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The transformation of the regional shopping centre : an examination of six case studies in Vancouver… Bertelsen, Siri 1993

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THE TRANSFORMATION OF THE REGIONAL SHOPPING CENTRE:AN EXAMINATION OF SIX CASE STUDIES IN VANCOUVER B.C.BYSIRI BERTELSENB.Sc., The University of Oslo, Norway, 1990A THESIS SUBMITTED IN PARTIAL FULFILLMENT OFTHE REQUIREMENTS FOR THE DEGREE OFMASTER OF ARTS.inTHE FACULTY OF GRADUATE STUDIES(DEPARTMENT OF GEOGRAPHY)We accept this thesis as conformingto the required standardsTHE UNIVERSITY OF BRITISH COLUMBIAApril 1993©Siri Bertelsen, 1993.(Signature)3In presenting this thesis in partial fulfilment of the requirements for an advanceddegree at the University of British Columbia, I agree that the Library shall make itfreely available for reference and study. I further agree that permission for extensivecopying of this thesis for scholarly purposes may be granted by the head of mydepartment or by his or her representatives. It is understood that copying orpublication of this thesis for financial gain shall not be allowed without my writtenpermission.Department of  CIThe University of British ColumbiaVancouver, CanadaDate ^.2.9 /4 - 93DE-6 (2/88)ABSTRACTShopping centres have dominated retailing in North America since the 1950's. Buttoday, many shopping centres are facing serious problems. The future, which oncelooked unlimited and bright, now seems problematic. It is this transformation on which thisthesis will focus.This thesis examines the historical trends behind the regional shopping centreindustry. It also deals with the significance of regional shopping centres in the larger bodyof academic work. Regional shopping centres can be seen as products of modernsociety's mass production and consumption system. Their design and geographicallocation in the urban landscape is a product of both architects' and urban planners'efforts to control and regulate the modern landscape. Being a product of modernism,regional shopping centres must now meet the challenge of surviving in the post-modernera.This thesis continues with examining the development of the regional shoppingcentre industry in Canada. The first part of this development (1960-1980) wascharacterized by growth then stability. However, in the 1990's, significant numbers ofcentres have experienced considerable turbulence. The number of tenants, theconcentration and combination of different retail businesses, as well as the annualvacancy rate are all parameters used to illustrate this. The external and internal conditionsthat are affecting these contemporary changes are also described, along with theiistrategies that are being used by the owners of regional shopping centres to meet thechanges. For example, the movement away from having only goods tenants, to centreswith tenants that also provide services, such as health care and libraries. The down-grading of centres to community-oriented centres, and the increase of non-retail activitiesare other strategies currently being used to adapt to the new conditions.This thesis includes case studies of six different regional shopping centres in theGreater Vancouver Regional District. The six centres provide the study with valuableinformation about the industry's history and current condition in the general retail sector.Information was collected through shopping centre surveys, together with various retailstudies and trade articles from magazines, newspapers and periodicals. The study wasenhanced with interviews of private sector mall managers, owners and developers, as wellas the retailers in and architects of various shopping centres.The study shows that the regional shopping centre industry, to a large extent,continues to use the same development and management strategies as in the past(1960's and 1970's). The use of a universal strategy has tended to produce similar resultsin a centre's tenant mix, geographical location and architectural design. The result is thatregional shopping centres today suffer from being undifferentiated and too similar withother competitive regional shopping centres. They also struggle with the same problemsin terms of new retail competition and changing consumer demand.Regional shopping centres are facing a variety of new challenges, including newretailing concepts, cross border shopping and declining consumer spending. There areseveral strategies that are being used to deal with these changes. The main goal foriiiregional shopping centres is to find a strategy that distinguishes each from thehomogenous image that prevails today.The future of the regional shopping centre industry depends on its ability to adaptto changing consumer spending patterns in a number of ways. First, there is likely to bea return of regional shopping centres which cater to the local community. This will beachieved by changing the centre's tenant mix. The level and quality of service will also beadjusted to meet specific community requirements. Secondly, regional shopping centreswill incorporate more non-retail facilities. Non-competitive tenants are being acquired tofill in space and give the centres a more diverse character. Finally, regional shoppingcentres will include leisure and recreational activities, including amusement andentertainment facilities. Ultimately, only those centres that are able to find a specificmarket niche will survive in the long term. This is in sharp contrast to the old practice ofbeing everything for everyone.ivTABLE OF CONTENTSPAGEABSTRACT^ iiTABLE OF CONTENTS^ vLIST OF TABLES viiiLIST OF MAPS^ xAPPENDICES xiACKNOWLEDGEMENTS^ xiiFOREWORD^ xiiiCHAPTER 1 INTRODUCTION^ 11.1 DATA SOURCES AND METHOD 4CHAPTER 2 EMERGENCE OF SHOPPING CENTRES^102.1 THE SHOPPING CENTRE INDUSTRY'S HISTORY 102.2 SHOPPING CENTRE DEVELOPMENT IN CANADA^ 172.3 REGIONAL SHOPPING CENTRES AND THEIRRELATION TO THE MODERN/POST-MODERN MOVEMENT^172.3.1 INTRODUCTION^ 172.3.2 INDUSTRIAL REVOLUTION^ 192.3.3 ARCHITECTURE, ART ANDREGIONAL SHOPPING CENTRES^ 202.3.4 URBAN PLANNING AND REGIONAL SHOPPING CENTRES^222.3.5 URBAN GEOGRAPHY ANDREGIONAL SHOPPING CENTRES^ 262.3.6 THE POST-MODERN PERIOD 292.3.7 VANCOUVER FROM THE MODERN TOTHE POST-MODERN PERIOD^ 32CHAPTER 3 CHANGING SHOPPING CENTRE CHARACTERISTICS: SIX CASE STUDIES IN VANCOUVER. 353.1 A GENERAL COMPARISON OF THE SIXSHOPPING CENTRES^ 353.2 LOCATION AND ACCESSIBILITY^ 393.3 THE SHOPPING CENTRES' LAYOUT AND DESIGN^ 423.3.1 THE SHOPPING CENTRE'S LAYOUT 43vPAGE3.3.2 ARCHITECTURAL DESIGN AND LANDSCAPING^453.3.2.1 THE EXTERNAL DESIGN^ 453.3.2.2 THE INTERNAL DESIGN 473.4 VACANCY RATES^ 493.5 FREQUENCY OF CHAIN STORES^ 513.5.1 RETAIL CHAIN STORES AS PART OFTHE TOTAL RETAIL INDUSTRY^ 523.5.2 RETAIL CHAINS' SIZE^ 553.5.3 NATIONAL VERSUS LOCAL ANDPROVINCIAL CHAINS 553.5.4 RETAIL CHAINS LOCATED INSHOPPING CENTRES^ 573.5.5 TYPE OF RETAIL CHAINS AND THEIRLOCATION IN SHOPPING CENTRES^ 583.5.6 RETAIL CHAINS AND THE TYPE OFSHOPPING CENTRE LOCATION 595.7 REGIONAL SHOPPING CENTRES ANDTHE TYPES OF CHAIN STORE OPERATION^ 593.6 TENANT MIX IN THE REGIONAL SHOPPING CENTRE 623.6.1 FASHION AND FOOD STORES^ 623.6.2 GOODS TO SERVICE RATIO 643.7 THE SIX CASE STUDIES^ 663.7.1 BRENTWOOD MALL 663.7.2 CAPILANO MALL 763.7.3 LOUGHEED MALL^ 813.7.4 OAKRIDGE CENTRE 873.7.5 RICHMOND CENTRE 923.7.6 SURREY PLACE MALL^ 983.8 SUMMARY^ 103CHAPTER 4 ACCOUNTING FOR THE CHANGE^1094.1 INTRODUCTION4.2 POPULATION STRUCTURE AND CONSUMER BEHAVIOUR4.2.1 FACTORS THAT INFLUENCE THEPOPULATION STRUCTURE4.2.2 SUMMARY4.3 SPENDING POWER4.3.1 THE YOUNG4.3.2 THE MIDDLE AGED4.3.3 SENIORS4.3.4 SUMMARY109109111113114114115116116v iPAGE4.4 LIVING ARRANGEMENTS^ 1174.4.1 DOUBLE INCOME FAMILIES^ 1184.4.2 SINGLE PARENT FAMILIES 1184.4.3 COMMON-LAW HOUSEHOLDS 1194.4.4 SINGLE OCCUPANCY HOUSEHOLDS^ 1204.4.5 FORCES BEHIND THE CHANGE 1204.4.6 SUMMARY^ 1214.5 LIFE STYLES 1234.5.1 LIFE STYLES AND CONSUMER BEHAVIOUR^1244.6 CONSUMER ATTITUDES^ 1254.6.1 THE TRANSITION FROM A "NEED"TO A "WANT" DRIVEN CONSUMER^ 1264.6.2 VALUES^ 1274.6.3 EDUCATION 1274.6.4 LOYALTY 1284.6.5 CONSUMER ATTITUDE AND CONSUMER BEHAVIOUR^1294.7 NEW COMPETITORS^ 1314.8 CHANGING ECONOMIC CONDITIONS^ 1354.9 CHAIN STORE ORGANIZATIONS 1364.10 THE DEPARTMENT STORES^ 1404.10.1 HISTORY^ 1404.10.2 THE DEPARTMENT STORE AND THESHOPPING CENTRE INDUSTRY^ 1414.10.3 CURRENT TRENDS^ 1464.10.4 SUMMARY^ 149CHAPTER 5 STRATEGIES^1505.1 INTRODUCTION^ 1505.2 IMPROVED SERVICE 1515.3 LOW PRICE CONCEPT^ 1555.4 MIXED-USE CENTRE 1585.5 NEW TENANT MIX 1625.6 ARCHITECTURAL DESIGN^ 1665.7 ENTERTAINMENT/AMUSEMENT 173CHAPTER 6 CONCLUSION AND RECOMMENDATIONS^177BIBLIOGRAPHY^ 182LIST OF INTERVIEWS 201APPENDIX A DESIGN AND LAYOUT CHECK LIST^ 202APPENDIX B STANDARD INTERVIEW CHECK LIST 205APPENDIX C TENANT CATEGORIES^ 207APPENDIX D MAPS^ 210viiLIST OF TABLES.TablePAG E1^The Canadian Shopping Centre Industry^ 182^The Six Case Studies GeneralCharacteristics, 1990^ 363^Greater Vancouver: Commercial Floor Space asa function of Population, 1990^ 404^Historical Statistics of Retail Chains,(Excluding Department Stores)Canada, 1960 to 1989^ 535^Historical Statistics on of Sale of DepartmentStores, Chain Stores and IndependentStores, as a Percentage of Total RetailTrade, Canada, 1960-1989 546^Distribution (in Percent) by Number and Sales ofRetail Chains, By Number of Stores Operated^ 567^Retail Chain Stores' (Excluding DepartmentStores) Distribution (in Percent) ofNumber and Sales, by Type of Location,Canada, 1986-1989^ 568^Total Number and Sales of Chain Stores inShopping Centres as a Percentage of TotalChain Stores, Canada, 1973 and 1988^ 589^Number of Retail Chain Stores in ShoppingCentres, By kind of Business,Canada, 1973 and 1988^ 6010 Total Number and Sales of Retail Chain Storesin Shopping Centres by Percentage, byType of Location, for 1986, 1987 and1988. Vancouver, B.C.^ 61viii11^Number and Percentage of Vacancies in the^PAGESix Case studies^ 7012 Number and Percentage of Chain Stores inthe Six Case Studies^ 7213 Number and Percentage of Clothing and ShoeStore in the Six Case Studies^ 7314 Number of Food-Serving Tenants in the SixCase Studies^ 7415^Goods to Service Ratio for the SixCase Studies^ 7516 Number and Percentage of Fashion Chain Storesin the Six Case Studies^ 10717 Percentage of Population By Age,Canada, 1921-1991^11118 Average Income for Individuals by Age,Canada and British Columbia, 1990^ 11519 Historical Statistics on Department Stores 14320 Number of Retail Stores and Sales by Type ofShopping Centres, 1973^ 145ixLIST OF MAPSSee appendix DMap 1. The Major Road Networks in the Greater Vancouver Area. p.211Map 2. The Six Regional Town Centres in Greater Vancouver Area. p.213APPENDICESAppendix A Design and Layout Check List p. 202Appendix B Standard Interview Check List p. 205Appendix C Tenant Categories^p. 207appendix D Maps^ p. 210xiACKNOWLEDGEMENTThere are naturally many ups and downs throughout the process of writing athesis. However, the interest and encouragement I received from many people during thistime helped me to complete this study. My thanks go to those mall managers who tookthe time to share their expertise and ideas with me. A warm thank you to WalterHardwick, who guided and encouraged me thoughout my work. And finally a fond thanksto my husband David who guided me through the English language.xii[Malls] are havens of private property, showcases for theersatz and national chains, burdened with cheap marble,bereft of contingency...cold winds never blew in these orderedspaces, but neither does the blood of the city's life flow.' 11 Thorsell, William. The Globe and Mail. April 6, 1991.XiiiCHAPTER 1INTRODUCTION The first Canadian shopping centre was built in 1959 in West Vancouver--The ParkRoyal Shopping Centre. To a degree, the introduction of the shopping centre as a retailtype epitomized some of the changes in society that occurred in the first two decadesafter the Second World War. The Post Second World War period brought to society somesignificant changes. There was a dramatic increase in population and with it a growth inspending power. At the same time people experienced a rapid increase in car ownership.Planned shopping centres started to enter the retail market during this period. They werea fundamental part of the change in industrialized society. In a world of mass productionand consumption, shopping centres became the new tool for reaching consumers andconvincing them to part with their money. They served the growing family-oriented,suburban population, and offered easy access to the automobile-consumer. Since then,the shopping centre industry has grown tremendously in terms of number of centres andalso in terms of influence on society in general.In the nineteen sixties and seventies, the industry went through a major expansion.There were large numbers of new suburban communities to serve. At times, shoppingcentre developers could not build fast enough for the growing suburban population. Inthis time period the industry became dominated by national shopping centre developers,financial bankers and national mall tenants. It was the cooperation among these threeparticipants and their experience that created the "universal recipe" for developing regional2shopping centres. As a result, most regional shopping centres have become very muchthe same regardless of where they are located on the North American continent.In the eighties, the development of the shopping centre industry continued,although there were signs in the retail industry that significant changes in retailing werecoming. In the late seventies and beginning of the eighties the mass production (andconsumption) system which had also characterized previous development started todecline. The relationship between producers and distributors as well as betweendistributors and consumers met new challenges. This caused fundamental changes to theshopping centre industry. The result is an increased number of new, strong retailers suchas factory outlets or specialty stores which have entered the market. These retailersspecialize in different segments of the retail market and do not locate in shopping centres.However, the new retailers have increased the competition for the consumer dollar.Regional shopping centres, with their basic marketing strategy for being all things to allpeople, are therefore forced to meet a new competitor in every sector of their operation.The cities and the people living in them have also changed during this period. Anincreased number of cities began to realize the limits of their growth in the late eighties.This is a problem that has become even more evident in the nineties. There are numerousissues that will have to be reconsidered in the process of adjusting to the future. Forexample, there is a need for increased participation and control by cities in themanagement of urban change. Cities must move away from suburban growth patternstowards a denser style of urban areas. A new understanding of how transportationproblems should be solved will also be required in the process of adjusting to the3changes to the urban areas. These are but few of the current issues that characterize thecurrent urban debate, which in turn will influence the location and form of regionalshopping centres in the future.Regional shopping centres in the 1990's therefore face a radically differentenvironment in the 1990s than was the case when the were first conceived anddeveloped. Although signs were present in the eighties, a booming economy made itpossible for consumers and retailers to ignore them and continue along as before. Butdevelopers eventually came to realize that things had irrevocably changed in the presentdecade. Presently, few new centres are planned for development in Canada and B.C. Theshopping centre industry today is more concerned about readjusting and remodellingtheir existing centres to meet the new market conditions.Although much has been written about the development of the shopping centreindustry, little has been written about the changes underway in the contemporary periodand the future conditions that will affect them. It is this part of the shopping centreindustry's story that I will address in this study. But in order to forecast the future, onemust look at the past. Accordingly, in the first part of this study I will look at the historicaldevelopment of the shopping centre industry. I will review how architects, urban plannersand geographers have treated regional shopping centres in an academic sense. Six casestudies from the Vancouver Census Metropolitan Area (CMA) 1 will be examined todocument changes. Them I will examine the various reasons for contemporary changes1 Vancouver CMA refers to Vancouver Census Metropolitan Area, which includes allof the GVRD municipalities and the municipalities of Pitt Medows (water, sewers) andMaple Ridge (parks, water and sewers). (See Table 3 for details.)4in the regional shopping centre industry. They include both internal and external forces.The final part of the study will examine the different strategies that are now beingemployed in the adjustment process.ti DATA SOURCES AND METHOD. The illustration of the shopping centre industry's historical development in termsof numbers and sales, is based on data from Statistics Canada. However, StatisticsCanada has been inconsistent in the publication of this kind of data. The first issue ofShopping Centres in Canada was published in 1961. However, in 1973, Statistics Canadastopped issuing this publication. Since 1973, only two publications present data on theCanadian shopping centre industry (Statistics Canada 1976; 1989a). 2 The study thereforerelies on only these data, and as a result some periods have not been documented asfully as others. In addition, use was made of literature about geographical, architecturaland urban planning issues to illustrate that regional shopping centres are products of amodernist society.Classification of shopping centres was selected from information from The UrbanLand Institute (1987 & 1990), Statistics Canada (1976 & 1989a) and Monday Report onRetailers (1990a). The Urban Land Institute defined three different categories of shoppingcentre operations as early as 1973. The leading tenants, or anchors of the centre, are2 A telephone call by the author to Statistics Canada in Ottawa ascertained that it wasnot possible to special order a set of more consistent data.5used as the basis for the classification. The categories are, the neighbourhood centre, thecommunity centre, and the regional centre. Recently the ULI has expanded the numberof categories by one, namely the super regional centre. 3Neighbourhood Shopping Centre. A neighbourhood centre provides for the sale ofconvenience goods (foods and drugs) and personal services (laundry and dry cleaning,barbering, shoe repairing, etc.) for the day-to-day living needs of the immediateneighbourhood. It is built around a supermarket as the principal tenant, the GLA (GrossLeasable Area) ranges from 30,000 to 100,000 square feet.Community Shopping Centre.  A community centre provides in addition to the conveniencegoods and personal services, a wider range of facilities for the sale of soft lines (wearingapparel for men, women, and children) and hard lines (hardware and appliances). Thecommunity centre is built around a junior department store, variety store, or discountdepartment stores as the major tenant, in addition to a super-market. Its GLA ranges from100,000 to 300,000 square feet.Regional Shopping Centre.  The regional centre provides for general merchandise,apparel, furniture, and home furnishing in depth and variety, as well as a range ofservices and recreational facilities. It is built around one or two full-line department stores3 The following four definitions are adapted from ULI (1970 & 1990).6which are generally not less than 100,000 square feet. Its GLA ranges from 300,000 to850,000 square feet.Super Regional Centre. A super regional centre provides for an extensive variety ingeneral merchandise, apparel, furniture, and home furnishing, as well as a variety ofservices and recreational facilities. It is built around three or more full-line departmentstores, which are generally not less than 100,000 square feet each. Its GLA ranges from600,000 to 1,500,000 square feet.Statistics Canada (1976 & 1989a) uses the same categories as the Urban LandInstitute. However, indicators used to distinguish the different levels of operation are ratherlimited. In Statistics Canada's publications the only indicators mentioned are the numberof retail outlets and/or restaurants. 4 It should be noted that later issues of statistics addone more category, the "indoor shopping mall". 5Neighbourhood Shopping Centre. The neighbourhood shopping centre has a minimumof five or a maximum of fifteen retail outlets and/or restaurants.4 A phone call to Ottawa, by the author, confirmed that these were the only indicatorsconsidered by Statistics Canada.5 The following four definitions are adapted from Statistics Canada (1989).7Community Shopping Centre. The community shopping centre has a minimum of sixteenand a maximum of thirty retail outlets and/or restaurants.Regional Shopping Centre. The regional shopping centre has a minimum of thirty outletsor more.Indoor Shopping Mall. A group of at least ten retail and service outlets, of which fouroutlets must be retail and one a restaurant or of which five outlets must be retail, and therest of the tenants must be offices, apartments, hotels or carrier stations.Monday Report on Retailers, the publisher of the Canadian Directory of ShoppingCentres (1990a), employs four shopping centre categories, the neighbourhood centre,the community centre, the regional centre and the downtown centre. The criteria formembership in each category is not explained by the publication. It became clear aftera conversation with the publisher of the  Canadian Directory of Shopping Centres that thecategories are used without having any clear definition of the criteria. The company simplysends out questionnaires to all listed shopping centres in Canada, and it is up to theindividual shopping centre to define its own particular category.I have used the Monday Report on Retailers' directory of Canadian shoppingcentres to identify six regional shopping centres in the Vancouver area that would serveas case studies in this study. I then compared the six case studies to the two definitions8set up by ULI (1987 & 1990) and Statistics Canada (1976 & 1989a). The six case studiesthat were chosen were therefore in accordance with all three publications.Greater Vancouver Regional District's (GVRD)6 (1986 & 1989 & 1990a & 1991)various statistical publications, together with this author's own observations are used todetermine the relative location of the six regional shopping centres. A special check-listdesigned by the author was used in the study of the centres' layouts and designs.