The shopping centre industry encouraged the growth of chains through

the process of inviting successful tenants of existing centres to open branches in newdevelopments. The Stage 4 centres focus on a specific retail format to suit their particulararea of specialisation, whether it is a mix of factory outlets, boutiques, food, convenience or

bulky goods. While these centres, have generally adopted large scale formats for their retailoutlets, they do not try to provide a total retail mix. Stage 5 developments, also have a specific

focus, however their retail mix complements and supports the other elements of the shopping

centre.

Services

The provision of services was a key element for Roselands at the time of opening. Itprovided outlets for the post office, TAB, laundromat, medical benefit funds, Department ofMain Roads, chemists, a family doctor and dentist, petrol outlets, banks, free strollers and

wheelchair access, free child care services, community halls, a courtesy bus and parcelpickup. Roselands has maintained a high level of service providers in the centre. For

example, health services and strollers are still available and the community hall is still usedfor groups such as Red Cross, Country Womens Association, Weight Watchers and Tai Chi.A child minding service is provided, though it was incorporated within a homewares/coffee

shop.Westfield Paramatta, also retains key service elements, such as access by public transport,

ample car parking, and the provision of health facilities. However, where services can betenanted to other providers, this has been done so. For example, the child-minding centre,although promoted as a response to Westfields community initiative, is funded by State and

Federal governments and run by Parramatta Council. Stage 4 and 5 centres do not try toprovide a total customer environment, but they should be mindful of making the centres

accessible. Their main service to the consumer is in the form of cheaper prices, bettercomparison shopping, better access to leisure and entertainment and greater convenience.


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Entertainment

Even though Roselands opened as a Stage 2 centre, entertainment was a criticalunderpinning for the retail component and is perhaps the aspect that is remembered most byshoppers at the time. Bands like the Beach Boys performed there, fashion parades, live

television broadcasts, including Bandstand took place, a cinema was included, as was a wide

range of entertainment facilities for children. Various promotions and competitions were heldregularly. Much of the activity took place around the landscaped central court, in which theRaindrop fountain presided - a spectacular water feature with accompanying ponds. Therewere also climbing sculptures for children in view of the fountain. Entertainment, as

evidenced by Westfield Parramatta, has also been a critical underpinning for the retailcomponent. However, as with services, the entertainment has been positioned as a tenant

rather than as an activity provided by the centre. Entertainment within the stage 4 and 5centres is dependant on the particular focus of the centre.

Social

The social aspect relates to the idea of being a communal meeting space. It allows for thesocial dimensions of participating in a community recreational activity, for seeing and beingseen, for meeting and passively enjoying the atmosphere. When Roselands first opened, this

was considered an extremely important function of the centre. Early promotions stated thatRoselands would be the prime choice for people to meet, avoiding the chaos of the city.

Ambient music, such as the grand piano, landscaping and a wide variety of places to eat,supported this pursuit. The Rendezvous Lounge area provided a comfortable place to wait andmeet your friends, complete with the services of a hostess who could advise of the attractions

of the day.The social element is still important in the Stage 3 centres. For Westfield Parramatta, it has

become a significant meeting place for young people. However, as groups of young people

are considered threatening by other consumers, the centre has been designed to include ayouth precinct. For other consumers, the food hall is a popular space to engender a social

experience, as does being part of the promenade (Goldman 2001). In stages 4 and 5 the socialaspect continues to be important, but takes place in limited areas, such as coffee shops and

restaurants.The following table summarises the five stages of developments and highlights the changes

in importance of the key shopping centre concepts. While it is clear that retail is of high

importance in all stages, the other elements fluctuate according to the style of centredevelopment.

Importance of Key Shopping Centre ConceptsTime

period

Key character

Retail Entertainment Social ServicesStage1 1957 Pedestrian space High Low Low Low

Stage2 1960s Enclosed mall High High High High

Stage3 1996 - Larger, moreovert

entertainment

High High High High

Stage4 1996 - Specialisation High Varies Mid Mid

Stage5 2000- Mixeduse

convenience

High Varies High Mid

Table 1: Summary of key stages in Australian shopping centre developments.