(Appendix A).Vancouver City Directory (1959-1991) and Vancouver Suburban Directory (1966-1991) list the shopping centres' leasable units and the tenants located in the centres. Thedirectories also list vacant units in the centres and was therefore used to determine thevacancies in the malls for each year of the study.Statistics Canada (1990b & 1992a) was used to describe the number and sales ofchain stores in the Canadian retail industry. Statistics Canada (1990b) and Directory ofRetail Chains in Canada (Monday Report on Retailers, 1990b) was used to find the chainstores within the six shopping centre in this study. On this basis I have counted thenumber of chain stores in each shopping centre for each year of study period (1961,1966, 1971, 1976 & 1981-1991). I then calculated the percentage of the chain stores fromthe total number of tenants. However, my study does not differentiate between the chain6 Greater Vancouver Regional District (GVRD) is a partnership of 18 municipalities and3 electoral areas that makes up the metropolitan area of Greater Vancouver. It serves asa instance that provides essential services that are regional in nature so that intermunicipality matters can be dealt with in a optimal way, without reducing the municipalisesautonomy. (This information is adapted from GVRD 1990a).9store organization operating on a local, regional and national level. There is, to myknowledge, no source of information that categorizes chain stores according to the levelof operation.Statistics Canada's publication  Standard Industrial Classification (1988), was usedto design a tenant category system (Appendix C). In order to make the researchmanageable, twenty-eight different categories were used, some containing several sub-categories. The six regional shopping centres' tenant mix was determined on the basisof the names that were listed in Vancouver City Directory (1959-1991) and VancouverSuburban Directory (1966-1991). When the formal sources could not provide necessaryinformation, the author's own survey and the results of an examination of telephonebooks for the various years provided the information necessary to categorize tenants.Although I differentiated between tenants selling women's, men's, children's and unisexclothes in the early stage of my study, I have chosen not to separate these tenants fromthe rest of the tenants in this category in my presentation of the findings. If this were notdone there would be too many details in this study that would tend to confuse, ratherthan clarify the findings. However, it should be kept in mind that tenants offering women'sclothing dominated in the clothing category. In addition, tenants were classified as goodsor service tenants.The causes behind the changes that regional shopping centres are currentlyexperiencing was documented in a variety of literature, including periodicals, newspapersand magazine articles. The extensive interviews of shopping centre officials made by theauthor, were a valuable addition to this aspect of the study.10CHAPTER 2EMERGENCE OF SHOPPING CENTRESIn the following chapter, I will describe how the shopping centre industry developedinto an important part of general retailing industry. This will be followed by a presentationof historical data for the Canadian shopping centre industry. Then, I will describe how theregional shopping centres are products of modern society's mass production andconsumption system. I will also show how regional shopping centres' design andgeographical location in the urban landscape is a product of both architects' and urbanplanners' efforts to control and regulate the modern landscape.2.1 THE SHOPPING CENTRE INDUSTRYS HISTORY. The idea of gathering different merchants together in one location and under thesame roof can be traced back to ancient Greece. The North American version of this kindof retailing, namely the shopping centre, uses some of the same ideas found in theancient Greek market-place (Gruen & Smith, 1960, p.17-). In the modern period, thebeginning of the "shopping centre idea" occurred in Paris, France around 1800. At thistime the city's streets were unsafe and generally unsuitable for people to walk and shopin. Some merchants, therefore, built passage-ways through larger buildings, and set updisplays of their goods and services along the sides. People quickly found this to be a11convenient and safe environment for their shopping needs (Frieden & Sagalyn, 1989,p.9,10).However, there is a significant difference between the Greek and French "grouped"retailing concept, and today's shopping centre. The former two conceptions existed inareas accessible by foot; while modern shopping centres are accessible by car. In fact,the modern shopping centre is designed for and around the automobile. This has had aenormous impact on suburban as well as inner city development.The first planned shopping centre complex in North America was the Country ClubPlaza, built in 1923 in Kansas City, Missouri. (Gruen & Smith, 1960, p.12-; Vance, 1990,p.490). This mall, however, did not start a trend. The Depression of the 1930's put a haltto further development of planned shopping centres, and it was not until the decadefollowing the Second World War that shopping centre development in the United Statesbegan in earnest (Frieden & Sagalyn, 1989; Vance, 1990).The growth of this innovative form of merchandising in Canada occurred somewhatlater than in the United States. Walter Hardwick explains,[T] he severity of the depression in Canada, the longer warperiod as compared with the United States, and the extendedseller's market in Canada after World War II each contributedto holding down investment in suburban facilities until adecade or more after they had become the dominantcharacteristic of urban change in the Unites States (Hardwick,1981).It was not until the 1950's that shopping centre development in Canada began to emerge.12The first shopping mall in Canada was built in 1950 in West Vancouver; Park Royal Centre(Hardwick & North, 1992; Tant, 1992, p.206-).Although the history of shopping centre development is different in the U.S. ascompared to Canada, and similarly from city to city within each country, the forces behindthe development are generally similar, as are the results (Hardwick, 1981). In NorthAmerica, therefore, the shopping centre industry may be viewed as having passedthrough three different phases (Frieden & Sagalyn, 1989; Bernardo, 1989). The first phasefrom 1950 to 1960 was characterized by explosive growth, while in the 1970's the industryhad to make some adjustment to more competitive market conditions. In the 1980's thecompetition was tight and new marketing strategies were costly. What will happen in the1990's is open to conjecture, but past developments may give us some clues about whatlies ahead.To understand the complexity of retailing that emerged in North America during theearly 50's, one has to take a closer look at the very nature of the retail structure and howsocio-economic changes influenced the changes in the retail environment at this time. The1950's represented a period of significant social and economic change throughout NorthAmerica (Vance, 1990). For example, there was a rapid growth in population, due bothto natural factors and from immigration. This was the time when the first children of thebaby boom generation were born. Later, their dominance in terms of numbers andcultural influence would have a profound impact in many aspects of life. At the same timeas the population grew, so did its wealth. A larger part of the working population becameinvolved with various labour organizations, which improved their rights at the workplace13as well as their right to fair wages. At the same time, urban growth required increasedgovernmental control, which again increased the governmental service sector. In addition,more and more women entered the workforce. This improved families' spending power.A tremendous increase in the size of the middle class resulted. Many worked in industriesthat turned out goods for consumption by people working in other industries. Thesepeople were the ones who had the purchasing power to change the American retailstructure and consequently, economy. Not only was there an increase in per-capitaincome, there was at the same time an increase in automobile ownership. It thereforebecame necessary to build more highways as well as improve their capacity (StatisticsCanada, 1976, p.7). Suburban development away from public transit lines proliferated.The increase in people's mobility saw changes in the approaches of planners,developers and retailers. These groups realized that there would be a tremendous changein urban-rural settlements and consequently a change in consumption patterns (Jones,1969). These new trends were the impetus behind the development of the suburbanshopping centre.The growth in population in the inner city increased the pressure for affordablehousing there. The quality of life declined and the cost of living rose compared to life inthe suburbs. In the suburbs, a protected, family-oriented lifestyle developed. The middleclass had the money to purchase and the cars in which to move, and suburban lifequickly became the dream for thousands of Americans:A home in the country-side, a fence surrounding the lawn, acar in the garage and a family waiting at the gate for Daddyto come home at the end of the day's work (Sussman, 1981,p.64).14Retail business's response to this explosion in the suburban expansion was theplanned shopping centre--accessible by automobile. It truly was the place for thecelebration of suburban life. Designed especially around the automobile, shoppingcentres, made the best of cheap land prices.In order for a shopping centre developer to obtain financial support for adevelopment project, the developer had to provide prospective lenders, such as banks,with some degree of security. That security took the form of pre-leased space in aproposed development. The securing of "anchor tenants" of well known departmentstores or supermarket chains created a "magnet" for prospective shoppers, and so wouldbenefit the rest of the smaller tenants in the project (Ircha, 1982, p.10). In the U.S., SearsDepartment store decided to favour suburban locations since the 1920's. In Vancouver,Woodwards department store took the lead by locating at the Park Royal and OakridgeCentre in the 1950's. However, in the beginning, many of the well established departmentstores were reluctant to make such a drastic move to a new suburban shopping centre.Many still believed that department stores needed traditional sidewalk frontage to drawpedestrian customers into the stores. Moving away from the busy downtown to thedistant suburbs, and replacing sidewalks with large parking lots was considered novel andtoo risky. In addition, it was felt that department stores located in the suburbs wouldjeopardize the store's major downtown business. Moreover, in some cases, thedevelopment of the shopping centre was to be finished before the residential part of thedevelopment was concluded. This made the investment even more risky. But eventually,15rising costs and increased numbers of smaller competitors forced the department storesinto the shopping centres (Statistics Canada, 1973).The first shopping centres were truly pioneer projects. The suburban marketseemed unlimited to developers. At the same time, competition among the centresthemselves, as well as among other retailers in the area, was insignificant. It was underthese conditions that the shopping centre industries's basic guidelines and knowledgewere developed; be everything for everyone, because that is what the market demanded.In the mid to late 1970's the concept of the shopping centre had to be rethought.The oil crisis in 1973 increased transportation costs. At the same time, inflation and awidespread recession reduced consumer spending power. Nevertheless, the shoppingcentre industry continued a rapid expansion. Competition began to enter a more intensivestage following 1970. In addition, many Canadian cities went through revitalizationprograms (For example Vancouver, Ley, 1980). This had a tendency of strengthening thedowntown position in the retail market. These events forced the shopping centre industryto realize that there was a limit to its growth. New strategies were therefore conceived.Rather than build more centres, many shopping centre development companies decidedafter 1970's to concentrate on expanding or renovating existing centres. More attentionwas given to common areas and design. A greater effort was made to transformsuburban centres into community centres. Some shopping centres changed their tenantmix in an effort to update their supply of merchandise. During these years it becamepopular to enclose shopping centres by covering the open centres built in the 1960's witha roof. Smaller towns, which before the 70's were overlooked, became a new target16market for shopping centre developers. Other developers found it profitable to invest inother countries (Frieden & Sagalyn, 1989).The keyword for the 1980's was diversity. This decade was characterized byincreasing competition from other retail operations. The same guidelines and developmentstrategies had been used in a large number of shopping centres spread throughout NorthAmerica. But in the 1980's customers tired of the sameness and lack of diversity (Brown,1992b, Kowinski, 1985). This forced the shopping centre industry to rethink and changeits marketing strategy again. Specialized shopping centres such as warehouse centres(Milian, 1992; Mitchell, 1992) with several "category killers" (Chain Store Executive, 1992;Miller, 1992; Forbes, 1992a) located within, emerged. Category killers specialize in asingle type of merchandise, killing the category in the old department-type store. Thesenew centres provide consumers with both specialization and diverse tenant mix.Another change in the 80's was the major rebuilding and redesign of existing malls.Some malls created shopping "streets" which were decorated according to a particulartheme, for example, a European marketplace or a tropical village. Typically, the sense ofplace was taken out of context and used simply as a marketing tool. Some centresintroduced customers to a shopping environment built as much to entertain and amusepeople as to house retail tenants. The famous West Edmonton Mall (WEM) is such anexample (Simmons, 1991; Jones, 1991; Hopkins, 1991; Jackson, 1991; Smith, 1991).There, the shopping centre became a popular tourist attraction with the dual function ofproviding entertainment as well as consumer outlets.172.2 SHOPPING CENTRE DEVELOPMENT IN CANADA. Statistics Canada (1976 & 1989a & 1992a) shows that there were only fourshopping centres in Canada in 1951. Five years later, however, there were fifteen timesthat number. By 1961, similar statistics indicate that there were 281 shopping centres, andby 1972 the number had grown to 599. Fourteen years later the number of shoppingcentres had grown by 88% to 1128. In terms of the share in the total national non-automotive retail trade', shopping centres represented 1.8% of the total ($ 233,800,000) -retail sales in 1956, 6.2% by 1961 and 17.6% by 1973 (Table 1). The most recent statisticsavailable for Canada indicate that in 1988 there were 1,224 shopping centres.2.3 REGIONAL SHOPPING CENTRES AND THEIR RELATION TO THE MODERNPOST-MODERN MOVEMENT.2.3.1 INTRODUCTIONIn order to understand the numbers, design, layout and location of shoppingcentres, one must have an understanding of a variety of historical movements startingwith the Industrial Revolution. This period marked humans' effort to profoundly andsignificantly control the environment, an effort that became ingrained in Western economicactivities and indeed in Western people's very existence.7 Non-automotive retail trade is defined by Statistics Canada as: "total retail tradeexcluding trades rarely found in shopping centres, e.g., general stores, motor vehicledealers, fuel dealers, lumber and building material trades (and used car dealers, in 1972and 1973 only)" (Statistics Canada, 1976).18TABLE 1^THE CANADIAN SHOPPING CENTRE INDUSTRY.YEAR NO.OF SHOPPINGCENTRESRETAIL SALES INSHOPPING CENTRES$ '000,000RETAIL SALES IN SH.CENTRES AS % OFTOTAL RETAIL TRADE19511956196119661972197319864642814205996641128--233.8975.92,100.05,466.76,736.5---- RARELY FOUND IN SHOPPINGTOTAL RETAIL TRADE NUMBERS.FUEL DEALERS, LUMBER ANDDEALERS, IN 1972 AND 1943SOURCE:STATISTICS CANADA.^1976.CATALOGUE NO.^63-527.STATISTICS CANADA.^1989.CATALOGUE NO.63-527.STATISTICS CANADA.^1992.CATALOGUE NO. 63-224.CENTRES ARE REMOVED FROM THEE.G. GENERAL STORES, MOTOR VEHICLE,BUILDING MATERIAL TRADES (AND USED CARONLY.)SHOPPING CENTRES IN CANADA 1951-1973.SHOPPING CENTRES IN CANADA 1986.MARKET RESEARCH HANDBOOK.In the following section I will look at how the Industrial Revolution and modernisminfluenced human perception and interaction with the environment. I will start out by brieflyillustrating some of the significant changes that occurred in society during the industrialrevolution, and in particular note its effect later on modern society. I will illustrate theinfluence this change in perception had on such areas as art, architecture, urban planningas well as urban geography. I will examine how the development of large shopping centre19complexes applied modern architectural, planning and geographical methods to theirbuildings. I will also describe how shopping centres were perceived in the context ofurban planning. Lastly, I will examine regional shopping centres present position in thepost-modern era from a planning, architectural and urban geographic perspective.Vancouver will be used as an illustration.2.3.2 INDUSTRIAL REVOLUTIONThe turn of the 19th century saw a dramatic change in technology, which in turnprofoundly changed the economy. F.W Taylor introduced scientific management theoryinto production methods in order to make it more efficient. His idea was picked up byHenry Ford in 1913 and applied to his assembly line production methods of the ModelT (Relph, 1987, p.93-). An increasing number of people became employed in mass-producing industries, which again expanded and created new markets for otherindustries.Mass production and mass consumption went hand in hand. The concept of massconsumption influenced human's perception and participation in the modern landscape(Relph, 1981, p. 63) The need for new stores, new residential areas and new roadschanged the landscape. At the same time, the development of the modern landscaperequired control and regulation. Landscape became a commodity which could be boughtand sold as well as designed and regulated, like any other mass produced product. Thelandscape became the media in which architects, urban planners and geographers could20visually and theoretically demonstrate their conception of a modern landscape (Relph,1987, p.49-).2.3.3 ARCHITECTURE, ART AND REGIONAL SHOPPING CENTRESIn the post-industrial age the Bauhaus School was one of the forerunners inexpressing modernism through art and design. The school was established in Weimar,Germany in 1919 (Banham, 1967). However, it was not until the 30's and the 40's that theschool became dominant in international architecture. Walter Gropius was one of thefounders and the first leader of the school and expressed his view on modern architectureas:Architecture during the last few generations has becomeweakly sentimental, aesthetic and decorative...this kind ofarchitecture we disown. We aim to create a clear, organicarchitecture whose inner logic will be radiant and naked,unencumbered by lying facings and trickery; we want anarchitecture adapted to our world of machines, radios and fastcars...with the increasing strength and solidity of the newmaterials--steel, concrete, glass--and with the new audacity ofengineering, the ponderousness of the old methods ofbuilding is giving away to a new lightness and airiness(Banham, 1967, p.282).Frank Lloyd Wright was an American architect whose philosophy of form anddesign was of the same character as the one developed by the Bauhaus School. LloydWright designed buildings and cities specifically around the automobile. The theoreticalcity he created in the early 1920's was named the Broad Acre City. The Broad Acre Citywas a low density, decentralized city with low-rise development (Relph, 1987, p.98-).21The first generation of shopping centres were built in the 1930's. They were onestorey shopping plazas with parking along the store fronts. The architectural design ofthese centres was truly influenced by the modern architectural approach to design. Thebuilding material that was used was explored in its natural character. The building's formwas honest in the sense that it signified it's function. The larger plazas that providedpedestrian area were sometimes decorated with steel sculptures also inspired by modernsociety. The first shopping centres built by Victor Gruen, a major shopping centrearchitect of the 1950's, exemplify this approach.It was not until after the Second World War that the number of shopping centresincreased significantly. In the early 1970's airconditioning and lighting technology madeit possible to turn the shopping centres inwards, thereby producing shopping malls. Atthe same time modern architectural style had established itself and had developednumerous directions. Some late modern architectural styles became even simpler andmore functionalistic than before, while other architects developed a more complex style.The many regional malls that developed at this time adapted one particular versionof the late modern functionalistic architectural design. Re1ph calls it the "blank box" style.According to Relph..."a perfect blank box consist of a flat roof on four walls punctuatedonly by doorways." (Relph, 1987).This extreme functionalistic architecture was picked up by leading shopping centredevelopers at the time. It quickly became the universal recipe applied to the majority ofthe new malls developed in North American. This building structure offered severalbeneficial elements to the retail industry. The design made economical sense because of22its relatively cheap construction costs. The blank walls provided retailers with shelf placeand avoided problems with window displays. Even more importantly, it gave the shoppingcentre developer a unique chance to internalize the mall, and enhance corporate controlof the retail environment. It was commonly believed that the sealed boxes were necessaryto separate the retail environment from the world outside. Without the blank walls theartificial retail environment would have been contaminated by the external environment(Whyte, 1988, p.222-). The blank walls also gave the building a universal, homogenouslook. They do not change character depending on where they are located. The "BlankBox" style gave the malls a clean and non-biased character which allowed them to beplaced in any and every North American suburban community. The building structure anddesign serves it's function as a place for protected mass consumption (Procter, 1987).2.3.4 URBAN PLANNING AND REGIONAL SHOPPING CENTRESThe first modernized urban planning practise in Europe and North America cameat around turn of the 19th century, and was developed from various design professionslike architecture, landscape design and civil engineering (Ernest, 1986). The City Beautifulmovement developed at this time. Daniel Burnham's work was influential to the early partof the City Beautiful movement. The very idea behind the City Beautiful philosophy wasto create a functional North American city inspired by the beauty of old European cities(Relph, 1987).While the City Beautiful movement influenced North American cities, the GardenCity theory was an important influence in European planning practice. Ebenezer Howard23in England, developed the Garden City idea in the late 1890's. His Garden City was analternative city, a solution to the 19th century city's problems rather than a method torevitalize the city itself. According to Howard, the Garden City should be located outsidethe existing city. It should also be isolated from the original city by making it a self-sufficient unit. The city should provide it's inhabitants with residential, recreational, andcommercial components (Jacobs, 1961). The Garden City's principles left a lastinginfluence on subsequent urban planners. The theory was viewed as the appropriateplanning tool that could control and direct the urbanization process (Knox, 1982, p.50-).Several approaches to city design and planning emerged as an alternative or followup of the City Beautiful and Garden City movement. For example, the idea of master plansdeveloped from the off-shoots of these two planning approaches. Wright's Broadacre Cityand Le Corbusier's Radiant city are other examples (Relph, 1987).After the Second World War only modified and simplified versions of these theorieswere applied to North American planning practise. Cities had been reworked andtransformed significantly. They had also become more complex than ever before. Theincreased need for good quality housing, efficient road networks and convenient shoppingfacilities are some of but a few new pressures with which planners of the time wereconfronted. Rational and efficient planning techniques that could control the developmentof the modern landscape were therefore required. General zoning by-laws and buildingcontrol was developed according to the scientific management methods. For example,health studies were used to determine building density and the amount of light that shouldbe permitted in a residential development (Relph, 1981, p.84). In order to keep planning24practice simple and efficient, urban planners, developers and government were thereforeforced to apply only limited parts of the theories referred to above. The modern urbanlandscape had to be as efficient as the factory machines at the time, and that meant thatthe planning tools had to be as efficient as Henry Ford's assembly line (Relph, 1987).According to Edward Relph, shopping centres are the result of peoples need tocontrol and manage the modern landscape (Relph, 1981, p.101-). Their relative locationin the modern landscape is arrived at through zoning by-laws which are justifiedaccording to scientific urban economic theories (Re1ph, 1981, p.63-; Mckeever, 1973).Urban planners took these ideas to heart and used them extensively in the regulation andcontrol of the modern landscape. These models provided urban planners with valuableguidelines and objectives which inspired them in their work:It has been an almost universal custom among metropolitanplanning authorities to spatially analyze existing retailingstructures and to organise the future pattern of domesticshopping activities within the framework of Central Placetheory and a regular hierarchical spacing of centres(Edgington, 1980, p.36).It is from this planning practise that the regional shopping centre concept found it's placein the modern landscape.As modern society became more complex and diverse, the need for urbanplanning and control increased. In order to handle this task, urban planners developedseveral planning tools which would help them in their work. Zoning-bylaws, formal landuse regulations and public development projects were some of these implementationtools. What was useful with these tools was the planners ability to single out areas for25particular land uses. The result of this planning practise can be seen today in thesegregated land use landscape. Single land use regulations encouraged residential,commercial, industrial, as well as educational developments to be located in areas zonedfor this particular type of land use. Naturally this planning practice affected thedevelopment of regional shopping centres. Designated commercial areas were singledout in the modern landscape (Ircha, 1982). Through applications for building permits,planners were able, to some degree, to regulate the type and extent of the commercialactivity intended for each area. However, at the same time, this planning practise wasencouraged by large regional shopping centre developments. Because of the significantamount of capital that went into such projects, plans that could help developers minimizethe risk and uncertainty of the project were welcomed. Through zoning bylaws and landuse regulations, developers were able to predict the potential competitive commercialmarket in an area. They were also able to estimate the current market potential as wellas make some predictions for the future. The shopping centre's economic successdepended on this monopolistic and controlled market situation.However, single use planning regulations separated land users that could notfunction alone. In some instances different land use areas were located close to eachother. However, when the urbanization process started to move out from the city, thedistances also became greater. For example, commercial areas in the suburbs becameheavily dependant on imported traffic from neighbouring residential areas. Single land useregulations created a traffic flow, thus making traffic regulation another important factorin modern planning practice.26A great number of automobiles became available and more affordable to a largepart of the population after the Second World War. This had a tremendous impact onurban planning practice. Planners were forced to include the car in every aspect of theurban landscape. The road network improved in quality and in its capacity. But even moreimportantly, it expanded to new areas where the suburban communities were developing.Regional shopping centres benefited from the modern approach to urban planningin three different ways. First, the extensive road network that developed at the time madeit possible for the shopping centres to draw large numbers of people to their locations.Secondly, the new road network not only improved the market potential, it also offeredoptimal location opportunities. Regional shopping centres made use of busy intersectionsand major highway locations in order to benefit from passing traffic. Thirdly, the extensiveroad network accommodated the suburban communities' growth. This created newmarkets from which new or existing shopping centres could benefit.2.3.5 URBAN GEOGRAPHY AND REGIONAL SHOPPING CENTRESThe geographical approach to modern landscape was based upon two majortheories which were developed at around the turn of century. Neo-classical, economicurban land use models as well as the influence of urban ecology both had a significantimpact on modern urban geography.27Already in 1826 Johann Heinrich von Thunen from Germany had created thefoundation for what later became know as the neo-classical economic land use theory. 8In 1964 William Alonso picked up Von Thunen's ideas and applied it to the study of urbangeography.9 The German geographer Walter Christaller had a slightly different theoryinvolving a hexagonal urban land use model. Through this model he was able to orderthe landscape into a hierarchical system. His Central Place Theory (Zentrale Orte Modell)has since been used as a major influential source for further urban geographic work inNorth America (Hagget, 1983, p.463-). The neo-classical economic land use models arebased on some primary assumptions, like uniform transportation costs and rational,economic human behaviour. The latter assumption was also applied in urban ecology,which was the second influential source on urban geography.The urban ecology theories had their origin in the sociology department at theUniversity of Chicago. The theories borrowed ideas from social Darwinism and appliedthem to political, social and economic aspects of human society (Knox, 1982). E.WBurgess' theoretical approach in applying a concentric zone model to Chicago is but oneexample of the theories that developed from this school. Burgess divided the city into five8 Johann Heinrich von Thunen (1783-1850) wrote "Der Isolierte Staat" in 1826. Byobserving the activities on his own estate he was able to develop a scientificunderstanding of rural land use. He structured his observations into concentric land usecircles where transport-intensive production was located closer to the centre than theproduction of cheaper transportation products. (Source: Haggett, 1983, p. 526-).9 William Alonso, a American regional scientist developed an urban land use modelbased on the ideas behind Von Thunen's work. The model is based upon the bid-rentcurve which shows the rent people are willing to pay for increased distance form the citycentre. According to the bid-rent curve, residential, industrial and retail activities areordered in the urban space. (Alonso, 1964).28zones. The location of different groups in the zones was a reflection of their economiccompetitive power.The increased use of neo-classical economic land use models and human ecologyin human geography signified a break with earlier idiographic oriented geography.Geographers claimed that geography, as an academic discipline, had its philosophicalapproach founded in logical positivism. Geographers should therefore deal withnomothetic scientific method that operates with either empirical verified data or logic andmathematical data proven by definitions. In order to make spatial organization laws, itbecame important to look for generalities and quantitative data that would fit the models.At the same time, improved and accessible computer systems allowed for manoeuvrablequantitative data. Although these models were later modified in order to provide a moreflexible land use model, the basic principles of the bid rent curve did not change (Knox,1982).The geographical land use and location theories that emerged in the 60's and 70'swere a reflection of academics' views on the modern landscape. They involved efficiencyand suggested economic optimality. Modern society's commercial activities, and in thiscase retailing, found its foundation in Christaller's Central Place theory. The metropolitanretail system that developed after the Second World War was in many cities regulated andcontrolled according to The Central Place Theory.Traditional economic practices created the foundation for the central place theory.According to the theory it was the land value that would influence the location pattern ofvarious activities. The bid-rent curve was therefore a convenient tool to use in order to29find the optimal location for retail activity. Through studies of retailers bid-rent-curves retailactivities could be organized into a hierarchical system. Depending on the goods andservices that a retailer was selling, the retailer's threshold could be estimated. If theretailer was highly specialized, its threshold would be high. On the basis of thisinformation retailers could be placed into the hierarchal retail system. The same methodwas used to place shopping centres into a hierarchical retail system. According to thecentre's tenant make-up and its general threshold, it could be categorized as either aneighbourhood, community or regional shopping centre. This could be done bymeasuring the centres floor space and studying the goods and services that the centres'tenants offer. Regional shopping centres were, according to the hierarchical retail system,considered a high order retail facility. These centres offered goods and services thatrequired a relatively large market, and were therefore located in a central location(Edgington, 1980).By using the bid-rent curve and the hierarchial retail categorizing system, it wasrelatively easy for geographers to organize shopping centres in the landscape. Throughthe theoretical models geographers were able to situate shopping centres in an optimallocation where supply and demand would be equal (Bernardo, 1989, p.22-).2.3.6 THE POST-MODERN PERIODWhat characterizes the post modern period, in this context, is its complexity.Geographers, urban planners and architects have created a post-modern landscape onthe basis of new theories and models. Feelings, beauty and traditional symbols as well30as attention to the specific area's unique qualities and historical value are now consideredin current planning practise (Ley, 1980). Order was once considered necessary for plansto flow smoothly through the various bureaucratic systems. The process has becomeincreasingly politicized as interest groups advance their cause.Geographers no longer accept this positivistic approach to the urban space. Thevery assumptions of location theories are now being questioned. The systematichierarchical retailing system is now in the state of chaos with new retailers and newproducts entering the market. Today, a larger proportion of non-physical products, thatis services, knowledge and ideas, have entered the market. Advanced technology liketelefaxes, satellite communication and telecommunication have made the productionprocess more flexible in terms of time and space.A large proportion of retailers offer new merchandise combinations. At the sametime, shopping centres are hosting new institutions and activities. As well, the productionand distribution system, on which the location theories were based, is changing. In someinstances the traditional linkage between producers and distributors is eliminated by theintroduction of factory outlets in the retail sector (Bates, 1989).The retail sector is still regulated and controlled through modern planning practices.However, there are few sectors of the economy that are experiencing a more rapid andfundamental change than the retail industry. This has forced planners to change. It is nolonger acceptable to base major plans only on scientific explanations or economic landuse models. Although, they still play an important role, more attention is given to publicparticipation. Universal plans are no longer applied to the environment. Planners are now31aware that an area's special characteristics and needs must also be accounted for in theplanning process. Single use developments are still grounded in the existing zoningbylaws. However, multi-use developments are now being given more attention. From anarchitectural point of view, the post-modern period is characterized by the increased needfor an urban design which signifies individualism more than mass consumerism. Post-modern architecture today is more concerned with applying the individual user's identityto the built environment. There is also a need for urban design to symbolize people'simage of themselves and their surroundings. While modern architecture sought designswhich signified a clean break with the past, one direction within the post-modernmovement uses elements from historic times. Historic symbols accommodate peoplesneed to reunite with their past (Langdon, 1988).Regional shopping centres are a true product of the modern society. Althoughthere has been some architectural adjustment, their location and function within ourcommunities is still of a modern character (Relph, 1981 & 1987). Shopping centres havealso made some effort in adjusting to demographic and new corporate competition.However, their problems are found at a deeper level. Shopping centres are still, to a highdegree, operating and expanding according to the modern approach to the builtenvironment. Their architectural design and geographical position within post-modernsociety will wind-up challenging their position within the retail sector. Regional shoppingcentres can no longer be treated as a separate segment in a modern landscape. As theurbanization process proceeds, they will be forced to become more integrated in ourcommunities (Gunner, 1990; Dennis, 1990).322.3.7 VANCOUVER FROM THE MODERN TO THE POST -MODERN PERIODAccording to Walter Hardwick, Vancouver has gone through somewhat the sameplanning development process as described above (Hardwick, 1974). In the period beforethe 1920's, only private and corporate interests influenced the urban developmentprocess. However, in the late 1920's a professional and academic based planningpractice started to emerge. The American born Harland Bartholomew was hired by thecity to make the first civic plan for the Vancouver area. 1° At the time, Bartholomew hadalready been involved in many North American city plans. His plans were based upon theleading economic land use models and theories. He was also heavily influenced andinspired by the Chicago School's urban ecology ideas. The result was a sectoral,segregated landscape which was in accordance with logic and the scientific ideas andtheories of the time.In the late 1930's Vancouver's municipal government and planning practicesbecame more professionalised. As was the case before, politicians were partisan to theirelectoral areas, but now, in addition, they relied heavily upon the professional andacademic recommendations and guidelines now being provided to them. By basing theirdecisions on scientific knowledge, it was commonly believed that they were acting in thebest interests of the people as a whole. As a result an academic elite found its niche inthe municipal governmental level. By the 1960's the professional planning practice hada dominant influence on the modern landscape.10 This plan was adopted in 1931 (Hardwick, 1974).33In the late 1960's, several politicians became aware of the many drawbacks thesepractises. Their desire to represent their community's special needs was not properlyconsidered in the planning practise of the day. The assumptions of economic man andrational behaviour did not apply to the emerging world. People were not behaving onlyon the basis of economic factors but also in terms of their emotions, values and lifestyles.The public debate over the development of Arbutus Village Shopping centre inVancouver is an example of the professional planning in conflict with rising publicawareness. From an urban planning point of view, the vacant land near Arbutus Streetand West King Edward Avenue was suited for a large retail development. According toeconomic land use models, the market for such development was large enough tosupport a regional shopping centre. According to the economic models, there was a needfor a high order shopping facility in the area. However, the citizens of the area did notthink so. When the suggested plan became known to the public, a strong oppositionmovement emerged among the residents of the neighbourhood. The result was thebuilding of a smaller shopping centre which better suited the residents of theneighbourhood (Hardwick, 1974).Several similar events occurred throughout the sixties. The public became moreeducated and aware of the planning process in the Vancouver area (Ley, 1980). In orderto prevent problems in the future, politicians realized the importance of public participationin planning. As a result, various governmental institutions were established during thistime. In 1967, the Department for Social Planning was established to obtain communityknowledge and bring this information to the Board of Administration. In the same year the34GVRD was established. In the years to follow the GVRD coordinated inter-municipalaffairs. However, it was not until 1973, when Harry Lash" instituted the "Livable Region"plan that, public participation increased in the GVRD's regional planning process.Harry Lash became the Director of Planning for the Greater Vancouver RegionalDistrict in 1969 (Lash, 1976).35CHAPTER 3CHANGING SHOPPING CENTRE CHARACTERISTICS:THE SIX CASE STUDIES IN VANCOUVER To illustrate the changes in the shopping centre industry, I have chosen sixVancouver area shopping centres. I will investigate their similarities and differencesthrough an examination of general characteristics; of location and accessibility; layout anddesign; vacancy rates; the presence of chain stores; and tenant mix.The Canadian Directory of Shopping Centres (1990) was used to select sixrepresentative regional shopping centre in the Vancouver CMA. They were chosenbecause they all fell into Statistics Canada's, Monday Report on Retailers' and ULI'scategory, "Regional Shopping Centre" (section 1.2).3.1 A GENERAL COMPARISON OF THE SIX CASE STUDIESYEAR OF OPENING The shopping centres were all opened within a 14 year time period.The first of the six shopping centres to open was Oakridge Centre in 1959. Surrey PlaceMall opened thirteen years later in 1973. This was a significant time period when manyregional shopping centres opened across the whole of Canada (Table 2). Thus accordingto Statistics Canada (1976), only 15 regional shopping centres were registered in 1959.Fourteen years later, the number had increased to 101 such centres. Despite the thirteenTABLE 2^THE SIX CASE STUDIES GENERAL CHARACTERISTICS,^1990CENTRE'SNAMEOWNER'S NAMEAND ADDRESSYEAROPENEDGLRA^NUMBER OFTENANTS *NUMBER OFANCHOR TENANTSTOTAL ANCHORSQ.FTNO.OFPARKINGBRENTWOOD MALLCAPILANO MALLLOUGHEED MALLOAKRIDGE CENTRERICHMOND CENTRESURREY PLACE MALLTRILEA CENTRES INC.CAMBRIDGE SHOPPINGCENTRES LTD.TRILEA CENTRE INC.CAMBRIDGE SHOPPINGCENTRES LTD.CONFEDERATION LIFEINSURANCE CO.^ANDMARKBOROUGH PROPERTIESINC.^(NORTH MALL)MARKBOROUGH PROPERTIESINC.^AND CAL INVEST-MENTS LTD.196119671969195919651972500,000404,316596,000572,550542,434621,000107111183157159126224254270,594245,404328,350318,599351,111345,0002,2202,2013,2003,3002,8282,400NOTE:RICHMOND CENTRE^(NORTHTOGETHER IN 1986.* 1991 NUMBERSSOURCE:MONDAY REPORT ONAND AUTHORS' FIELDMALL)^WAS^FOUNDED^IN^1973.^BOTH^CENTRES^MERGEDRETAILERS.^1990.^CANADIAN^DIRECTORY OF SHOPPING CENTRES,STUDIES.37year difference between the youngest and oldest shopping centre in this study, they allhave lasted at least twenty years and have all survived periods of economic change in theseventies and eighties together. This should entail a similar experience with the retailmarket. However, some of them have changed owners during this time period.GROSS LEASABLE RETAIL AREA (GLRA) The shopping centres' gross leasable retailarea, or GLRA, varies from 404,316 square feet (Capilano Mall), to 623,000 square feet(Surrey Place Mall). This is a fairly large variation in leasable area, which in turns mayinfluence the shopping centres' tenant structure as well as internal business policy. Butbecause all the centres meet ULI's definition in terms of size it can be assumed that theycan cater to a regional market (section 1.1).ANCHOR TENANTS Despite differences in the centre's GLRA, the shopping centreanchor tenants occupy approximately the same percentage of GLRA for all six shoppingcentres. Thus these "anchors" occupy between 54% and 64% of the total space. Thenumber of anchors located in the six malls vary from two to five. Therefore, the centresall have, to a certain degree, the same percentage of the non-anchor GLRA that has tobe leased out to other tenants.OWNERSHIP Today, all of the shopping centres are owned (or partly owned) by Toronto-based firms, and only Surrey Place Mall is partly owned by B.C. and Ontario interests.Although the shopping centres are owned and managed by different companies, the fact38that the owners all are based in Ontario no doubt influences the management of thecentres.PARKING The shopping centres have nearly the same amount of parking places perstore unit. There are approximately 20 parking spots for each store.NUMBER OF TENANTS The number of tenants located in each shopping centre in 1991varies from 107 at Brentwood Mall to 183 at Lougheed Mall. This is an apparently widevariation in number of tenants between centres. However, when comparing number oftenants to the GLRA, one finds that the centre with the highest GLRA does not necessarilyhave the highest number of tenants. Neither does the centre with the lowest GLRA havethe smallest number of tenants. There is therefore no proportional relationship betweennumber of tenants and the centres GLRA.According to the findings above, the six regional shopping centres have someapparent similarities. They are all at least twenty years old, and are owned, for the mostpart, by Ontario based companies (Table 2). Each centre also has relatively the samepercentage of space leased to anchor tenants, and the same number of parking spacesavailable per store unit. In the following sections other similarities will be described.393.2 LOCATION AND ACCESSIBILITYThe regional shopping centres' location in relation to major road networks,consumer markets, competitors and town centres have a profound influence on theirbusiness.After the Second World War the automobile became an increasingly important partof urban life in Vancouver. One effect of this growth in the number of cars was on the wayNorth Americans shopped. Shopping centres emerged along with this change in lifestyle.For this reason shopping centres have always been heavily reliant on transportation androad systems for their customers. Their relative location to major highways and otherarterial routes, determines, to a high degree, their success (Gruen & Smith, 1960, p.30;Jones, 1969, p.51) (Map 1, see Appendix D).As the name "regional shopping centre" indicates these centres are of such sizethat they depend on consumers from the surrounding region as compared to aneighbourhood shopping centre, for example (see definition in section 1.1). It is practicallyimpossible to create a trade area boundary around these shopping centres which signifiesa limit beyond which customers will not travel. Today's consumers are highly mobilethroughout a metropolitan area. Nevertheless, it is still worth while examining eachshopping centre's surrounding area. Table 3 shows the 15 municipalities in the VancouverCMA. The municipalities' trade areas as well as population levels will be used todetermine the six regional shopping centres' position in the market.40TABLE 3^GREATER VANCOUVER: COMMERCIAL FLOOR SPACE AS A FUNCTION OFPOPULATION,^1990.MUNICIPALITY RETAIL SHOP. OTHER RETAIL TOTAL RETAIL POPULATIONCENTRE SQ.FT FLOOR SPACE FLOOR SPACEA) B) C)BURNABY 2,322,718 3,265,165 5,587,883 156,633CITY OF N.VANCOUVER 568,082 1,603,563 2,171,645 39,535RICHMOND 1,903,716 2,988,806 4,892,522 126,748SURREY 3,005,829 4,413,393 7,419,222 232,555VANCOUVER/UEL 2,097,046 25,493,533 27,590,579 465,067COQUITLAM 1,309,239 1,648,550 2,957,789 84,548DELTA 1,303,624 1,094,233 2,397,857 86,214LANGLEY CITY 416,244 1,085,612 1,501,856 18,382LANGLEY TOWNSHIP 412,701 980,209 1,392,910 64,039NEW WESTMINSTER 558,470 2,133,145 2,691,615 44,107DISTR.OF N.VANCOUVER 440,338 1,845,344 2,285,682 75,613PORT COQUITLAM 259,147 702,528 961,675 53,985PORT MOODY 108,555 433,903 542,458 17,185WEST VANCOUVER 543,687 820,570 1,364,257 39,615WHITE ROCK 40,747 434,824 475,571 15,973MUNICIPALITY SHOP.CENTRE % RANK SHOP.CENTRE RANKSQ.FT OF TOTAL SQ.FT.PER.CAPITALRETAIL SQ.FT.BURNABY 42.0 4 15.0 5CITY OF N.VANCOUVER 26.0 10 14.0 6RICHMOND 39.0 6 15.0 4SURREY 41.0 3 13.0 8VANCOUVER/UEL 8.0 15 5.0 14COQUITLAM 44.0 2 16.0 2DELTA 54.0 1 15.0 3LANGLEY CITY 28.0 8 23.0 1LANGLEY TOWNSHIP 30.0 7 6.0 11NEW WESTMINSTER 20.0 11 12.0 9DISTR.OF N.VANCOUVER 18.0 13 5.0 13PORT COQUITLAM 27.0 9 7.0 10PORT MOODY 20.0 12 6.0 12WEST VANCOUVER 40.0 5 14.0 7WHITE ROCK 9.0 14 3.0 15NOTE: THE SQ.FT LISTED IN THE TABLE INCLUDE COMPLETED RETAIL DEV. AS WELL ASDEV. PROPOSED OR UNDER CONSTRUCTION. A)^INCLUDE RETAIL DEV. OF 30,000+SQ.FT. B)^INCLUDES RETAIL SH. CENTRES AND OTHER RETAIL FLOOR SPACE. C)THE POPULATION DATA ARE BASED ON ESTIMATED NUMBERS FOR 1991.(1990 DATANOT AVAILABLE.)SOURCE: GVRD.^1991. GREATER VANCOUVER KEY FACTS.41The regional shopping centres relative location to major town centres will alsoinfluence their business. Vancouver has experienced a significant increase in itspopulation in the last 10 years. In 1981 the Vancouver CMA had a total of 1,268,197residents. In 1991 the population was estimated at 1,574,971 residents. This is anincrease of more than 24% over the levels of the previous ten years (GVRD, 1991). Suchan increase has caused the growth of the city outward to the east, into the Fraser Valley,and west, to some extent to the Gulf Islands. The GVRD has had a policy for over adecade to decrease the pressure on the downtown Vancouver area, and createalternative town centres. The GVRD expresses this point as follows,We can no longer afford to pursue the 1960's concept of asingle business core surrounded by predominantly residentialsuburbs all served primarily by the private automobile. Thisconcept lead to fragmentation of community life, excessivedependence on the automobile and the waste of valuable land(GVRD, 1990b, p.19).These town centres are striving for more regional self-sufficiency, in work andresidence. The town centres that are listed here are Lonsdale in North-Vancouver,Richmond Centre in Richmond, Metrotown in Burnaby, Downtown New-Westminster,Guildford in Surrey, and Coquitlam along the Lougheed Highway (GVRD, 1990b) (Map2). Town centres were not seen in the 1975 plan to incorporate shopping centres.However, these shopping centres' relative location to these town centres will no doubtinfluence their business. (For more information on town centres see Artibise & Davis& Hutton, 1990.)42Only two of the six shopping centres examined here (Richmond Centre and SurreyPlace Mall) are located close enough to a town centre that they can benefit directly fromthe activity the centre generates. Capilano Mall is located in a disadvantaged position inthat it is a kilometre from a town centre, but still somewhat isolated. The rest of thecentres examined in this study, are located far enough away from the town centres thatthey have an opportunity to build up their own centre function (Map 2).3.3 THE SHOPPING CENTRES' LAYOUT AND DESIGN The shopping centre's layout and design have been carefully planned to meetdevelopers marketing strategy. Both play an important part in the creation of a shoppingcentre's image, and are therefore important in the shopping centre's economic success.Different developers choose different methods to achieve the optimal design and layout,but there are some common guidelines that many shopping centre developers appearsto be following. These guidelines allow the developers, managers and tenants to achievethe highest possible profit from the centre, that is, improve the centre's potential earningcapacity (McKeever, 1982; Jacobs, 1984, p.30).However, not all developers have had maximum profits as their primary goal. VictorGruen, a pioneer in shopping centre development and design, was very active in thedevelopment of the shopping centres in the USA from the 1950's to the 1970's. Gruen(Gruen & Smith, 1960) found the development of free merchandising very aggressive, andsaw it was necessary to regulate and control it. He also disliked the hostile and congested43environments which the automobile was creating. The result of these judgements was anidealistic shopping centre model (Snyder, 1992). The shopping centres need anenvironment that could fulfil more than the basic needs of a suburban shopper. Hewanted to plan the shopping centre in such way that it would:...create additional attractions for shoppers by meeting otherneeds which are inherent in the psychological climatepeculiar to suburbia. By affording opportunities for social lifeand recreation in a protected pedestrian environment, byincorporating civic and educational facilities, shopping centrescan fill an exciting void. They can provide the needed placeand opportunity for