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Evaluation of the Five Stage Framework

It was useful on a number of levels to examine the changes in shopping centre developmentthrough the 5-stage framework. The framework helps document historical changes byproviding pivotal characterisation points. This can assist in comparing and contrasting

shopping centre developments elsewhere and to identify some of the broader social changes

which may have influenced the change.We were able to compare the Australian experience to what has occurred in America. The

level of adoption of the specialty centres in Australia is much lower than what has occurred inAmerica. Versions of the specialised centres, such as the fashion factory outlets, the

convenience centres, the home lifestyle centres, have emerged in the last decade, but not at therate of American development. There has been little development of the power centre in

Australia beyond the initial two centres developed in 1996. The dearth of growth here may bedue to greater legislative control and the impact new developments would have on existingnearby retail areas. As the power centres aim to draw customers from a wide regional base,

the opposition to such centres would be significant.While generally following the American model, the centres have been shaped with an

Australian flavour. Australian supermarkets remain key anchors in the regional centres,maintaining the concept of one-stop shopping. American supermarkets generally do notappear in centres other than the neighbourhood centres, and the British and European

supermarkets are usually in stand-alone hypermarkets. Many of the large British andAmerican centres draw most of there custom from a wide regional area while grocery

shopping is done closer to their homes. In Australia, regional centres are still situated within astrong community population base. While drawing much of there custom from a wide area,there is still a major local customer base, which use the centre as their primary commercial

base. This trend may change as shopping centres become more specialised.Australian shopping centre management companies such as Westfield are significant

players in the American shopping centre industry, and are leading the way in some areas such

as shopping centre branding. Lend Lease has recently launched into the Asian market and isexporting Australian knowledge and management experience. The five-stage framework has

also assisted in dispelling myths about new retail formats. For example, Stage 3 centres arecharacterised by their entertainment focus. However, we can see from the Roselands

experience that entertainment has been a critical factor for the past 30 years. . The differenceis in the form andstructure of the entertainment provided. Furthermore, the framework alsohelps to identify new forms of the shopping centre concept, such as the newly emerging Stage

5 centres. We are now able to track changes in the shopping centre concept and trace theinfluence of any changes in the economic and social environment.

Conclusions

The five-stage framework analysis presented here highlights four key issues. Firstly, there

has been a shift towards larger and to more specialised retail shopping centre formats.Secondly, the social, entertainment and service elements of the shopping centre concept haveremained important over the past 30 years. Thirdly, there has been a gradual change in the

codification of these elements. By this we mean that the elements continue to be offered buthave been shaped and tenanted into a more commercial and badged package and allocated to

certain precincts. Fourthly, the Australian experience, while generally mirroring that of the


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US, differs in the retention of the supermarket as a key anchor, and in its slower adoption of

more specialised centres, such as power centres and factory outlet centres.Although we have developed the five stage historic framework to enable us to comment on

the above four key issues, the framework is robust enough to enable other issues to bediscussed and evaluated. For example, we could use the framework to discuss changes in themarketing and promotion practices of shopping centres over time. This could encompass

issues such as changes in the way shopping centres have marketed themselves in face of

increased competition, and the role the key concepts have had in differentiating the centres.We could also try to understand the role of changing consumer tastes in explaining theevolution of the shopping centre concept. Lastly, but without exhausting the list, theframework could be used to understand the changing dynamics of internal and external

relationships within the centres, particularly management-tenant relationships.

References

Bednar, Michael J. (1990)Interior Pedestrian Spaces, London, BatsfordBeyard, Michael and Omara,W. Paul (1998) Shopping Center Development Handbook Urban

Land Institute, USAGeist, Johann F. (1983) Arcades, the History of a Building Type, Cambridge Mass., MITpress.

Ghosh, A. and McLafferty, S. (1991), "The shopping center: A restructuring of post-warretailing",Journal of Retailing, 67 (3) (Fall): 253-267.

Goldman, Mitzi (2001)Parra SBS Independent FilmsHumphrey, Kim. (1998) Shelf Life: Supermarkets and the Changing Cultures of ConsumptionCambridge University Press

Kingston, Beverley (1994) Basket, Bag and Trolley: The History of Shopping in Australia ,Melbourne, Oxford University Press

Maitland, Barry. (1990) The New Architecture of the Retail Mall, London: Architecture

Design &Technology Press.Parramatta promotional brochure, 1996

Roselands promotional brochure, 1965

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