participation in modern community life thatthe ancient Greek Agora, the Medieval Market Place and ourown Town Squares provided in the past (Gruen & Smith,1960, p.24).He created several shopping centres according to this policy. This strategy did notalways provide the developer with maximum profit per square foot. Developers andshopping centres today seem to have abandoned Gruen's approach. They createenvironments with little thought other than to create a space for the buying and selling ofgoods. The layout of today's malls, as well as their design, is often very standardized. Asmy case studies will show, it is easy to see that certain plans have been used over andover again.3.3.1 THE SHOPPING CENTRES' LAYOUT"The shopping centre is one of the few new building typeswhich represent a response to the emergence of theautomobile as a means of mass transportation (Gruen &Smith, 1960, p.140).44There are two important goals that a shopping centre's layout should try toachieve. The first is to make parking and entrances conveniently located for customers.The second task is to channel the potential customers through the centre so as tomaximize pedestrian traffic, and therefore, potential sales (Jones, 1969).The planning of a shopping centre's layout is first determined by the number ofanchors that are going to be located in the centre. Their location will create a "pull effect"between them and it is therefore best that they are located on different sides of the centre(Jones, 1969). The pull effect creates pedestrian traffic from one anchor to another, andthe shops located between them will, in theory, be able to benefit from this traffic flow.There are certain universal layout plans by which a mall can be categorized; the striplayout, the "L" layout, the "U" layout, the cluster, the "T", the triangle, the dumbbell andfinally the double dumbbell (Jacobs, 1984; Jones, 1969). But because all of the shoppingcentres in this study have gone through a least one major expansion since its opening,their layouts are complicated, which makes it hard to categorize them into the majorcategories.The way in which non-anchor tenants are located in the shopping centre is alsocarefully planned. Certain tenants need to be located more strategically than others. Forexample, services usually create loyal customers and are therefore not as dependent ona central location. While the tenants that do not create customers, but which have to relyon passing trade, are heavily dependent on a central location. Tenants selling similargoods tend to benefit from being located together, for example children's and women'sclothing stores. Comparative shopping enables an increase in the productivity for each45store, and at the same time increase the traffic in total, or create a cumulative attraction(Jones, 1969, p.112). There are also tenants selling different products which benefit frombeing located together. For example, women's clothing stores, toy stores and children'sclothes stores are a compatible group that benefit from being located close to each other(Jones, 1969).3.3.2 ARCHITECTURAL DESIGN AND LANDSCAPINGThe shopping centres' visual appearance is an essential element in the overallplanning process. Both the external and internal design have to be included from the verystart of planning. The design and landscaping of a shopping centre gives a customer adistinct message about the centre. Edward T. Hall calls this the "The Silent Language"inthe book with the same name (Hall, 1961). According to Hall, one way to express thislanguage is through the exploitation of materials. The message or image the shoppingcentre presents through design, or lack of it, can be of crucial importance to its success.Many shopping centre developers have given the architecture second priority afterlocation and layout. As a result, the shopping centre's image may not be suited to thecommunity and environment it is located in (section 5.6 for examples and furtherdiscussion). THE EXTERNAL DESIGNThe external appearance of the centre has to draw attention, impress and stimulatepeople passing by it to enter it. Several elements have to be carefully considered in this46regard. The design of the shopping centre complex has to create a sense of unity so thatcustomers perceive a positive image of the shopping centre as a whole. But at the sametime, the design has to reflect the diversity of goods and services that the shoppingcentre is providing. This has to be done in order to make the centre an attractive placefor tenants, with their own strong image, to locate (Jones, 1969).The use of external shopping windows can signify the stores' images. But it canalso cause problems. Merchandise can fade in the sunlight; the presentation of goods invarying daylight can diminish the effect of the display; and the windows are in general acostly maintenance factor. Solid walls are therefore preferable for many shopping centres.This puts more pressure on the design effort. Walls should be stimulating and interestingto people that view them. They should also signify what people can expect to see insideof the malls. At the same time, walls should symbolize the environment that surrounds thecentre. This can give people a feeling of attachment to the centre as a part of theircommunity and surroundings (Jones, 1969).Shopping centres tend to be one and, sometimes two stories high. Such relativelylow buildings can be difficult to see for people passing by on the roads. Similarlyentrances can be difficult to view from the parking lots. The design and landscaping canbe used to reduce these disadvantages. Signs and different landmarks can be used toattract attention and guide people passing by into the centre. Pedestrian paths from theparking lot to the entrance can serve as a guide as well as improve peoples' safety. Thesame function can be provided by canopies and planted trees, both of which also provideweather protection.473.3.2.2 THE INTERNAL DESIGNIn many cases entering a shopping centre feels like entering a new world, totallyseparated and protected from the one outside (Kowinski, 1985). This world has beencarefully designed so that it will benefit the tenants, the owners of the mall and to somedegree the customers. It tends to put the customer lowest on this priority list, becausethis is usually a world that is created with maximum profit as its primary goal. If the designof the centre can help make shopping a "fun" experience, the centre benefits by havingpeople visiting the centre more often, engaging in impulse buying and perhaps stayinglonger than they intended. This will influence the centre's income potential.Victor Gruen suggested in 1960 that the old, traditional shopping street that oneleft behind when moving out to the suburbs should be the model for shopping centredesign....these spaces must be more than narrow lanes betweenlong rows of stores. They must represent an essentially urbanenvironment. They should create opportunities for manifoldactivities. They must be busy and colourful, exciting andstimulating, full of variety and interest (Gruen & Smith, 1960,p.147).There are several key elements that contribute in creating such an environment.The store's frontage can be designed in such a way that it maximizes traffic flow andreduces barriers in the shopping centre. The seating areas that are provided should bedesigned into the mall environment but at the same time not hold up traffic (Gruen &Smith, 1960, p.144).48The kinds of colours and how they are used can influence consumer behaviourand are therefore an important consideration in mall design. Studies indicate that warmercolours have the ability to attract and stimulate customers, while cooler colours areappropriate in an environment where the customers need deliberation over the purchasedecision (Bellizzi & Crowley & Hasty, 1983).Attention is also given to the appearance of common areas. Key elements likesculptures, murals and music can make the centre varied and exciting and add somecharacter to the centre. Water fountains, trees and flowers can create a relaxing andenjoyable environment which makes the centre a pleasant place to spend time, andnaturally, money.Few shopping centres today have followed Gruen's advice. The desire for shortterm profit and maximum return of investments can not always be achieved by followingGruen. Steven Snyder says that,The demise of the urban street as public space has shifted tothe private interior streets of the malls. These private realmsdeny any form of individual expression outside of thecorporate agenda of consumerism (Snyder, 1992, p.56).The emphasis on profit rather than the planning principles spoken of by Gruen isreflected in the shopping centre design we see today. For example, national chain storesare regarded as valued tenants by most shopping centres. Their location in the centre isimportant for the economic viability of shopping centre as a whole and therefore theirwishes will often be satisfied with little regard for anything else. This effort to please them49is frequently seen in the mall's bending of frontage rules to satisfy the powerful tenant(Gruen & Smith, 1960, p.145).The shopping centre must also be careful in its use of designs that interfere withthe customers shopping mood. For example, it is suggested in several shopping centrehandbooks that too much non-retail area can have a negative effect on shopping volume.Moreover, tenants are often reluctant to pay more than is absolutely necessary for theinterior design of the mall.In section 3.7, I intend to examine design aspects of the six shopping centres ofmy study. This examination is based on answers to a questionnaire that I administeredto the mall managers and developers. I will present these findings in the context of myown subjective impression of the six malls carried out during field surveys in 1992 and1993.3.4 VACANCY RATES The number of vacancies found in a shopping centre can be viewed as anindicator of change and indicate what may lie ahead. In this part of the study vacancy rateof the six malls is recorded for each year of the study. In order to make comparisons thetotal number of vacant leasable units to the total number of units in each mall per yearwere recorded. Before looking at the six case studies in section 3.7, some commentsneed to be made about using vacancy rate as an indicator of change.It would be tempting to assume that a high percentage of vacancies indicates anunsuccessful shopping centre which has problems finding tenants to fill the empty space.50However, from discussions with some of the mall managers it appears that some mallmanagers actually prefer a certain number of vacancies. This is because vacancies allowthe mall managers some degree of choice in terms of tenant mix. Some malls, hopefulof creating a particular image, will sometimes leave retail space vacant until the preferredtenant comes along (interview with Marlis Spanton).Yet while this may be the case for the financially stronger shopping centres, othermall managers wish to hide their vacancies. Empty stores and blank walls, without doubt,have a negative impact on shoppers. Empty space can signify to the consumer that thecentre has difficulty securing and keeping tenants and that "something is wrong" in thisplace. At the same time, vacancies also hurt neighbouring tenants. Reduced foot traffichas an obvious negative effect on these stores. In order to avoid these problems someshopping centres lower the rent of vacant units, and in some cases waive rent for alimited time. John Heinzl in the Globe and Mail notes, for example, that,With few tenants in the wings to fill empty stores, landlordsare willing to jump through hoops to keep those they considerreputable retailers in business. An occupied store lends avaluable impression that the mall is thriving, even if the tenantspays nothing in rent (Heinzl, 1991b, A).Thus, vacancy rates are not always the best available indicator of success.Nevertheless, they do provide some information about a given mall that enables researchquestions to be raised.513.5 FREQUENCY OF CHAIN STORESThe definition used by Statistics Canada for a chain store is:...an organization operating four or more retail outlets in thesame kind of business, under the same legal ownership atany time during the survey year. The only exception isdepartment store organizations which are treated statisticallywith chain organizations even though they may fail to meetthe criterion of four or more retail stores. Any firm not meetingthe above definition is automatically classified as an"independent organization" (Statistics Canada, 1990bAppendix 1).This definition is also used in this part of my study dealing with the relationshipbetween shopping centres' and chain store organisations. In addition to the data onmalls, Statistics Canada provides a list of all chain stores located in Canada. This sourceof information together with the  Directory of Retail Chains in Canada  (Monday Report onRetailers, 1990), are the sources for data in this analysis. The latter publication uses abroader definition of chain store organisation. It specifies that the organization must havethree or more outlets in order for it to be listed as a chain store organisation. This alsoapplies to department stores. By using both definitions, every chain store organisationunder the same legal ownership with three or more outlets, and all department stores, willbe accounted for in this study when nothing else is indicated.In the first part of this section I will describe the growing importance of the chainstore organization in Canadian retailing and show how this development is closely relatedto the growth of the shopping centre industry.523.5.1 RETAIL CHAIN STORES AS PART OF THE TOTAL RETAIL INDUSTRYChain store organizations have become an important part of the Canadian retailmarket, replacing independent businesses. The retail market has changed, competitionon all levels from the local to the international market has become more intense and thecomplexity of retail patterns in general has increased. Retailers have responded to thesedevelopments by clustering together into chain stores and franchise organisations. Bydoing this, the larger chain store organisation is able to spread its risk, and is thereforebetter able than independents to deal with market and economic fluctuations.Table 4 shows the total number of chains and the average number of stores theyoperate over the period 1960 to 1989. In this table, department stores are excludedbecause their development differs from other chain stores. In 1960 there were 537 retailchains in Canada, with a total of 9,954 stores. By 1989, 1,121 chains operated 35,572stores. The number of actors in the chain store industry has increased, but moreimportantly the total number of stores being operated has increased sharply. While chainsin 1960 were operating an average of 19 stores, chains in 1989 operated nearly twice asmany stores.In Table 5 chain store organisations are compared to the two other major retailactors, department stores and independent retailers. Department stores in this table aredistinguished from chain stores to illustrate that the their sales figures are deriveddifferently from the rest of the chain stores. Chain store retailers' total sales haveincreased over the past several years. In 1960 retail chain stores accounted for 22.4% oftotal retail sales. Their share increased to an average of 32.3% during the course of the53TABLE 4^HISTORICAL STATISTICS OF RETAIL CHAINS,^(EXCLUDINGDEPARTMENT STORES) CANADA, 1960 TO 1989.YEAR NUMBER OFCHAINSAVERAGE NO.OF STORESAVERAGE NO.OFSTORES OPERATEDBY CHAINS19601965197119761981198219831984198519861987198819895376028338278761,0011,1451,2351,2921,2671,3081,1871,1219,95410,67715,97619,74123,92225,78626,96628,83630,66531,84034,49235,30035,57218.517.719.223.827.325.823.623.323.725.126.429.731.7NOTE:THE AVERAGENUMBER OFMID-POINTORGANIZATIONS.SOURCE:STATISTICSSTORES.NUMBER OF STORESSTORES IN OPERATIONAND THE END OFCANADA.^1990.Catalogue No.^63-210.IS OBTAINED BY AVERAGING THEAT THE BEGINNING, THETHE FINANCIAL YEAR OF CHAINRETAIL CHAINS AND DEPARTMENT54TABLE 5^HISTORICAL STATISTICS ON SALE OF DEPARTMENT STORES, CHAINSTORES AND INDEPENDENT STORES, AS A PERCENTAGE OF TOTAL RETAIL TRADE,CANADA,^1950-1989.YEAR TOTAL RETAIL DEPARTMENT STORE CHAIN STORE INDEPENDENTTRADE STORE SALES IN % SALES IN % STORE SALES$'000 IN %1950 8,265,635 10.9 21.8 72.51960 15,356,643 8.6 22.4 69.01965 20,714,192 8.8 23.9 67.31971 31,387,959 10.2 28.4 61.41976 56,716,573 11.5 30.3 58.21981 94,196,164 10.9 31.4 57.71982 97,861,894 10.5 33.4 56.11983 106,542,674 10.3 33.3 56.41984 116,726,575 9.9 33.3 56.81985 129,597,093 9.5 32.6 58.01986 140,150,410 9.2 32.4 58.41987 154,190,353 8.4 32.2 59.41988 165,931,455 8.0 31.6 60.41989 174,652,971 8.0 31.9 60.1NOTE:TOTAL RETAIL TRADE IS DEFINED AS THE AGGREGATED SALES MADETHROUGH RETAIL LOCATIONS (OUTLETS).SOURCE:STATISTICS CANADA.^1990. RETAIL CHAINS AND DEPARTMENT STORES.CATALOGUE NO.63-210. TEXT TABLE 1.1980's. Since 1976 department stores have seen their share of total retail sales decrease.Independent retailers, though still accounting for the largest share of total sales, haveexperienced a decline in percentage of sales from a high of 72.5% in the 1950's, to anaverage 58.1% in the 1980's (Statistics Canada, 1990b).553.5.2 RETAIL CHAINS' SIZEThere are a few chain store organisations in Canada that control a large numberof stores, and therefore control a significant percentage of chain store sales. Table 6shows that the retail chains operating with 4-9 stores accounted for 60.7% of the totalnumber of retail chains operating in Canada in 1986. However, this group of stores onlyaccounted for 12% of the total retail chain sales for that same year. For 1986 the chainsthat operated 100 stores or more, represented only 5.5% of the total number of retailchains, but accounted for 53.3% of the retail chain sales. As Table 6 indicates, three yearslater, in 1989, the trend continued.3.5.3 NATIONAL VERSUS LOCAL AND PROVINCIAL CHAINSThere are a number of retail chains operating at the provincial level in Canada(Table 7). In 1986 45.4% of all retail chains in Canada were provincial chains. Three yearslater this proportion decreased slightly to 43.2%. However, while the number of provincialchain stores seemed to decline over this period, their percentage of total sales increasedfrom 35% to 39.5%. This could be an indication that the provincial chain storeorganizations have been able to increase their productivity and become more competitive.This has lead to a higher market share for the total chain store sales.The opposite seems to be true for the chains operating on a national level. Thenumber of national chains as well as the total number of stores they operate increasedin the same time period. At the same time, their proportion of total retail chain sales56TABLE 6^DISTRIBUTION (IN PERCENT) BY NUMBER AND SALES OF RETAIL CHAINS,BY NUMBER OF STORES OPERATED.NUMBER OFSTORES1986 1987 1988 1989NUMBER SALES NUMBER SALES NUMBER SALES NUMBER SALES4-910-4950-99100-60.727.95.95.512.015.219.453.359.629.05.75.710.918.616.454.055.331.36.76.810.217.817.854.151.733.67.27.511.017.318.353.5SOURCE:STATISTICS CANADA.CATALOGUE NO.63-210.1990. RETAIL CHAINS AND DEPARTMENT STORES.TABLE 7^RETAIL CHAIN STORES'^(EXCLUSIVE DEPARTMENT STORES) DISTRIBUTION(IN PERCENT) OF NUMBER AND SALES, BY TYPE OF LOCATION, CANADA,^1989-1989.TYPEOF LOCATION1986 1987 1988 1989CHAINS SALE CHAINS SALE CHAINS SALE CHAINS SALELOCALPROVINCIALNATIONAL23.145.431. CANADA.^1990.CATALOGUE NO.63-210.RETAIL CHAINS AND DEPARTMENT STORES.57decreased from 60.8% to 57.1%. This may indicate that an increasing number of nationalchains will have to share a smaller portion of total chain sales.The number of local chains operating in Canada during the period 1986 to 1989has declined and so too has the total number of stores in these chains. For the sameperiod, the small proportion of total sales that these chains accounted for has declinedto a even lower level, from 4.2% to 3.4%.There seems to be a disproportionate relationship between the number of chainsoperating at one level and their share of the total retail chain sales. The national chainsaccount for over half of the total sales in the retail chain industry, but operate only a thirdof the total number of chain stores in Canada in 1989.3.5.4 RETAIL CHAINS LOCATED IN SHOPPING CENTRESThe shopping centre developers and the chain store organizations have developeda close relationship, which has assisted each of them to grow and become strong actorsin the retail environment (section 4.9). Of all the retail chain stores operating in Canadain 1973, 4,689 or 24.6% of them were located in shopping centres (Table 8). Fifteen yearslater, over half of the retail chain stores operating in Canada in 1988 were located inshopping centres. This illustrates how the relationship between the retail chain stores andthe shopping centre developers has grown stronger. Considering that the retailers locatedin shopping centres accounted for 35.9% of the total retail chain store sales in 1973, and55.3% of the sales in 1988, there appears to be an increasing trend towards chains andshopping centres combining their efforts.58TABLE 8^TOTAL NUMBER AND SALES OF CHAIN STORES IN SHOPPING CENTRESAS A PERCENTAGE OF TOTAL CHAIN STORES, CANADA,^1973 AND 1988.YEAR 1973 1988TOTAL NO.OFCHAIN STORES 19,086 37,823NO.OF CHAIN STORESLOCATED IN SH.CENTRES 4,689 19,688IN PERCENT 24.6 52.1TOTAL CHAIN STORE SALESSALES $ '000 15,685,009 65,773,877TOTAL CHAIN STORE SALESIN SH.^CENTRES $^'000 5,626,856 36,382,838IN PERCENT 35.9 55.3SOURCE:STATISTICS CANADA.^1992. MARKET RESEARCH HANDBOOK.CATALOGUE NO.^63- TYPE OF RETAIL CHAINS AND THEIR LOCATION IN SHOPPINGCENTRESDifferent retail chain stores find it more attractive to locate in a shopping centrethan others. Shopping centres seem to provide a certain image combined with serviceswhich some tenants find more beneficial than others. The degree of involvement by chainstore organisations in the shopping centre is highly dependant on the kind of businessundertaken by these organisations. Table 9 shows some of the category clustering whichhas occurred in the shopping centre industry in about the last decade.59Retail categories supplying women's, mens and family clothing, shoe stores,jewellery stores and department stores predominate in shopping centres. This picture haschanged over time, and their numbers have been on the rise. The greatest increaseoccurred in the categories of jewellery stores, family clothing stores and shoe stores(Table 9).3.5.6 RETAIL CHAINS AND THE TYPE OF SHOPPING CENTRE LOCATIONRegional shopping centres have always relied on a close relationship with chainstore organizations. Because of their size and high investment capital, regional shoppingcentres view chain stores as secure, predictable tenants.Table 10 shows the strength of the relationship between chain stores and shoppingcentres. In 1986, 720 retailers, or 69.2% of all retail chain stores, operating in Vancouver,B.C., were located in regional malls. Two years later, the number had increased by 45retailers to 70.2%. In this time period, these retailers represented more than half of thetotal retail chain store sales.3.5.7 REGIONAL SHOPPING CENTRES AND THE TYPES OF CHAIN STOREOPERATIONDifferent shopping centres have varying numbers of national, provincial and localchain stores located in their facilities. Regional shopping centres tend to have a relativelyhigh concentration of national chain stores (Simmons, 1990; Ircha, 1982). This no doubtreflects the fact that regional malls have by their very nature, greater traffic flows than the60TABLE 9^NUMBER OF RETAIL CHAIN STORES IN CANADA IN SHOPPING CENTRES,BY KIND OF BUSINESS, CANADA,^1973 AND 1988.KIND OF BUSINESS TOTAL NUMBEROF RETAIL CHAINSTORESNO. OF RETAILCHAIN STORESLOCATED IN SH.CENTRESPERCENTAGE OFCHAIN STORESLOCATED IN SH.CENTRES1973 1988 1973 1988 1973 1988ALL STORES 19,086 37,823 4,689 19,688 24.6 52.1SUPER MARKET ANDGROCERY STORES 3,227 4,450 628 922 19.5 22.3ALL OTHER FOOD STORES 630 616 219 385 34.8 62.5OTHER GENERAL MERCH-ANDISE STORES 2,113 2,562 246 580 11.6 22.6SERVICE STATIONS ANDGARAGES 1,548 3,994 22 131 1.4 3.3MEN'S CLOTHING 465 1,116 235 951 50.5 85.2WOMEN'S CLOTHING 1,269 4,840 707 4,435 55.7 91.6FAMILY CLOTHING 584 2,429 169 1,790 28.9 73.7SHOE STORES 1,684 2,549 649 2,096 38.5 82.2DEPARTMENT STORES 531 837 262 727 49.3 87.0HARDWARE STORES 50 133 13 25 26.0 18.8FURNITURE,T.V.,RADIOAPPLIANCES STORES 520 1,624 95 776 18.3 47.8DRUG STORES 599 1,083 131 437 21.9 40.4JEWELLERY STORES 370 910 154 826 41.6 90.8ALL OTHER STORES 5496 1,068 1159 5,458 21.1 44.4SOURCE:STATISTICS CANADA.^1992.CATALOGUE NO.^63-224.MARKET RESEARCH HANDBOOK.61TABLE 10^TOTAL NUMBER AND SALES OF RETAIL CHAIN STORES IN SHOPPING CENTRESBY PERCENTAGE, BY TYPE OF LOCATION, FOR 1986, 1987 AND 1988.VANCOUVER, B.C.YEAR NO.OF CHAIN STORE % OF CHAIN % OF CHAINSTORES SALE STORES STORE SALENEIGHBOURHOOD 1986 31 312,569,499 3.0 14.0SHOPPING CENTRE 1987 31 332,950,390 2.8 14.01988 31 358,740,381 2.8 15.0COMMUNITY 1986 125 356,975,505 12.0 16.0SHOPPING CENTRE 1987 132 397,674,940 12.1 17.01988 132 458,527,121 12.1 19.0REGIONAL 1986 720 1,215,121,112 69.2 54.0SHOPPING CENTRE 1987 759 1,240,084,722 69.7 54.01988 165 1,267,877,198 70.2 52.0INDOOR 1986 164 356,046,671 15.8 16.0SHOPPING MALL 1987 167 346,185,473 15.3 15.01988 161 346,464,809 14.8 14.0TOTAL 1986 1040 2,240,712,787 100 1001987 1089 2,316,895,525 100 1001988 1089 2,431,791,509 100 100SOURCE:STATISTICS CANADA.^1992. MARKET RESEARCH HANDBOOK.CATALOGUE NO.^63-224.local malls. Chains find this factor appealing and therefore tend to locate there.Unfortunately, there is no published data which distinguishes the type of chain storeoperations and type of shopping centre location. It would be interesting to see what theactual numbers of national, provincial and the local chain store retailers were in thedifferent types shopping centres.62Several studies have been made which show that there is a high proportion ofchain stores, especially of national chains, located in the regional shopping centres(Honigman, 1985). Interviews made during the study also suggested that such arelationship exists. Later in this paper I will elaborate more on this point in my discussionof the six malls.3.6 TENANT MIX IN THE REGIONAL SHOPPING CENTREThe shopping centre's tenant mix is of crucial importance to its overall businesspolicy. A well thought out tenant composition can significantly influence the centre's "pull"effect on customers to the centre as well as on their spending patterns. A good tenantmix gives the centre prestige, and all tenants benefit as a result.I have chosen to divide this discussion into two parts. In the first I will deal withsome of the tenant categories operating in the six regional shopping centres. This is doneto show that while some tenant categories dominate in terms of numbers, othercategories, though fewer in number, play an essential role in the centres retailenvironment. In the second part of this chapter I will examine the tenants in closer detail.I will look at the numbers of tenants offering services activities as compared to the tenantssupplying the customers with goods.3.6.1 FASHION AND FOOD STORESIn the first part of this section I will take closer look at two tenant categories:clothing and shoe stores; and food serving tenants.63In the first shopping centres that were built in North America, developers wereconcerned about putting competing stores into the same centre. As the shopping centreindustry developed and the retailer became more familiar with the centres it became clearthat the presence of competitors under the same roof was an advantage, not a problem.Southgate Mall located close to Minneapolis was the first shopping centre to prove this.Tenants selling the same sort of merchandise were located not only in the same centre,but in the same part of the centre. This was found to be a highly beneficial arrangement.Consumer traffic increased and particularly in the areas of the mall where competitorswere closely located. Colin S.Jones called this effect "cumulative attraction" (Jones, 1969).Regional shopping centres of today have been influenced by the cumulativeattraction phenomenon in their selection of tenants. There are unofficial guidelines thatshopping centre developers use to decide what tenants they should look for and to whatdegree that type of retailer should be represented in the tenant mix. Although theseguidelines seem to have worked reasonably well in various shopping centres in a varietyareas, developers must be careful to not allow them to become universal recipes (Curran,19991; Fennell, 1989; Bristol, 1991). The environment surrounding, and the uniquenessof the community in which the centre is located must be carefully considered in the tenantselection process (Petroff, 1991). I will deal with this aspect of tenant mix later in thisstudy.Regional shopping centres, for the most part, cater to the female shopper. Asmuch as eighty percent of the regional shopping centres customers are female. Regionalshopping centres respond by creating a "women-friendly" environment (interview with64Lorne J. Braithwaite). One way this is done is by creating a combination of stores suchas a concentration of women's clothing that are appealing to female shoppers. Andbecause women are perceived as the primary purchasers in the families, family, men'sand children's stores are also a common feature in regional centres.The tenants involved in selling and preparing food and drinks for consumption inthe mall, have become a more common tenant in regional shopping centres (Adams,1991). While in previous years there were perhaps only two such outlets in a mall, todaywe see food-courts with numerous food outlets offering a vast array of cuisine. Thesefood-courts have become an important part of modern malls. Although their main purposeis to serve shoppers with a place where they can sit down and relax and consume food,they also prevent shoppers from leaving the mall when they wish to eat.The food-courts are often designed and decorated differently from the rest of themall. Plants, colours and sculptures are but a few of the elements used to make the food-courts a distinct place. More and more effort is put into their design, with the purpose ofmaking the visit to the food-court an experience in itself that pulls people in to the centre.3.6.2 GOODS TO SERVICE RATIOThe goods to service ratio illustrates important changes that regional shoppingcentres have undergone. The ratio is created by first dividing the shopping centre'stenants into the two basic categories, goods and service, the latter category including allservices as well as office tenants, and then by dividing the number of goods tenants withthe number of service tenants. A ratio that is more than 1 indicates an emphasis on65fashion, while a service oriented mall will have a ratio between 0 and 1 (Bernardo, 1989).The ratio is an instrument that will be used to measure changes in the six shoppingcentres in Vancouver, as well as make comparisons among them, where possible. In thisstudy the goods to service ratio will be used to indicate changes in tenant mix that haveoccurred over time.There are differing views on what a change in the goods to service ratio indicates.Some argue that a lowering of the ratio is a sign of a centre in decline, as it shows thatthe centre is not able to keep or attract tenants with higher trade volume. When thisoccurs, it is reasoned, the mall is forced to replace these tenants with service tenants.The goods related tenants, in general, occupy larger store units and are able to earnhigher sales per square foot (ULI, 1987). This will especially influence the shoppingcentres revenue if the rent or part of it is based on a percentage of the tenants sales. Alarge concentration of goods-selling tenants is therefore viewed in this theory as anindicator of a shopping centre that is doing well from a business standpoint. Geoffery J.Bernardo (1989) for example, sees a decline in the goods to service ratio in Toronto mallsas a indication that they are declining. He further argues that a lowering of the ratio israrely done on purpose by the shopping centre that is doing well. However, it is my viewthat while this theory may have been accurate in the past, it is not necessarily the casetoday.Contrary to Bernardo's view, it may be argued that an increase in the number ofservices in a shopping centre is in fact a healthy sign of a centre in transition. Although66goods tenants earn more per square foot and occupy more space than non-goodtenants, service tenants can create a pull effect on customers.3.7 THE SIX CASE STUDIES In the following section, I will look at the relative location, architecture and vacancyrate at the six regional shopping centres in this study. I will also look at their relationshipwith the chain stores. Finally, I will discuss each of the six shopping centres and theirgoods to service ratio over the period of this study.3.7.1 BRENTWOOD MALLLOCATION Brentwood Shopping Centre is located in the Municipality of Burnaby.It is found at the intersection of the Lougheed Highway which carries traffic in an east-west direction and Willingdon, which leads traffic in a north-south direction. These areboth two major transportation routes that connect highly populous areas. Willingtonconnects, less than a kilometre south of the centre into the Trans-Canada Highway(Map 1).Brentwood Mall is near to the border of Vancouver. Brentwood Mall competes withretailers in the City of Vancouver which is the strongest retail area in the Vancouver CMA(Table 3). Vancouver has a total of 27,590,579 retail square footage, but just 7.6% of thisis found in shopping centres. Burnaby, on the other hand has a total of 5,587,883 retailsquare footage, 2,322,718 square feet or 41.6% of the total retail area is located in67shopping centres. Brentwood Mall, with its 500,000 square feet represents 21.5% of thetotal shopping centre retail area in Burnaby. During my survey of Brentwood Mall, in July1992, it became clear that the centre caters to large numbers of people of British, Chineseand Italian backgrounds (interview with Pam Bryson).Brentwood is not located close enough to one of the town centres to be able tobenefit from the extra business it creates.LAYOUT AND DESIGN Brentwood Mall's distinctive architecture is easily seen fromthe two roads. The shopping centre's roof looks like a number of small circus tents. It isa design which attracts attention for the traffic passing by as well as distinguishes it fromthe rest of the surrounding buildings. The parking lots, which are located on all sides ofthe centre, are accessible from both of the major roads. Large signs guide traffic intothese parking lots. The parking lots are quite large, which can make the walk throughthem into one of the entrances a less than pleasant experience. The sidewalks along thebuilding, the few paths in the parking lots and the canapes improve access to the mallas well signify the different entrances to the mall.A bus station is located inconveniently at the far south-west end of the shoppingcentre site. The many connections to other parts of the Vancouver CMA which thesebuses provide, no doubt benefit this shopping centre. The opportunity to make use of thisincoming traffic does not seem to be optimized. Passengers have to walk through thelarge parking lot on a path which is narrow and unprotected from the weather. This couldeasily be made more attractive and convenient for these passengers.68Inside the shopping centre an active and pleasant environment is present. Thewhole of the first and second floors, have the same colour schemes. White and greenceiling, white walls with a grey and burgundy stripe above the individual tenants, and lightgrey tiles with some dark grey decorations are used. These colours make the mall abright, but at the same time, calm place where most of the customers' attention is drawntoward the more eye-catching stores.Both levels of the shopping pathways are, for the most part illuminated through skylights. In addition, light fixtures in different styles make the part of the corridors which arenot provided with daylight bright. The ceiling is formed from several white tents, whichprovide the passage-ways with a pleasant natural brightness, not as intense as an openglass skylight. The side's walls have some smaller windows, which adds to the brightness.Some parts of the passage-ways on the second level are left open so that the natural lightalso comes down to the first mall level.The two anchors, the Bay and Zellers are located on the north-west and south-eastsides of the centre respectively. These locations create a pull effect in the pedestriantraffic flow from which the tenants all benefit."Streetscape" is a section of the mall where smaller specialized stores are locatedtogether with a few push carts. The stores as well as the carriages have colourfuldecorations and signs on them. A new version of the traditional circus carousel is placedin the middle of the Streetscape which adds to the atmosphere. Despite the effort, theintention to create a part of the traditional street in a mall is difficult if not impossible toachieve. But by opening this area up to the outside environment with large glass walls69and doors, the surrounding area supplements certain elements missing in the streetcreated inside. This area is located under one of the smaller tent ceilings, which separatesthe area from the rest of the mall. At the same time the theme of an active, lively butcarefully designed circus atmosphere is followed through.The food-court is located on the opposite side of the Streetscape. Food fromdifferent parts of the world is offered. Large trees and green parasols make it a livelyplace. The tenants are all located along the sides of the tent. In the middle of the area,there is a large and dense seating area under natural bamboo trees and green parasols.The seats are hard and uncomfortable, which makes people eat their food and leavequickly, turning their seats over to new customers. Despite the trees and the pleasantview of west Burnaby, it is a busy and fairly noisy place. This prevents people from tobecoming too relaxed and forgetful about shopping.VACANCY Brentwood Mall had the highest percentage of vacancies compared tothe other centres during the period 1966 to 1985 (Table 11). In 1983 the vacancy rateincreased from 8% to 13.3%. It appears that the vacancy rate slowly declines from thispoint onward, hitting its lowest level in 1988 with 3.4%. In 1989 the mall expanded by165,000 square footage and saw with it an increase in vacancy rate to 13.2%. In thesubsequent years, the vacancy rate has been fairly low, giving this mall the second lowestvacancy rate of all six shopping centres in the study.70TABLE^11^NUMBER^AND^PERCENTAGE^OF^VACANCIES^IN^THE^SIX^CASE^STUDIESYEAR 1961 1966 1971 1976 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991BRENTWOOD MALL4 4 7 7 9 3 5 3 5 0 4NUMBER OFVACANCIESt OF VACANT UNITSOF TOTAL GLR UNITS 6.7 6.0 6.6 8.1 8.0 13.3 17.3 9.0 3.2 5.6 3.4 13.2 0 3.7CAP LANO MALL0 0 0 0 3 3 3 10 0 5 2 8 7NUMBER OFVACANCIESt OF VACANT UNITSOF TOTAL GLR UNITS 0 0 0 0 6.7 6.7 6.7 24.4 0 4.5 1.7 7.1 6.3LOUGHEED MALL1 2 3 3 3 3 8 1 0 14 10 18 18NUMBER OFVACANCIESt OF VACANT UNITSOF TOTAL GLR UNITS 1. 2 2.2 3.1 3.0 3.1 3.1 8.2 1.0 0 8.1 5.9 9.7 9.8OAKRIDGE CENTRE0 0 1 0 0 0 0 0 19 9 4 3 9 9 6NUMBER OFVACANCIESt OF VACANT UNITSOF TOTAL GLR UNITS 0 0 2.3 0 0 0 0 0 5.8 3.8RICHMOND CENTREIIII1 1 7 2 2 1 2 4 4 3 11 13 20NUMBER OFVACANCIES% OF VACANT UNITSOF TOTAL GLR UNITS 2.4 1.9 1.0 6.5_151.871.652.111.603.0434 98.3158.31512.613SURREY PLACE MALLNUMBER OFVACANCIES% OF VACANT UNITSOF TOTAL GLR UNITS 27.8 12.7 9.1 5.3 0 7^1^6 8.3 14.9 14.9 10.3SOURCE:B.0 DIRECTORIES.^1959 TOB.0 DIRECTORIES.^1966 TO1991.^VANCOUVER CITY DIRECTORY.____1991.^VANCOUVER SUBURBAN DIRECTORYIn September 1992, Brentwood Mall had 9 vacant store locations, however, two ofthem had signs on the windows announcing that new tenants were in the process ofmoving in.71CHAIN STORES Bentwood Mall has experienced a steady increase in the numberof chain stores over the course of the study (Table 12). However, from 1988 to 1989 thepercentage decreased from 46% to 23.7%. This dramatic decrease was caused by amajor expansion/renovation that the centre went through in 1989. The centre started outin 1961 with 17.2% of its tenants as chain stores, and by 1991 increased they represented53.3% of all tenants. This is the second highest level of chain stores, compared to the fiveother centres in this study.TENANT MIX The percentage of clothing and shoe stores in Brentwood Mall slowlyincreased with only small adjustments from 1966 to the late eighties (Table 13). In 1989the centre went through an expansion following which 59% of the new tenants were in theclothing and shoe category. The overall share of these tenants climbed from 7.9% to31.6%.In 1966 Brentwood Mall had two tenants serving food (Table 14). These tenantswere joined by new tenants, and after the expansion in 1986 the numbers increased. By1991 there was a total of fifteen such places in the mall.In 1966 this shopping centre had more service tenants than goods tenants, whichresulted in a low 0.9 goods to service ratio (Table 15). The increase in the ratio seemsto begin after the centre's 1972 expansion. It reached a 2.3 ratio in 1981 and stayed atthis level with only small changes for most of the eighties. In 1989 the centre went througha 165,000 square foot expansion, and this lowered the ratio to 0.9. This low ratio is areflection of the major constructions that forced most of the tenants to close for varyingTABLE 12^NUMBER AND PERCENTAGE OF CHAIN STORESIN THE SIX CASE STUDIES.YEAR 1961 1966 1971 1976 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991BRENTWOOD MALL11 13 19 26 28 31 31 35 36 38 40 9 53 57NUMBER OFCHAIN STORES% CHAIN STORES OFTOTAL NO.TENANTS 17.2 19.3 25.0 30.2 32.2 34.4 34.4 35.0 38.3 42.2 46.0 23.7 55.8 53.3CAPILANO MALL5 13 12 14 14 14 14 14 61 60 64 66 65NUMBER OFCHAIN STORES% CHAIN STORES OFTOTAL NO.TENANTS 29.4 35.1 28.0 31.1 31.1 31.1 31.1 34.1 56.0 54.5 57.1 58.9 59.1LOUGHEED MALL21 29 38 42 47 47 45 47 87 88 90 98 94NUMBER OFCHAIN STORES8 CHAIN STORES OFTOTAL NO.TENANTS 24.4 31.5 38.8 42.4 48.5 48.5 46.4 44.8 50.6 51.0 53.0 53.0 51.4OAKRIDGE CENTRE7 8 9 14 16 16 17 17 58 62 67 73 79 77 77NUMBER OFCHAIN STORES8 CHAIN STORES OFTOTAL NO.TENANTS 15.2 19.0 21.0 31.1 36.4 35.5 40.5 40.5 37.6 40.5 42.9 45.1 48.8 49.7 49.0RICHMOND CENTRE7 12 43 48 56 58 66 63 65 69 70 80 80 77NUMBER OFCHAIN STORES% CHAIN STORES OFTOTAL NO.TENANTS 17.0 23.0 41.0 44.9 51.0 53.0 51.6 49.2 50.0 51.5 53.0 51.3 51.3 48.4SURREY PLACE MALL18 21 25 27 25 24 55 53 48 48 60NUMBER OFCHAIN STORES8 CHAIN STORES OFTOTAL NO.TENANTS 33.3 38.2 45.5 47.4 43.9 42.1 52.9 49.1 47.5 47.5 47.6SOURCE:B.0 DIRECTORIES.^1959 TO 1991.B.0 DIRECTORIES.^1966 TO 1991.MONDAY REPORT ON RETAILERS.^1990.VANCOUVER CITY DIRECTORY.VANCOUVER SUBURBAN DIRECTORY.DIRECTORY OF RETAIL CHAINS IN CANADA.TABLE 13^NUMBER AND PERCENTAGE OF CLOTHING AND SHOE STORESIN THE SIX CASE STUDIES.YEAR 1961 1966 1971 1976 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991BRENTWOOD MALL9 11 15 18 20 20NUMBER OF SH\CLOSTORES% OF SH/CLO STORESOF TOTAL 14.1 16.4 19.3 20.9 23.0 22.2 22.2 23.2 21.3 25.6 25.3 7.9 31.6 30.8CAPILANO MALL3 8 9 9 9 9 9 8 49 46 48 43 44NUMBER OF SH\CLOSTORES% OF SH\CLO STORESOF TOTAL TENANTS 17.6 21.6 20.9 20.0 20.0 20.0 20.0 19.5 45.0 41.8 42.9 38.4 40.0LOUGHEED MALL20 22 23 24 25 25 24 26 53 54 56 61 58NUMBER OF SH\CLOSTORES% OF SH\CLO STORESOF TOTAL TENANTS 23.3 23.9 23.5 24.2 25.8 25.8 24.7 24.8 30.8 31.4 33.1 33.0 31.7OAKRIDGE CENTRE13 12 12 14 16 16 16 16 55 58 61 63 61 54 58NUMBER OF SH\CLOSTORES% OF SH\CLO STORESOF TOTAL TENANTS 28.3 28.6 27.9 31.1 36.4 35.6 38.1 38.1 35.7 37.9 39.1 38.9 37.7 34.8 36.9RICHMOND CENTRE10 15 27 29 29 29 30 31 31 13 32 42 42 41NUMBER OF SH\CLOSTORES% OF SH\CLO STORESOF TOTAL TENANTS 24.4 28.8 25.7 27.1 26.4 26.4 23.4 24.2 23.8 24.6 24.3 26.9 26.9 25.8SURREY PLACE MALL14 17 17 18 18 20 35 35 30 30 43NUMBER OF SH/CLOSTORES% OF SH\CLO STORESOF TOTAL TENANTS 25.9 30.9 30.9 31.6 31.6 35.1 33.7 32.7 29.7 29.7 34.1SOURCE:B.0 DIRECTORIES.^1959 TO 1991.B.0 DIRECTORIES.^1966 TO 1991.VANCOUVER CITY DIRECTORY.VANCOUVER SUBURBAN DIRECTORY.TABLE 14^NUMBER OF FOOD-SERVING TENANTSIN THE SIX CASE STUDIES.YEAR 1961 1966 1971 1976 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991BRENTWOOD MALL2 2 1 3 4 5 5 8 8 8 8 4 11 15NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 64 67 76 86 87 90 90 100 94 90 87 38 95 107CAPILANO MALL1 3 5 5 5 5 6 4 15 15 15 14 14NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 17 37 43 45 45 45 45 41 109 110 112 112 111LOUGHEED MALL9 9 6 6 7 7 7 12 25 17 17 18 19NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 86 92 98 99 97 97 97 105 172 172 169 185 183OAKRIDGE CENTRE3 2 2 2 2 2 1 1 8 10 13 12 13 14 13NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 46 42 43 45 44 45 42 42 154 153 156 162 162 155 157RICHMOND CENTRE3 7 7 5 6 6 10 12 13 1 1 13 13 11NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 41 52 105 107 110 110 128 128 130 134 132 156 156 159SURREY PLACE MALL2 1 3 3 4 3 5 5 3 3 7NUMBER OF FOODSERVING TENANTSTOTAL NO.OFTENANTS 54 55 55 57 57 57 104 108 101 101 126SOURCE:B.C.^DIRECTORIES.^1959 TO 1991.B.C.^DIRECTORIES.^1966 TO 1991.VANCOUVER CITY DIRECTORY.VANCOUVER SUBURBAN DIRECTORY.-^,TABLE' - 15^GOODS TO SERVICE RATIO FOR THE SIX CASE STUDIES. YEAR 1961 1966 1971 1976 1981 1982 1983 1984 19p5 1986 1987 1988 1989 1990 1991.-;BRENTWOOD MALL28 29 38 52 51 47 47 59 55 54 52 14 67 64NO.OP GOODSSELLING TENANTSNO.OF NON-GOODSSELLING TENANTS 30 32 27 23 25 27 27.--'29 32 27 28 16 27 33TENANTS EXCLUDEDFROM THE RATIO 6 6 11 11 11 16 16 12 7 9 7 8 1 5GOODS TO NON-0.9 0.9 1.4 2.3 2.0 1.7 1.7 2.0 1.7 2.0 1.8 0.9 2.5 2.1OF TENANTS 64 67 76TOTAL NO.86 87 90 90 100^. 94 90 87 38 95 107CAPILANO MALL8 26 27 28 _^23 23 24 19 78 75 79 74 75NO.OF GOODSSEISING TENANTSNO.OF NON-GOODSSELLING TENANTS 7 8 14 15 16 16 16 11 26 28 27 26 26TENANTS EXCLUDEDFROM THE RATIO 2 3 2 2 6 6 11 5 7 6 12 10GOODS TO NON-1.1 3.3 1.9 1.9 1.4 1.4 1.5 1.7 3.0 2.7 2.9 2.8 2.9TOTAL NO.OP TENANTS 17 37 43 45 45 45 45^- 41 109 110 112 112 111LOUGHEED HALL .......54 53 60 60 59.).59 57 62 112 107 108 119 118NO.OF GOODSSELLING TENANTSNO.OF NON-GOODSSELLING TENANTS 28 33 28 28 29 29 28 38 54 46 44 45 44TENANTS EXCLUDEDFROM THE RATIO 4 6 10 11 9 9 12 5 6 19 17 21 21GOODS TO NON-GOODS RATIO 1.9 1.6 2.1 2.1 2.0 2.0 2.0 1.6 2.1 2.3 2.5 2.6 2.7TOTAL NO.OF TENANTS 86 92 98 99 97 97 97 105 172 172 169 185 183OAKRIDGE CENTRE31 27 24 26 30 31 29 29 102 108 110(117)116(111)110(101)101(108)106NO.OF GOODSSELLING TENANTSNO.OF NON-GOODSSELLING TENANTS 11 12 15 16 11 12 11 11 30(43)31(46)34(88)35(123)36(120)36(118)36TENANTS EXCLUDEDFROM THE RATIO 4 33 4 3 3 2 22 2 22 14(1)12(2)11(2)16(20)18 (1)15GOODS TO NON-GOODS RATIO 2.8 2.3 1.6 1.6 2.7 2.6 2.6 2.6 3.4(2.5)3.5(2.4)3.2(1.3)3.3(0.9)3.1(0.8)2.8(0.9)2.9TOTAL NO.OF TENANTS 46 42 43 45 44 45 42 42 154(165)153(169)156(218)162(252)162(241)155(242)157RICHMOND CENTRE28 35 77 76 83 83 92 90 91 93 90 104 104 106NO.OF GOODSSELLING TENANTSNO.OF NON-GOODSSELLING TENANTS 11 16 19 17 18 18 25^' 28 31 33 32 32 32 28TENANTS EXCLUDEDFROM THE RATIO 2 1 9 14 9 9 11 10 8 8 10 20 20 25GOODS TO NON-GOODS RATIO 2.5 2.2 4.1 4.5 4.6 4.6 3.7 3.2 2.9 2.8 2.8 3.3 3.3 3.8TOTAL NO.OF TENANTS^. 41 52 105 107 110^' 110 128^, 128 130 134 132 156 156 159SURREY PLACE MAL30 37^, 39 37  38 37 70 72 61 61 84 SELLING TENANTSNO.OF NON-GOODSSELLING TENANTS 6 5 10 13 17 15 26 25.  22 22 25FROM THE RATIO 18 13 6 7 .^_2 5 8 11 18 18 17GOODS TO NON-GOODS RATIO 5.0 7.4 3.9 2.8 2.2 2.5 2.7 2.9 2.7 2.7 3.4TOTAL NO.OF TENANTS 54 55 55 57 57 57 104 108 101 101 126NOTE:NUMBERS IN BRACKETS INDICATE THATSOURCE:B.0 DIRECTORIES . 1959 TO 1991.B.0 DIREG'TORZES . 1966 TO 1991.OAKRIDGE'S OFFICE TOWERSVANCOUVER CITY DIRECTORY.ARE INCLUDED.VANCOUVER SUBURBAN DIRECTORY76periods. One year later in 1990, the ratio was back to 2.5. It seems that the shoppingcentre preferred to fill its space with more goods than service related tenants. In 1991 thecentre had a lower goods to service ratio.3.7.2 CAPILANO MALLLOCATION Capilano Mall is located in the District of North Vancouver. The Trans-Canada Highway enters the District by the Second Narrows Bridge to the south, andturns west toward the District of West Vancouver. This major traffic route passes byseveral blocks to the north of the Capilano Shopping Centre. There are no major exits orentrances located close to the centre. Although there is no data to confirm this, it wouldseem that the importance of customers from Highway 1 is minimal (Map 1).The Lions Gate Bridge leads traffic from downtown Vancouver to Marine Drive.Traffic turning east on Marine Drive passes the shopping centre on the right hand sideshortly before Marine Drive splits up to Larson, going north-east, and 3rd Street, runningsouth-east. This places Capilano Shopping Centre in a relatively busy intersection fromwhich it seems to benefit.Although Capilano Mall is located close to the border between City of NorthVancouver and West Vancouver, the majority of its customers seem to come from TheDistrict of North Vancouver and The City of North Vancouver. This is due in whole or partby the location of West Vancouver's Park Royal Shopping Centre, which is located close77to Capilano Mall. Park Royal is more than twice the size of Capilano Mall, and this, nodoubt, reduces some of Capilano's pull effect on the market.The City of North Vancouver has a total of 568,082 retail square feet in shoppingcentres (Table 3). 404,316 square feet, or 71% of this total can be found in the CapilanoMall. Expressed another way, Capilano Mall represents 71% of North Vancouver'sshopping centre retail space. Of this total retail space, 26% in this district is found inshopping centres. This makes North Vancouver City number 10 out of 15 districts in theVancouver CMA in terms of shopping centre space as a percentage of total retail space.Comparing the retail area located in shopping centres with the estimated population for1991, North Vancouver City has 14.8 square feet of shopping centre retail space percapita. This makes North Vancouver City number 6 out of the 15 Vancouver CMA districtsin terms of shopping centre space per person.Thus, while North Vancouver rates fairly low on the list of the Vancouver CMA interms of shopping centre space, the amount of this type of retail space on a per capita-basis places the district in a higher rank level.Capilano Mall is located fairly close to the Lonsdale town centre in NorthVancouver. However, because the Capilano Indian Reserve divides the two areas fromeach other, the positive influence the town centre could have on Capilano Mall might inthe future be less significant (Map 2).LAYOUT AND DESIGN Capilano Mall is located on the busy Marine Drive in NorthVancouver. Driving along Marine Drive the centre is easily seen from the road because78of the big Sears sign and the building's distinctive architectural form. Marine Drive is themain road leading traffic by the centre. Hamilton Street, running on the west side, andHanes Street on the east side, offers parking entrances to the mall. The shopping centreprovides outside parking on the east, south and west sides of the mall. In addition, amulti-storey parking garage is connected conveniently close to the shopping mall. Theparking lots are relatively small. Access is made easy with the mall's numerous entrances.A bus stop is located on the north side of the building, and because of the malls closelocation to Marine Drive, the walk from the bus into the mall is minimal.Sears and the newly opened Pacific Linen Store are both located at the north sideof the mall, while Woolco is located in the south end. Together these three anchorsstimulate traffic in the mall from which the other tenants benefit.The mall provides a one level shopping environment. However, on the east sideof the centre some offices and one fabric store are located on a second, third and fourthfloor.Capilano Mall seems to prefer using a single theme in the design of its interior. Itsclose location to two Indian reserves appears to have influenced the architect. Two talltotem poles decorate the area beneath a vaulted ceiling. Large timber pieces are usedtogether with some trees to decorate the food-court's seating area.Cold and balm colours are used to decorate the interior. The floors are coveredby grey-white tiles together with some dark green decorative tiles. The same coloursalong with some white and natural wood colours are used on the rest of the interior. This79gives the mall an relatively relaxing atmosphere, different from the more aggressive salesenvironment which the customers meet inside each store.There are two areas in the mall which differ from each other. Most of the retailenvironment does not have natural light, instead bright spotlights are built into the ceiling.These shopping "streets" seems dark and totally separated from the world outside themall. Just one area of the mall has a four storey high glass ceiling. The first section of theceiling is painted in pink white colour, while the upper part is painted light green. The useof lighter colours toward the ceiling, gave the structure an airy, light feeling. Aside froma few green plants there is little else interrupting these big, bright walls. I found this areaso bright that it took away much of my attention toward the stores located in this area.The stores seemed to disappear in the spill of light. The contrast one experiences whenentering the other part of the mall seemed more dramatic than would be the case if bothareas were provided with a combination of natural and artificial light. These contrasts mayunconsciously interrupt customers while they walk through the mall, and may influencetheir purchasing decisions. On the other hand, this break in the shopping centreexperience may give the customer new energy to continue his or her shopping route. Ithad the former effect on me.VACANCY Table 11 shows the vacancy rate as a percentage for Capilano Mallfrom 1971 to 1991. This was a turbulent period, with everything from no vacancy to 24.4%of all leasable units vacant. The two major changes that happened in this period occurredin 1982-83 and in 1985-86. There was a 6.7% jump in vacancies from 1982 to 1983. This80was the time that British Columbia was struggling with an economic recession. Accordingto Capilano's manager, most of the tenants who moved during this time were forced outbecause of the downturn in the economy. The second major increase in the vacancy rateoccurred in the period 1985 to 1986. Here the vacancy rate increased from 6.7% to24.4%. This occurred at the same time that Capilano Shopping Centre went through amajor expansion. In 1987 the mall was 100% leased. The expansion and its positive imageno doubt had a role in this success. In 1991 Capilano Mall had a 6.3% vacancy rate with7 units not leased. Compared to the other malls for 1991, this was the fourth highestvacancy rate of the six.In the beginning of September 1992, I counted five vacant store locations in thisshopping centre. At three of the locations signs were put up to announce that newretailers were in the process of moving in.CHAIN STORES In 1971 Capilano Mall started out with a relatively high percentageof chain stores compared to the rest of the shopping centres in this study, approximately30% (Table 12). Not before the years 1986 to 1987 did the percentage of chain storesincrease remarkably, from 34.1% to 56%. This was the year when the centre went throughan expansion. In 1991 this shopping centre had nearly 60% of it's GLRA occupied bychain stores, the highest level compared to the other shopping centres in this study.TENANT MIX During the seventies and early eighties Capilano Mall had a lowpercentage of clothing and shoe stores occupying their leasable units (Table 13). In 198681when the centre underwent an expansion, the clothing and shoe store tenants increasedby 60%. This major increase reflected the shopping centre's preference for these typesof tenants. The percentage of clothing and shoe stores compared to the rest of the tenantcategories increased from 20% to 45%. From then on the level stabilized around 40%.In 1971 Capilano Mall had one food-serving tenant. The number increased slowlyduring the seventies and mid-eighties (Table 14). In 1985, the year before its expansionthe mall had, six food- serving tenants. One year after the expansion the number hadmore than doubled to fifteen. These figures were in 1991 relatively unchanged.In 1971 Capilano Mall had a relatively low 1.1 ratio, but it increased to 3.25 in 1976(Table 15). This increase was caused by an expansion of the centre in 1972 in which therentable units increased by more than one hundred percent. The majority of tenants thatmoved in during this period were goods related tenants. In 1981 the ratio was loweredbecause the centre experienced an increase in its service tenants. The centre wentthrough an expansion in 1986, following which the ratio rose to 3.0. Since 1987, the ratiohas been stable at a level just under LOUGHEED MALLLOCATION Lougheed Shopping Centre is also located in the Municipality ofBurnaby. Major roads like the Lougheed Highway, leading into Vancouver and thesouthern part of Coquitlam and Austin Avenue, leading to Western Coquitlam or ClarkDrive, running north, pass this centre. The centre is also located very close to one of the82Trans-Canada Highway's entrances and exits. This mall's central location allows it tobenefit from the high flow of traffic (Map 1).In north-east Burnaby, Lougheed Mall, border a neighbouring municipality of theDistrict of Coquitlam. Lougheed Mall must compete with retailers in the Coquitlam area(Table 3). Coquitlam has 2,957,789 total retail square feet, 44.0% of which is located inshopping centres. Lougheed Mall represents 26% of Burnaby's total shopping centrespace.As with Brentwood Centre, Lougheed is not located close enough to one of thetown centres to be able to benefit from the extra business it would create. However, thepositive attitude of the provincial government of putting the new Light Rapid Transit routethrough the Lougheed corridor, will be an obvious advantage for both of these centres(Table 1).Together, Lougheed Mall and Brentwood Mall account for 47.5% of the totalshopping centre floor space in the Burnaby area. When one considers that 42.0% ofBurnaby's total retail space is found in shopping centres, these malls market strengthappear quite good. However, because of their relatively close proximity to othermunicipalities, their pull effect on the retail market may be somewhat diminished.LAYOUT AND DESIGN Lougheed Mall is a two storey building located some onehundred meters from the Lougheed Highway. It is not easy to see the centre from theLougheed Highway, however, it is clearly visible to traffic travelling north on Austin Road.Signs and specially designed traffic lanes guide motorist into the parking lots which are83found either side of the centre. To the south-east side of one of the lots a bus connectionto a wide selection of destinations is offered. But the walk from the bus station into themall is practically non-existent. Pedestrians have to cross the bus station parking lot andthen walk along the parkade into the mall. Despite the use of yellow warning lines, thepathway from the bus station to the mall could have been more isolated from the trafficthan what is the case now. In addition, some weather protection is clearly needed. Thisis also the case for the pedestrians coming from the residential area, located just west forthe centre. There are eight highrise residential buildings and several lower units locatedwithin walking distance from the centre. This is a great market potential for the shoppingcentre. The developers of these projects have provided pleasant pathways on theirproperties to the shopping centre. But when the pedestrians meet the boundary of theshopping centre, very little effort is made to continue this pathway in the same style asis provided in the residential area. The lack of attention to this aspect of design is a goodexample of the how the layout and design of the shopping centre is configured more forthe automobile than the pedestrian.The shopping centre building is a combination of the older brick structures ofEaton's and Safeway, and newer concrete and glass sections which was added in 1989.Yellow-white with blue and red stripes are the colours used on the external walls as wellas on the glass roofs. These colours are also found inside the mall. There is no distinctdifference between the colours used outside from those used inside, which was the caseat Oakridge Shopping Centre. The internal design of the mall also differs from OakridgeShopping Centre in that there are different designs in different parts of the centre. The84food-court section and the marketplace called "Small Beginnings" vary from the rest of theshopping area. In the food-court section bright colours like neon red and blue are used,while the tenants as well as the eating area is crowded together to create a busy andfestive atmosphere. Food from counties like China, Italy, Mexico and Japan are offered.A old looking brick looking fountain decorates one of the walls, while another is decoratedwith a neon light picture. These different designs create a sense of place wheredifferent time periods as well as geographical locations are taken out of context andmixed together. A truly post-modern environment.The Small Beginnings is located in the other end of the shopping centre. Here themall has made an effort to create a new version of the traditional market place. Seven,push carts with a modern shape and stylish colours are assembled in the middle of themarket place. The wagons are surrounded by small stores selling everything fromjewellery to health food. The stores are small, and hidden behind the wagons. To get thecustomers attention, colourful canapes have been put up in front of each store. But theeffort to use an old retail concept in a mall environment lacks genuineness. The noises,smells, colours and the crowded chaotic feeling of a real marketplace is absent. Left wasa sterile environment, carefully designed, but without any real feeling of life. Even thename, Small Beginnings is negatively loaded. It indicates that the retailers here are themall's incubators, rather than "real" tenants, that this is an area in transition where thetenants are working to become something better.In addition to these two special areas, the shopping centre provides customerswith the shops which one can expect to find in a regional shopping centre. The centre85has located the two major anchors, The Bay and Woolco, at the south-west and northcorner of the centre respectively. They create a pull effect between them which thetenants located along the mall's corridors benefit from. The third anchor, Safeway, islocated at the west side which is the closest location to the residential area referred toearlier. The two major passages running north-south are decorated in relaxing colours likegrey, beige and steel-blue. The big trees and the skylight windows add to the bright andcheerful shopping atmosphere. This is also the case for the lower level of the mall, as thedaylight coming in from the roof is brought down by an open space to the second level.The hallways connecting the two major shopping ways are of a much darker character.The day light is gone, and replaced with a yellowish-pink light tube, partly hidden in theceiling. The centre has provided the customers with information signs and booths toimprove the shopping experience. Numerous benches are also offered in pleasant seatingareas in the middle of the shopping centre corridors.VACANCY Lougheed Mall had a stable vacancy rate of 3% at the start of the studyperiod (Table 11). In 1985 the vacancy rate jumped from 3.1% to 8.2%. This jump cameone year prior to the centre's 105,000 square feet expansion. The increase in the vacancyrate may therefore be related to this event. In 1987 there were no vacancies. One yearlater, the percentage of vacant units had increased to 8.1% or a total of 14 units. Sincethen the vacancy rate has remained relatively high at this level. This increase in thenumber of vacancies can not be related to any national or local recession nor to anyrenovation or expansion programs.86In 1991 the Lougheed Mall 18 vacant units, or a 9.8% vacancy rate. This gave theLougheed Mall the third highest percentage of vacancies compared to the other malls inthe study. But according to the mall's management the numbers listed in this year weretoo high and they claimed that 1991 was in fact a good year. On my trip to the mall inSeptember 1992, there were only 5 vacancies. It is hard to find an explanation as to whythe directory had such high number listed for 1991. But as stated earlier, without knowingthe date the survey was taken, inaccuracies such as this can occur.CHAIN STORES Lougheed Mall had a sharp increase in the percentage of chainstores from 1971 to 1983 (Table 12). In 1971 the percentage of chain stores was 24.4%.This figure nearly doubled by 1983. From that point to 1991 the percentage of chainstores stabilized at the relatively high level of approximately 50%. This was the caseexcept for the year 1986, when the centres went through a 105,000 square footageexpansion and the percentage dropped to 44.8%. In 1991 the percentage of chain storeswas back at a high level, 51.4%.TENANT MIX Lougheed Mall has a stable percentage of clothing and shoe storetenants from the late sixties to the mid-eighties, around 25% (Table 13). In 1986 theshopping centre went through an expansion. Approximately 40% of the new units thatbecame available were filled with clothing and shoe stores. Overall the percentage thesestores increased from 24.8% to 30.8%.87Lougheed Mall had nine food-serving tenants registered in 1971 (Table 14). Thisnumber did not change significantly before the 1986 expansion. Following the expansionthe number of these tenants more than doubled to a total of twenty-five. In the years afterthe expansion the number of food-serving tenants declined, and then stabilized at aroundeighteen outlets.From the early seventies to 1987 the Lougheed Mall has had a fairly stable goodsto service tenant ratio of around 2 (Table 15). In 1986 the centre went trough a 105,000square foot expansion and this caused the ratio to increase. Since then the ratio hasslowly increased until it reached a record level at 2.7 in 1991. It seems that the centre'spriority is to lease space to goods tenants.3.7.4. OAKRIDGE CENTRELOCATION Oakridge Shopping Centre is located in Vancouver, between two of thecity's busiest north-south arterial, Oak Street and Cambie Street. 41st. Avenue carrieseast-west traffic past the centre's north side. This is a busy area of Vancouver wheretraffic coming in and leaving the city results in significant customers traffic in the mall(Map 1).Oakridge with its 572,500 square feet accounts for 27.3% of the total shoppingcentre area in Vancouver. Although it represents a high proportion of the total shoppingcentre industry in the municipality, this is not to say that it does not have manycompetitors in the area. There is a large number of other retail outlets not located in88shopping centres which compete directly with Oakridge Centre. Robson Street indowntown Vancouver, 41st Avenue in Kerrisdale and 4th Avenue in Point Grey are buta few examples. There is also Pacific Centre in downtown Vancouver.When the shopping centre square footage is compared to the estimated populationof Vancouver for 1991, there is found to be only 5.0 square feet of shopping centre spaceper. capita. Thus, while shopping centre space in Vancouver is fairly low (on a per capitabasis), Oakridge, with it central and easily accessible location, make a fairly dominantforce in the market.LAYOUT AND DESIGN The red brick building of the Oakridge Centre is easy tosee from the road because of its tall distinctive design. It stands in stark contrast to manyof its neighbouring buildings. There are four entrances from the two major roads whichlead into the parking lots. Because of the centre's location, parking is divided into smallersubdivisions surrounding the centre's sides and on one multilevel parking lot. The mallis easily accessible from the parking lots. The distances are not far and traffic securityregulations are provided. The mall entrances are also easily seen by signs and distinctivearchitecture. The northeast corner of the building is the only part of the building whichmakes use of glass walls. This makes the transition from outside to the inside lessdramatic, because both environments can be viewed without actually entering them. Thisis a fairly unique architectural design, which connects the internal mall environment withthe busy street environment outside. The other sides of the buildings are in keeping with89traditional mall design. There the entrance is the only part of the wall which signify whatone can expect by entering the mall.Oakridge has located the two major anchors, Woodwards and Safeway on thewest and east sides of the centre. Together with the office towers to the northeast, thesethree locations create a triple pull effect. There are four major mall streets which leadpedestrian traffic through the mall. The layout has been made more complex by theadditional streets which lead traffic back and forth from the main entrances.Red brick is the primary building material used on the external walls of the building.Warm colours, like the brown-red colour which is used at Oakridge has the capability toattract customers attention and to draw them to the source (Bellizzi & Crowley & Hasty,1983). According to Bellizzi, Crowley and Hasty (1983) in the article The Effect of Coloursin Store Design", the colours used outside a retail structure should differ from those usedinside. When customers are inside the shop or shopping centre, more relaxing colourssuch as blue or grey, should be used so that they take the time to decide on theirpurchases. Inside Oakridge centre, cool colours like white, grey and steel are used.Greens were seen represented in the big tress. Some tenants had used brighter coloursat their store fronts, no doubt intended to draw customers attention. However, becauseof store's rules concerning frontage, the importance of these efforts are limited.It is interesting to note that at the time of this study the two main shoppingcorridors in this centre employed slightly different colours schemes. The south corridor,which hosts more exclusive tenants than the north corridor, is not colourful. By contrast,in the north corridor, the same ceiling had the same colours on the floors and the walls,90but a splash of colour was added with flags attached to the light fixtures. A large clocktower with all of the province's flags also added to the colour scheme. This slight changein design gave the north street a more lively and crowded atmosphere. It is suggestedthat this design, to some degree, stimulates customers to some extent. The south streethad a more austere atmosphere which perhaps might induce reflection on the part of theconsumer.Compared to the other shopping centres in this study, Oakridge seems to haveemphasized design and especially colours. These aspects of its design creates a senseof quality and perhaps exclusiveness.VACANCY From the 1961 to 1985 Oakridge has had few vacancies (Table 11).However, 1985 saw a significant increase in vacancies from no vacancies in 1984 to 19in 1985. This change occurred the year following the mall's facelift and expansion in 1984.In the years that followed, the vacancy rate decreased, to 1989 when 5.6%. 10 In 1991this rate decreased again and as a result, the centre had the third lowest vacancy rateamong the other centres in this study.In the beginning of September 1992, Oakridge Centre had nine vacancies. Threeof them had signs up announcing that new tenants were moving in.10 The number of vacant leasable units do not include the two office towers.91CHAIN STORES Oakridge Centre has seen a steady increase in its percentage ofchain store tenants through the years (Table 12). In 1961, 15.2% of its stores were chains.This figure increased to approximately 50% by 1991. Although the number of chain storesafter the 1984 expansion increased significantly, the percentage of chain stores comparedto the total number of tenants that occupied the mall only experienced a modest increase.In 1991 the centre had approximately 49% of its tenants as chain stores.TENANT MIX Compared to the other shopping centres in this study, OakridgeCentre has had a high percentage of clothing and shoe stores as their tenants (Table13)." Through the eighties it has had a mid 30% to 40% share of tenants listed in thiscategory. The leasable units that became available after the 1984 expansion were filledwith 35% clothing and shoe stores. However, the overall percentage of the clothing andshoe stores in the mall compared to the rest of the tenants decreased in this period. Thecategories that increased during this time were such things as personal services and foodand beverage places.In 1961 there were only three food and beverage outlets at Oakridge Centre (Table14). This accounted for 6.5% of the total number of tenants. This figure increasedsignificantly following the centre's 1984 expansion. Before the expansion only one foodserving tenant was listed, while in the years after the expansion the number had risen to" The numbers and the percentages used in this illustration do not include the twooffice towers that were connected to the centre in 1986. The two towers do not offerspace to retail businesses and will therefor give a wrong impression if they were includedin this particular section.92well above ten. In 1991 there were no major changes to the number of food-servingtenants.Oakridge Centre started out in 1961 with a relatively high goods to service ratio at2.8. The level decreased to 1.6 during the 1971 to 1976 period, due to a slight increasein the service and "exclusive" category and a lowering of the number of goods tenants.From that point the level increased and then stabilized around 2.6. Before the mall'sexpansion in 1984 there were few marked changes in the ratio. Following the expansion,the ratio increased to a high of 3, but then changed when the office and medical towerswere connected to the shopping centre. This seemed to influence the ratio dramatically,because since 1986 the ratio has declined steadily to the point where it is the lowest ofall the six shopping centres in the study, 0.9. 12 In 1991 Oakridge Centre including theoffice towers, had more tenants listed in the service category than tenants listed in thegoods category.3.7.5 RICHMOND CENTRELOCATION Richmond Centre is located, as the name implies, in Richmond. TheWestminster Highway lies to the north, while No.3 Road passes the Centre to the east.The Mall is located in a busy area of Richmond, where major roads bring traffic frommany different parts of the GVRD (Map 1).12 The ratio was 0.9 in 1991. The ratio would still has been at a relatively low level ifthe office towers were excluded from the data. (See Table 15).93Richmond Centre is located relatively far away from neighbouring municipalities.However, since a high degree of local residents commute to other municipalities, suchas Vancouver and New Westminster for work, its attraction to the local residents may tosome degree be reduced. Another factor affecting its market strength is the mall'srelatively close location to the U.S. The comparatively low prices and taxes as well as thegreater selection retailers in Washington State offer, is a tempting alternative shoppingdestination for Richmond residents.The Municipality of Richmond has a total of 4,892,522 square feet of retail area,and 39% is found in shopping centres (Table 3). Richmond Centre represents 28.5% ofthe total shopping centre area in Richmond. Comparing the estimated population forRichmond municipality to its shopping centre space, one finds that Richmond has 15.0square feet of space per capita. This is relatively large amount compared with the othermunicipalities in the Vancouver CMA. Richmond rates fourth in the amount of shoppingcentre space per capita in the Vancouver CMA.Richmond Centre faces significant competition from local malls and merchantsalong with competitors from neighbouring municipalities and Washington State.Lansdowne Park is located within two blocks of Richmond Centre. It has a GLRA of613,766 square feet and 143 stores. With its highly mobile population and relatively centrallocation it is difficult to determine the effect on its market strength.Richmond shopping centre is already at a town centre. It has an excellentopportunity to make optimal use of such a central location (Map 2).94LAYOUT AND DESIGN Richmond Centre has three different architecturalcomponents. The 70's style brown coloured Bay building, the made-to-look old, red Searsbuilding and the long, peach coloured building which connects these two anchors.Although much of the centre is set back on the property, it's grandness still makes thebuilding an eye-catcher for passers-by.The centre provides extensive parking on all sides of the building. In addition tothis, roof parking is provided in the northern section of the building. The south part of themall provides a four level parking deck. A pedestrian bridge leads people from the parkingdeck to the south part of the mall. Zebra stripes on the pavement and several path waysmake the trip from the surrounding areas as well as from the parking a relatively safe andpleasant walk. The centre has five main entrances into the centre at ground level. Tenantsthat are located facing the parking lot also have their own entrances to the mall. The roofparking lot also provides three entrances.The centre has three major anchors. Sears is located at the south-east corner ofthe mall, Zellers in the south-west corner and The Bay north in the building. Together,they create a triple pull effect. Although the centre's main mall-way pattern leads thepedestrian traffic in a north south direction, between the major anchors, there are severalstops located along the way. Smaller mall-ways leading east and west intersect with themain mall-way, creating several smaller plazas. Some of the plazas have smaller sky litdomes, which lends an airy feeling to an otherwise crowded retail environment. Thecentre's food-court is in the middle of a busy intersection. A large number of chairs andtables are squeezed together which creates a barrier for people coming in the north-south95and east-west direction. The pedestrian traffic must therefore pass by the food outlets.Because of the busy location, the size and the density of the seating area, the food-courtis an excellent place to watch people pass by. The food-court is also a noisy place, whichlimits any relaxing and reflecting qualities one might otherwise find there. It is a place thatalways reminds the users of their main purpose for being there, to entice them to shop.The always changing street scape, and interruptions to traffic flow, cause peopleto walk longer without noticing the distance they've travelled. Its a distracting design, andis useful at drawing attention to itself.One mall-way is distinctive from the rest of the mall-ways in that it looks like an oldEuropean shopping arcade. The two-storey high sky-lit ceiling gives the street a brightand airy atmosphere. Tall columns located along the street are decorated with fancy lightfixtures. Green palm trees and several benches are located in the middle of the streetwhich again breaks up the grand and exclusive atmosphere. By comparison, the adjacentwings have more artificial light fixtures partially hidden in the ceiling. However, the darkeratmosphere and lower ceiling, creates more pedestrian attention toward the shops thanthe atmosphere itself.VACANCY Richmond Centre has gone through two major expansion periods. Thefirst occurred during the years 1983 to 1985, and the second occurred more recently in1989 (Table 11). In the first expansion the vacancy rate was low, approximately 2%.During this time British Columbia was going through an economic recession. It should benoted that in 1981 , one year before the expansion, the vacancy rate jumped from 1.0%96to 6.5%. During the period prior to an expansion, tenants are often careful with renewingtheir leases because of the possibility of a rent increase. This change in the vacancy ratemay therefore have been in response to the upcoming expansion.The second increase in the vacancy rate occurred at the same time as the secondexpansion. The number of vacancies increased from 2.3% to 8.3%. It is interesting thatthe vacancies did not seem to decrease after the expansion. In 1991 a record number of20 vacancies were recorded. This represented 12.6% of all leasable units in the RichmondCentre at the time the survey was taken. It seemed that Richmond Centre had someproblems in finding suitable tenants for their empty space. In 1991, Richmond Centre hadthe highest vacancy rate of all malls in this study.On my trip to Richmond Centre in October 1992, there were only 9 vacancies and3 of them had signs up announcing new tenants moving in. I learned that they were notwilling to lease these units to short-term tenants. Therefore, it would appear that they hadbeen waiting for the right tenant to lease to.CHAIN STORES Richmond Centre went through a major increase in thepercentage of chain stores from the mid sixties to the beginning of the eighties (Table 12).Seventeen percent of its stores in 1966 were chains. By the 1983 this figure hadincreased to 53%. Despite three different expansions/renovations that the centre wentthrough in this period, the level of chain stores has not varied by any significant degree.The actual number of chain stores increased slightly, but because of the increase in thetotal number of tenants, the percentage of the total number of chain stores stayed more97or less the same. The percentage of chain stores remained stable at around 50%. In1991, the level dropped to 48.4%. This during the period after the centre went throughan expansion phase.TENANT MIX Richmond Centre has had a fairly high percentage of clothing andshoe stores among its tenants (Table 13). The percentage has stayed at a around the25% level from the mid sixties up to the last listings in 1991. The expansions that thecentre underwent in the mid and late eighties did not seem to affect the share of clothingand shoe store tenants as compared to the rest of the tenants. There have been somesmall adjustments, but it seems that the centre has been able to keep this aspect of itstenants mix relatively constant.Richmond Centre had only three food serving outlets in 1966 (Table 14). In theyears to follow the number of new eating places in the centre increased slowly, butsteadily, to the eleven outlets it had in 1991. The expansions which the centre wentthrough did not seem to influence the number of the food-serving tenants significantly.In 1966 Richmond Centre had a goods to service ratio of 2.5 (Table 15). One yearlater the ratio was 2.2. After this minor decrease the shopping centre had an increase inthe goods related tenants. The ratio reached a level over 4 due mainly to the annexationof the neighbouring shopping centre at 6060 Minoru Boulevard. In 1983, and in the yearsto follow, the centre went through a series of renovation and expansion projects whichcaused the ratio to fall. Interestingly enough, the ratio seemed to react oppositely when98the centre went through an expansion in 1989 as compared to the other centres duringtheir expansion. In 1991 the centre had a 3.8 goods to service ratio.3.7.6 SURREY PLACE MALLLOCATION Surrey Place Mall is located in the north of Surrey, in an area calledWhalley. The Fraser Highway merges with the King George Highway at the Surrey PlaceMall and then continues north-west to Vancouver over the Pattullo Bridge. Again, a centrallocation close to major traffic routes. But Surrey Place is different from the other shoppingcentres in that it soon will have a Sky Train station connected to it. The numbers ofpatrons this station will bring in will benefit the centre greatly (Map 1).Surrey Place Mall is located fairly close to the Municipality of New Westminster. ThePatullo Bridge and the Sky Train bridge lead traffic over the Fraser River and increasesaccessibility for local residents to the west. Metrotown as well as Downtown NewWestminster are considered highly competitive retail markets. New Westminster has atotal of 2,691,615 square feet retail area, of which 20% of it is located in shopping centres(Table 3). It must be noted that 58.5% of the shopping centre area in Burnaby is foundin Metrotown alone.13 Since Surrey Place Mall will be located relatively close toMetrotown, due mainly to the coming Sky Train linkage, it will become a majorcompetitor for Surrey Place Mall in the future.13 Metrotown includes three different shopping centres. The Eaton Centre Metrotown(631,000 sq.ft), the Metrotown Centre (650,000 sq.ft) and the Station Square (295,000sq.ft) are located adjacent to each other.99Surrey has 7,419,222 square feet of retail area, of which 41% is located inshopping centres. Surrey Place Mall with its 623,000 square feet represents 20.7% of thisdistrict's total shopping centre area. With its estimated 232,555 residents, Surrey has 13square feet of shopping centre space per resident. Surrey is eighth among the 15municipalities in the Vancouver CMA in terms of shopping centre space per resident.Surrey Place's major competitor in Surrey is Guildford Mall. When one considersthat Surrey Place's other competitors are concentrated closely around it, or are easilyaccessible despite being located in other municipalities, this mall faces significant marketchallenges.Surrey Place Mall is located west of Guildford Town Centre. It is too far a distanceto benefit from this centre's traffic and access to the freeway. But with its construction ofthe Sky Train station it is bound to become something of a town centre in its own right(Map 2).LAYOUT AND DESIGN The large concrete building which Surrey Place Mall islocated in, distinguishes itself from the surrounding environment. A large parking areaseparates traffic on the main streets from the centre. Little effort is made to connect theneighbouring residential area with the shopping centre. Although the distances are small,to my knowledge no convenient pedestrian paths have been provided. The shoppingcentre's white, blank exterior walls do not seem inviting to passers-by. However, theirdominant position in the landscape does catch peoples attention.100Two ground level parking lots are located to the north west and east corner of thebuilding. On the south side an underground parking facility is also located. The centrealso provides parking on the roof. In the parking lots, little traffic security is provided.However, closer to the entrances, zebra stripes on the pavement lead people into thecentres. Surrey Place Mall has three entrances on the upper level and one on the lowerlevel. In addition, four entrances are located close to escalators or elevators for peopleparked on the roof. Many of the tenants with a location facing the parking lots have theirown entrances. Some of the entrances are beautifully decorated with bright colours andlandscaping. The entrance at the north side guides pedestrian traffic arriving by busthrough a portal decorated with flowers. Decorative light poles, trees and brick pavementmake this entrance unique.The centre has four anchors, The Bay and Sears, each two stories, are located onthe east side of the centre, and Zellers and Extra Foods, each one storey, are locatedside by side on the south-west side of the centre. Together with the food-court, locatedat the north-west corner of the centre, they create a triple pull effect.The centres interior design seems to have followed the universal guidelines for aretail mall environment. The hallways are broad and covered with light grey coloured floortiles. Several sky-lights allow natural day light into the mall. In addition, artificial lightfixtures are partly hidden in the ceiling. Blue and red neon-light decorations are also acommon sight throughout the mall. The use of bright light and colours give the mall anshiny, clean and to some degree sterile atmosphere.101The food-court's seating area also follows the blue-grey-green colour scheme.Movable chairs and tables are placed throughout the area. A large sky-light lets the lightin, and on a sunny day several parasols provide people with shadow from the sun. Afountain is also located in the food-court and it breaks the sound of the food-court busyatmosphere. Although the mall's interior design is trendy and up to date, no attention isgiven to the potential view that the location provides. The magnificent view from the roofparking lot is left to the cars to enjoy.VACANCY Generally, Surrey Place Mall has had a relatively high percentage ofvacancies during its years of operation (Table 11). From 1980 to 1981, the first year dataare available, there was a vacancy rate of 27.8%. This increase was, to a high degree,caused by the 173,000 square foot expansion that the centre underwent in 1980. From1981 the vacancy rate decreased slowly all the way to no vacancies in 1985. But by 1990the rate had increased to 14.9%. This increase can again be related to an expansion thatthe centre went through in 1990. In 1991 Surrey Place Mall had a 10.3% vacancy rate, thesecond highest of the six shopping centres. In late September 1992, the centre had atotal of 19 vacancies, five of which had signs indicating that new tenants were in theprocess of moving in. According to the mall management, the centre was not interestedin filling their vacant units with tenants that could "harm" their image. New leases were putoff until the "right" tenants came along.102CHAIN STORES Surrey Place Mall had an increase in the percentage of chainstores in the 1981 to 1984 period, from 33.3% to 47.4% (Table 12). The centre wentthrough a major expansion in 1980 and this may be a reason for this increase. Thepercentage then dropped slightly to a lower level over the next two years. In 1985 43.9%of Surrey Place Mall's tenants were chain stores, in 1986, 42.1% were chains. From thatpoint the level climbed to a relatively high point where it stabilize at a high 40%. After theexpansion in 1990 the centre had an increase of twelve new retail chain stores. Butbecause of the increase in the number of tenants after this expansion, the percentage ofchain stores to the total number of tenants did not change significantly.TENANT MIX The first listing in the Street Directory for this mall was made in 1981(Table 13). At this time Surrey Place Mall had 25.9% of its tenants listed as clothing andshoe stores. Since then, with the exception of 1986, the percentage slowly increased. In1990 the centre went through an expansion. As a result of this the centre got twenty fivenew tenants. At the same time thirteen new clothing and shoe store tenants wereregistered in the centre. In other words, approximately fifty percent of the space thatbecame available at this time were filled with clothing and shoe stores. The overallproportion of these stores rose from 29.7% in 1989 to 34.1% in 1991.In 1981, Surrey Place Mall offered its customers two eating places (Table 14). Thenumber did not increase significantly before the expansion of the centre in 1990. In 1991the numbers had increased to seven.103Surrey Place Mall had a high goods to service ratio in 1981 (Table 15). The ratioeven increased in the next year from 5 to 7.4. In the following years the service categoryincreased slightly more than the goods category. This lowered the ratio and it stabilizedat a level between 2 and 3 for several years. In the period 1990 to 1991 the ratiounderwent a sudden increase. This was caused by the 50,000 square foot expansionwhich the centre went through. The new space was filled mainly with goods tenants.3.8 SUMMARYMy first findings from this study indicates that the shopping centre vacancy ratetends to be related to internal changes in the malls, such as expansion. It would appearthat all malls suffer from increases in their vacancy rates slightly before and afterexpansion. Some vacancy in the malls is related to economic downturns. In 1983, arecession year, only two of the six malls had an increase in their vacancy rates--Capilanoand Brentwood. Why only these two malls were more sensitive to the recession is aninteresting question. Did they have more locally based merchants with fewer resourcesthan a "national" to endure hard times? When one looks at the number of chain storescompared to independents, a clear picture still does not emerge. It could also be relatedto the characteristics of the residential area from which the two malls are drawing theircustomers. It is difficult to find an explanation for these differences, and my limited studydoes not provide me with enough data to find a conclusive answer. When the vacancyrate is used as an indicator for external changes, it is therefore of less value. Noconsistent pattern emerges.104The percentage of vacancies to the total number of leasable units has, for mostof the malls in the study, increased from the eighties to the beginning of the nineties. Ifthe changes in vacancy rate caused by expansions are excluded, most of the shoppingcentres in this study are operating with a higher degree of vacancies in the nineties thanthe earlier periods. The most recent year for which data are available from the VancouverCity Directory and Vancouver Suburban Directory is 1991. For three of the six shoppingcentres the vacancy rate was unchanged or had gone up, while at the other three centresthe rate has decreased from the previous year.Although some centres do operate with vacancies, the effort made by some of thecentres to avoid vacancies, hides the true figures. The managers of the six shoppingcentres report that they are struggling to fill their vacant space. Tenants, are no longerstanding in line.A second finding is that all six shopping centres have increased their percentageand actual number of chain stores over the time period of this study. Centres that startedin the sixties and seventies all had a very low percentage of chain stores as their tenants.The newer the centre, the higher the percentage of chain stores that they started up with.The eighties was a period in which shopping centres increased their number ofchain stores, but not necessarily at the expense of local tenants. This was also a periodin which most shopping centres went through expansions of their leasable space. Itappears that the number of chain stores increases for most shopping centres after theyundergo an expansion or renovation.105In 1991 the six shopping centres all had a relatively high proportion of chain storetenants. It is interesting to note that approximately fifty percent of all the tenants locatedin the six shopping centres were chain stores. The data do not indicate any dramaticchanges in the centres' proportion of chain stores in the 90's. But by looking atdevelopments from 1990 to 1991, it can be seen that only one of the centres, SurreyPlace Mall, had a major increase in the number of chain stores. This followed its 1990expansion. The other shopping centres have had only a modest increase, and in somecases, decreases in the percentage of chain stores.Since the data are not divided into national, regional and local categories, it is notpossible to see if there has been a change toward a higher concentration of any one typeof chain store. But according to the shopping centres' managers, the proportion ofnational chain stores in regional shopping centres is decreasing.A third finding is that if one compares the clothing and shoe store tenants with therest of the tenants, shopping centres have favoured a high concentration of the former.Some of the centres have favoured higher concentrations than others. Oakridge Centre,for example, started out in the sixties with a fairly high percentage of clothing and shorestores, while Brentwood Mall seemed to prefer a smaller proportion of the same tenantsduring the same time period. However, there is a common trend among all six centresin that they have increased the concentration of these tenants.The major increases that occur in the clothing and shoe store categories follow thecentres' expansion and renovation projects. All of the expansions that occurred in theeighties and beginning of the nineties resulted in a significant number of new clothing and106shoe store tenants in the centres. It is apparent that these shopping centres prefer thesetenants when the new leasable space became available. These preferences are closelyrelated to the shopping centre's relationship with the chain store organisations. A veryhigh percentage of the clothing and shoe stores are also national chain stores. Anaverage of 53% of all the clothing and shoe stores located in the six shopping centres in1991 belonged to a chain stores organisation (Table 16).My fourth finding in this study shows that food-serving tenants have become animportant part of the shopping centre environment although they are fewer in number.Relatively speaking, there has been a significant increase in the number of these outletslocated in all the centres. The major increases generally occur in conjunction with theexpansions of the centres. In the eighties it became popular to make room for a food-court in the mall. A specific area was designated for all the tenants that served food. Thearea was designed to house the tenants as well as provide the food-court customers witha comfortable place to eat. Only one of the six shopping centres did not have a majorincrease in the numbers of food serving tenants after an expansion, Richmond Centre.Finally, the study shows that the seventies was a period in which service tenantswere represented to a higher degree in shopping centres as compared to the later (Table15). Ten of the thirteen renovation and/or expansion projects that occurred at the sixshopping centres happened in the mid to late eighties. The expansions had a majorinfluence on store mix, and made the eighties a rather turbulent period for most of theshopping centres. The majority of the shopping centres107TABLE 16^NUMBER AND PERCENTAGE OF FASHION CHAIN STORESIN THE SIX CASE STUDIES.YEAR 1961 1966 1971 1976 1981 1982 1983 1984 1985 1986 1987 1988 1989^1990 1991BRENTWOOD MALL11 13 19 26 28 31 31 35 36 38 40 9^53 57TOTAL NO.OFCHAIN STORESHOOF FASHIONCHAIN STORESI 5 5 7 11 15 17 17 17 18 19 20 3^24 27% OF FASHIONSTORES OF TOTALCHAIN STORES 45 38 37 42 54 55 55 49 50 50 50 33^45 47CAPILANO MALL5 13 12 14 14 14 14 14 61 60 64 66 65TOTAL NO.OFCHAIN STORESNO.OF FASHIONCHAIN STORES 2 4 5 5 5 5 5 5 38 39 42 42 43% OF FASHIONSTORES OF TOTALCHAIN STORES 40 31 42 42 42 42 42 36 62 65 66 64 66LOUGHEED MALL21 29 38 42 47 47 45 47 87 88 90 98 94TOTAL HOOFCHAIN STORESNO.OF FASHIONCHAIN STORES 6 10 15 17 22 22 22 23 42 43 44 50 471 OF FASHIONSTORES OF TOTALCHAIN STORES 29 35 39 40 47 47^I 49 49 48 49 49 51 5077OAKRIDGE CENTRE7 8 9 14 16 16 17 17 58 62 67 73 79 77TOTAL NO-OFCHAIN STORESi^NO.OF FASHION1 CHAIN STORES 3 4 5 9^i 10 9 9 9 31 35 3 5 44 45 45 46% OF FASHIONSTORES OF TOTALCHAIN STORES 43 50 56 64 63 56 53 53 53 56 52 60 57 58 60RICHMOND CENTRE7 12 43 48 56 58 66^k 63 65 69 70 80 80 77TOTAL NO.OFCHAIN STORESNO.OF FASHIONCHAIN STORES 1 2 15 20 22 23 23 23 24 26 25 36 36 34% OF FASHIONSTORES OF TOTALCHAIN STORES 14 17 35 42 39 40 35 37 37 38 36 45 45 44SURREY PLACE MAL18 21 25 27 25 24 55 53 48 48 60TOTAL NO.OFCHAIN STORESNO.OF FASHIONCHAIN STORES 7 9 13 15 14 15 27 27 23 23 29S OF FASHIONSTORES OF TOTALCHAIN STORES 39 43 52 56 56 63 49 51 48 48 48NOTE:FASHION CHAIN STORE ARE CLOTHINGSOURCE:B.C.^DIRECTORIES.^1959 TO 1991.B.C.^DIRECTORIES.^1966 TO 1991.MONDAY REPORT ON RETAILERS.^1990.AND SHOE STORESVANCOUVER STREET DIRECTORY.CANADA.VANCOUVER SUBURBAN DIRECTORY.DIRECTORY OF RETAIL CHAINS IN108seemed to fill the new units with tenants that sold goods 14 . Oakridge Centre, theexception, emphasized more service tenants. When Oakridge incorporated the two officetowers with the rest of the mall, the goods to service ratio decreased significantly. Evenif we exclude the office towers from the data, there was a decline in the mall's goods toservice ratio. The majority of the six shopping centres had a concentration of goodsrelated tenants in the eighties. This is not surprising considering the greater incomepotential that these tenants represent.The average goods to service ratio for the six shopping centres in 1991 was 2.63,when the two office towers at Oakridge Centre are included, or 3.4 when the towers areexcluded. This means that in 1991 the six shopping centres had two and sometimes threetimes as many goods selling stores for each service selling establishment.14 . This is based on the findings that 5 out of the 10 expansion/renovations thatoccurred in the eighties, resulted in an increase in the goods to non-goods ratio after theevent. One of the expansions did not have data listed for the pervious year, and cantherefore not be recognized as a change. The remaining four expansions/renovationsresulted in lower ratios in the following year. Richmond Centre accounted for 3 of theseexpansions and they all occurred in a 3 year period. This series of expansions andrenovations did not produce a significant increase in the goods tenants. More than halfof the new non-goods tenants that located in the centre during this period were food-serving tenants.109CHAPTER 4ACCOUNTING FOR THE CHANGE4.1 INTRODUCTION In this section I will look at some of the causes behind the contemporary changesin the regional shopping centre industry. First, I will look at changes in consumerbehaviour which arise from such things as changes in the population structure, changesin people's spending power, people's living arrangements, their lifestyles as well as theirattitude towards shopping. This description will be followed by an illustration of the newcompetitors that regional shopping centres are facing. Thirdly, the changing economicconditions and the influence this has on the regional shopping centre industry will bediscussed. This will be followed by an illustration of how the change in chain storeorganizations influences the regional shopping centre industry. Finally, I will look at thechanges in the department store industry and how this affects regional shopping centres.4.2 POPULATION STRUCTURE AND CONSUMER BEHAVIOUR According to Statistics Canada (1992c), the percentage of the Canadian populationin the older age groups is increasing, while the younger population is decreasing.The first population trend that can be observed from Table 17 is a decline inCanada's young population. Approximately 12 percent of the Canadian population was110four years or younger in 1921. In 1951 and 1961, the percentage had increased due tothe higher birth rates after the Second World War. These children born in the post-warperiod from 1946 to 1964 have been dubbed "baby boomers", (I will return to this laterin this chapter). Ten years later, in 1971, the percentage of this age group had declinedto 8.4 percent. In 1991 the percentage of four years old or younger had decreased to 7percent. There has similarly been a decline in the Canadian population for the age group5 to 14 years old.The second trend that emerges is the significance of the baby boomers onpopulation shifts. As just mentioned, baby boomers were children born after the SecondWorld War. Following the War people were eager to start the families that were delayedbecause of the war. A relatively more mature population group was also in evidence. In1961, the baby-boom generation was still quite young. A higher percentage of youngpeople in the population was the result. Over time baby boomers moved into increasinglyolder age groups. In 1991, baby boomers could be found in the 27 to 45 years old range.In 1991 the percentage of people in the age group 25 to 44 reached a record level.Today, the bulk of this age group is essentially the middle age population. Not only is thispopulation group large in terms of numbers, its percentage share of the total populationis also dominant in comparison to all other age groups.A third trend related to an older population can also be seen in Table 17. Since1921 the percentage of people 65 years and older has increased, subject to some smalladjustments. While 3.3 percentage of the Canadian population was 65 to 74 in 1921, the111percentage increased to 7 percent in 1991. The change in population for people over 75years is even more pronounced during the period in question.TABLE 17^PERCENTAGE OF POPULATION BY AGE, CANADA,^1921-1991.AGE GROUP 1921 1951 1961 1971 1981 19910-4 12.0 12.3 12.4 8.4 7.3 7.05-9 12.0 10.0 11.4 10.5 7.3 7.010-14 10.5 8.0 10.2 10.7 7.9 7.015-24 17.3 15.3 14.4 18.6 19.2 14.025-34 15.3 15.3 13.6 13.4 17.3 17.935-44 13.3 13.3 13.1 11.7 12.2 16.045-54 9.1 10.0 10.3 10.6 10.3 11.055-64 6.0 7.7 7.0 8.0 8.9 8.865-74 3.3 5.4 4.9 5.0 6.1 7.075-84 1.2 2.0 2.3 2.5 2.8 3.685- 0.3 0.4 0.5 0.6 0.8 1.1SOURCE:STATISTICS CANADA.^1992. AGE, SEX AND MARITAL STATUS.CATALOGUE NO.93-310.4.2.1 FACTORS THAT INFLUENCE THE POPULATION STRUCTUREThree factors influence the population structure. They are the birth rate, themortality rate and the net immigration rate. It is relatively easy to predict the populationsof western developed countries because there are few additional factors such asepidemics and wars. The Canadian mortality and net migration rates are also easy topredict because of their close relation to health/medical care and immigration policy.112According to Statistics Canada (1987-1992), birth rates 15 have declined from thelate 1970's. However, in recent years there has been a small increase in the national birthrate. The Canadian population had a birth rate of 15.1 live births per 1000 population in1991. With such birth rates the Canadian population will not be able to naturally replaceitself. There are several important factors that have affected the birth rate in Canada: theage at which people marry is higher; and the percentage of people who decide to marryhas declined. Fewer people are getting married, and when they do, they are marryinglater in life. Also noteworthy is that the size of the traditional family has decreased. Thereare also more types of family arrangements today than ever before. All of these factorshave had the effect of pushing birth rates down.The number of unintended births in Canada has declined because of increasedawareness of family planning and birth control methods. The increasing availability andwillingness to use abortion as a method of dealing with unintended pregnancies has alsohad a negative impact on the Canadian birth rates.Women's roles in society have changed and this has had a major impact on birthrates. Increasing number of women are becoming active in the work force. This trend hasmeant that fewer women pursue traditional lives, staying at home and raising children. Formany working women, having children will result in too great an opportunity cost, andtherefore many forego the option (Statistics Canada, 1990a; Marshall, 1989).The death rate has also changed. People live longer and have a better quality oflife. This is due to improved health care and medical knowledge. In addition, more people15 Birth rate is the number of live births per 1000 population in a given year.113in the older age groups survive their parents. Again, this has a positive influence on thistrend for this age group.The net migration rate also influences the population structure. There is a constantflow of immigrants to Canada. Canada is know for its liberal immigration policies whencompared to other western countries. According to Statistics Canada, Canada had thelargest inflow of immigrants in 35 years in 1991, helping it to achieve the highestpopulation growth in the industrialized world (The Vancouver Sun, 1992b). However,historically Canada is actually experiencing less immigration than it did only a short timeago. Immigration policies have lately become more restrictive.4.2.2 SUMMARYAs Table 17 shows, there has been considerable growth in the older part of thepopulation in Canada. These numbers will increase in the future because of improvedaverage life expectancy and because of the aging baby-boomers entrance into this agegroups. The middle aged population, or baby boomers, who are now in their primeworking years, form a higher percentage of the total population. In the future they will alsoplay an important role in the population structure, although they will move upwards on theage scale. Children and the young adults represent a small portion of the total population.The chances that birth rates will continue to fall is high. This is due to the current agedistribution in the Canadian population which is declining. If birth rates continue to movein this direction, this part of the population will experience further declines.114In the future, therefore, Canada will have large numbers of older people with fewermiddle-aged adults, who will have fewer children than their parents had the generationbefore.4.3 SPENDING POWER Peoples habits are more or less governed by their income. I will therefore use datafrom Statistics Canada which shows peoples average income according to age groupsto look more closely at the concept of peoples shopping habits (Table 18).4.3.1 THE YOUNGAccording to Statistics Canada (1991b), young adults, aged 15-24, have thelowest average income per person in Canada as well as in British Columbia. Eighty-sevenpercent of the Canadian population that is 19 years or younger earned less than $ 10,000in 1990. Of people aged 20-24, 54% earned less than $ 12,500 in 1990. This relatively lowincome rate is not surprising since many of these young people are still in school at thisstage in their lives. Nevertheless, it is clear that this segment of the population has lowerspending power (Wannell, 1989).115TABLE 18^AVERAGE INCOME FOR INDIVIDUALSBY AGE, CANADA AND BRITISH COLUMBIA,1990.AGE GROUP CANADA B.00-19 5,095 5,18520-24 13,730 14,27825-34 24,298 25,08035-44 30,276 31,69145-54 31,446 35,36655-59 27,078 29,04360-64 23,761 25,65665- 17,640 18,414SOURCE:STATISTICS CANADA. 1991.INCOME DISTRIBUTION BY SIZE IN CANADA.CATALOGUE NO.^13- THE MIDDLE AGEDStatistics Canada (1991b) listings for the average income for the middle ageworking population, age 25-64 is significantly higher. For people in the from 35-54 agegroups, Statistics Canada list them as the highest average income earners in Canada.Fifteen percent of the people aged 35-44, and 17% of people aged 45-54 had an incomeof $ 50,000 or more. No other age groups were as well represented at this income level.This middle-aged group or baby boomers as mentioned earlier represent a largepercentage of the total population. Large numbers with high incomes mean significantspending power in the Canadian economy (Statistics Canada, 1991a).1164.3.3 SENIORSAccording to Statistics Canada (1991b) the elderly population, defined here as 64years or older, fared better in terms of average income than did the younger population.However, they were significantly below the middle-aged group for this year. Fifty-sixpercent of seniors had income greater than $7,500 but less than $ 17,500 (Devereaux,1987).4.3.4 SUMMARYWith its aging population and disproportional distribution of income, Canada's retaileconomy will for years to come be heavily influenced by the middle-aged/baby-boomergroup. Although young people's average incomes will increase in time, due to highereducation and/or experience in the work force, current trends would seem to indicate thatfewer of them will earn incomes as high or higher than their parents. At the same time,the relatively small size of this age group will most likely mean low average spendingpower for the group in general. This younger group will continue to have relatively weakerbuying power over time. At the same time, although the high income "boomers" tend tobuy more and favour expensive merchandise and services, there is no guarantee that thiswill continue as this group ages. Freedom is the key word to understand this middle-agedcrowd. They have and will continue to have, the freedom to buy what they want, but atthe same time they have the freedom not to buy. They have and will continue to have,more money than the younger groups, but over time they will not need to spend as117much. After all, they already have their houses, cars, furniture and TV-sets. Their childrenwill grow up and will be out of the houses. The need to buy will be considerably reduced.It is fairly clear that middle-agers, and to some extent the seniors, will be the mostdominant consumer group in the future. They are the ones that have the resources,namely time and money.4.4 LIVING ARRANGEMENTSIn the next section I will take a closer look at the various living arrangements inCanada, and describe how they have changed in the past two decades. I will thendescribe some of the factors behind this development. Finally, I will comment on howthese changes may influence consumer behaviour in the future.Canadian living arrangements have become increasingly diversified and unstable(Statistics Canada, 1989b; Devereaux, 1990; Stout, 1991). Recently new forms ofhouseholds have become common that only a short time before were unheard of.Increasingly, fewer people have been forming the "traditional" family arrangement.Since the end of the baby-boom period in the early sixties, family and householdsize have changed significantly. The traditional arrangement of husband and wife with twoor three children, and with the husband as the main bread winner, is now only one ofmany family arrangements. Although the traditional family concept is still an important partof the current living arrangements, family size has decreased in recent years, and familymembers' functions within the family have changed. In addition to the changing familystructure, new families and households that were statistically not visible twenty years ago,118are today challenging the traditional family concept. Double income families, common-lawhouseholds, single parent families and independent households are some of the importantliving arrangements that I will deal with in the following section (Statistics Canada, 1990a& 1992b).4.4.1 DOUBLE INCOME FAMILIESA growing number of dual parent families have both adults active in the workforce.This increase is mainly due to the adult increased access and participation of women inthe labour force. According to Statistics Canada (1990a), the percentage of marriedwomen with at least one child under the age of six in 1971 was 27.1% Fifteen years later,the percentage had increased to 59.5%.The increase of women in the work force, has had a major impact on their families.The time and money that goes into mothering has increasingly become a function ofopportunity costs. We are therefore witnessing an average decrease in the number ofchildren in these families. The improved economic independence that women are nowexperiencing can also be related to the increase in the Canadian divorce rate. Divorcebecomes a more realistic option for women with their own careers and income than wasthe case before when women were more economically dependant on their husbands.4.4.2 SINGLE PARENT FAMILIESAccording to Statistics Canada (1990a, p.70), in 1961 there were 347,000 familieswith only one parent in Canada Twenty-fife years later in 1986, the number had more than119doubled to 854,000. Although some of these households are widowed, most of thisdramatic increase was caused by an increase in divorced parents and mothers who nevermarried who were taking care of their children. In 1961 only 4% of the families listed byStatistics Canada had a divorced head of the family. In 1986 almost 30% of families wereheaded by a divorced parent. The change in percentage for mothers who never wed rosefrom three to thirteen percent in the same time period. A large proportion, 82% of singleparent families had a female head in 1986. The likelihood that these women will havemore children if the living arrangement remains the same would seem to be low.4.4.3 COMMON -LAW HOUSEHOLDSThe number of common-law households in Canada has increased dramatically inthe last decade. Changing social conditions has made this living arrangement aincreasingly popular option. According to Cam Stout (1990) 4% of all Canadians agedfifteen and over lived in common-law unions in 1981. In 1986 the percentage hadincreased to 5% and by 1990 the level had reached the 8% level. This form of householdwas, according to 1986 census, most popular among the younger generation. Manyyoung couples view this arrangement as a good "trial-run" to a legal marriage, whileothers viewed it as a permanent arrangement. There are also those who had alreadybeen through a legal marriage, and wanted to avoid the same emotional experience andeconomic hardship of a second divorce.1204.4.4. SINGLE OCCUPANCY HOUSEHOLDSThe number of single occupancy households has increased among young peoplerecently. These households are an important part of the transition from living at home withone's parents, to an independent adult life. Such households are also increasing amongthe elderly population, age 65 and over, due mainly to greater average life spans amongwomen and the relatively low incidence of remarriage. According to Statistics Canada(1990a) 15% of the people living in single occupancy households were women aged 65or over. In 1986 the percentage had increased to almost 34%.4.4.5 FORCES BEHIND THE CHANGEAs the examples above illustrate, current living arrangements are complex andunstable. But what has caused this development to occur? First, women's participationin the work force has created large group of economically independent individuals. Thetime that working women spend in the home with children has decreased. Secondly, theemergence of "consumerism", particularly in the eighties, has brought with it increaseddemand. Two incomes in a family are now necessary in order to fulfil these needs. Thesocial relationship among traditional family members is another force behind the change.Today, more and more husbands and wives have relationships based on equalpartnerships. At the same time individual family members tend now to be more self-oriented than towards the family, as was previously the case. This has increased internalstresses in families. The increasingly self-oriented approach among parents has alsoreduced some of the impetus behind having more or any children. And finally, a121significant factor to the change has to do with people's knowledge and attitudes towardscontraception. Today, pregnancy before marriage does not necessarily lead to marriage,as it often did before. Use of contraceptives and more liberal attitudes towards abortion,have broken the connection between pregnancy and marriage, and thereby taken awaya major factor that previously drove people to marry (Statistics Canada, 1990a & 1992b;Stout, 1991).4.4.6 SUMMARYThe diversity and variability of living arrangements have a major impact on peoples'buying patterns. Perhaps the most obvious impact is the increase in the number ofconsumers. But not only has the number of households increased, their buying patternshave also changed greatly. At the same time, household members have in generalbecome more individualized in their approach to life in general and shopping in particular.One reason for this is that families now have vastly different time schedules. Thishas resulted in more members of households becoming consumers, whose individualizedconsumption is increasing as a result of their self-interested manner of existence. The timewhen mom did all the necessary shopping is long gone. Today each family member hasbecome more involved in our own shopping routine. Retailers as well as malls haverecognised this change by endeavouring to cater to all members of the family. Today, thestores, the products as well as the services are, to a higher degree, designed to supplyone person consumption needs. Small personal cars, one person "TV dinners", televisionnetworks providing 24 hour news casts are but a few examples of how retailers are122attempting to cater to individual consumers (Engel & Blackwell & Miniard, 1990). Althoughshopping centres are still viewing women as their predominant target market, theynevertheless are trying to provide a shopping environment which caters to a wider rangeof women or particular lifestyles (interview with Lorne J. Braithwaite).Good quality and low prices are a crucial factor that determines buying patternsfor some households. According to a recent study made by The National Council ofWelfare, one out of every seven Canadians live below the official poverty line (Hemsworth,1992). Hardest hit are single mothers. Price and quality are therefore particularly importantin such households. The increase in the numbers of single family households hasincreased the demand for bargains and big-bulk savings. People who have to beconcerned about money are not interested in paying for expensive presentation andpackaging of merchandise. Although many household are forced to be concerned aboutprices and looking for bargains, more well-off consumers also do not mind a goodbargain. The emergence of big-bulk sections in the traditional supermarket as well as thegrowth of factory outlets connected to malls, demonstrates retailers response to thismarket segment.For other households time rather than money has become the important factor inthe shopping process. Dual income households tend to value convenience and goodservice above price. The increase in smaller specialty stores, and the increase in thebreadth of the service industry are examples of the growing importance of this marketsegment in the retailing industry.123Although the examples mentioned refer to only a few of the different livingarrangements and their influence on consumer behaviour, they nevertheless illustratesome of the important new challenges retailers as well as malls are dealing with now andin the future.4.5 LIFESTYLES The term "lifestyle" is complex and difficult to define. Many components make upone's lifestyle. In this study I will define lifestyle as; "...patterns in which people live and spend time and money.They are function of consumers' motivations and priorlearning, social class, demographics, and other variables.Lifestyle is a summary construct reflecting the values ofconsumers (Engel & Blackwell & Miniard, 1990, p.342).People's lifestyles are an outward reflection of their understanding of the world aroundthem. One's lifestyle changes in response to a changing environment. It becomes adynamic tool that one adopts in response to the changing outside world.It is of great importance that retailers as well as malls pay attention not only todemographics and spending power, but also to the customers lifestyle. Retailerssometimes find new and exciting markets by just focusing their strategies on lifestyle. Alarge proportion of retailers and malls have neglected this aspect of the consumerbehaviour, with the result being similar looking stores and malls that fail to focus on theuniqueness present in the market they serve. This effect frequently occurred, for example,when the department stores expanded to the suburbs, and the new stores became124copies of the original store downtown. They treated the suburban population as ahomogenous group, not as a group with different lifestyle.In the following section I will put forward some examples of different consumerprofiles specifically in the context of their buying habits. The examples will be based onArnold Mitchell's lifestyle theory (Mitchell, 1983). I will then relate these groups to thegeneral population in Canada and reflect on how they may influence consumer behaviourin the future.Although there are numerous lifestyle theories, I have chosen to use Mitchell'stheory which relates people's lifestyle to their buying patterns. According to Mitchell, aperson's values are "...the entire constellation of a person's attitudes, beliefs, opinions,hopes fears, prejudices, needs, desires, and aspirations..." (Mitchell, 1983, p.VII).Together, these factors govern our behaviour and lifestyle.4.5.1 LIFESTYLES AND CONSUMER BEHAVIOUROne's lifestyle is governed to a large extent by the living arrangement one adopts.There appears an increasing tendency for people's lifestyles to become more and moreself-oriented. Ironically, many people have, at the same time, become more aware ofimportance of community and togetherness. They focus on the responsibility we have toour environment and the society at large. Both lifestyle groups express membershipthrough their action and visual appearance. The visual expression of one's lifestyle isfrequently accomplished through consumption of goods and services. Shopping centres125reflect these patterns in their creation of environments intended to cater to particularlifestyles. The emergence of specialty stores that cater to one niche of the market is butone example of the retailers current efforts to cater to changing lifestyle patterns (Engel& Blackwell & Miniard, 1990).4.6 CONSUMER ATTITUDES Perhaps most important of all factors influencing our consumer behaviour is ourattitude towards different merchandise as well as towards shopping as an activity in itself.Consumer attitude is "an overall evaluation that enables one to respond in a consistentlyfavourable or unfavourable manner with respect to a given object or alternative" (Engel& Blackwell & Miniard, 1990, p.304). Increasingly, studies show the link between changesin attitudes and one's buying decisions.Our attitudes towards shopping can be influenced by several factors. The changefrom shopping being an activity to satisfy primary needs in earlier days, to shopping asan activity to satisfy our wants or desires today, has influenced our attitude towardsshopping. The changing understanding of what is valuable in the marketplace also hasan impact on ongoing attitudinal development. Consumers increased knowledge andawareness of products and how they buy has also changed our attitudes. Finally, thedegree of consumer loyalty has changed our attitudes towards shopping.In the following section I will look at changes in the factors influencing consumerattitudes, and how this in turn affects attitudes towards shopping. I will then briefly discuss126how the changes in consumers attitudes have influenced retailers as well as shoppingcentres.4.6.1 THE TRANSITION FROM A "NEED" TO A "WANT" DRIVEN CONSUMERBefore the Second World War people shopped mostly to satisfy their primaryneeds. People for the most part did not have enough money to buy goods to fulfil theirdesires nor did the market have many such goods. After the War people began earningmore money and consequently had more to spend on an increasingly wider and greaterselection of goods and services. Today, shopping has become a fairly complex anddiffuse activity. A small proportion of the goods and services offered by the retailers todaysatisfy our primary needs. The largest proportion of the goods and services sold satisfiesour "wants". People no longer ask themselves "what do I need?", rather they ask "whatkind of things should a person like me want?" People are looking for goods that can givethem a certain lifestyle self-image. For example, exotic food can bring the taste and feelingof being in another country to the dinner table. A person's "wants" reflects his or herpassions as well as his or her affection or interest in a particular item or service. Theseare all vague and complex parameters and it is therefore difficult to measure and quantifythe motives that lay behind many purchases made today, as compared to when ourshopping patterns were more a function of our needs (Engel & Blackwell & Miniard,1990).1274.6.2 VALUESConsumers demand more from shopping experience. People are no longersatisfied by getting good value for the goods and services they bought, they also wantsomething in return for the time and effort spent looking around for the right goods.Consumers are basing their shopping decisions on factors which in the past have hadlittle relevance to shopping itself. Merchandise's quality, the retailers location as well asthe price that the goods and services are offered at are the traditional factors thatinfluenced the shopping process. In addition to these factors, now such things as timespent on shopping, the shopping experience as well as services provided are importantnew factors in the equation. Consumers in the nineties are demanding more from theretailers and the malls than ever before. Some people cannot afford to spend much timeon shopping and require convenience and good service from retailers and malls. Otherpeople can spend more time at the shopping process and require that shopping in itselfbecome an experience. These factors are why we are witnessing today a more variableand complex approach of dealing with consumers (Engel & Blackwell & Miniard, 1990,p. 338; interview with David Turner).4.6.3 EDUCATIONAfter the Second World War, people began to shop more frequently. Shoppingbecame an experience in which the retailers taught consumers what and where to buythe "right" merchandise that would signify their position in the society. At this timeconsumers came to retailers to learn. It was the producers and the distributors that were128in control of what goods and at what price they were offered. Today consumers are betterinformed about the products they buy. They are also more astute with respect to marketcomplexity. People are becoming increasingly critical of production methods andpresentation. As an example, people are more aware of environmental issues, anddemand that products meet certain standards. A recent demonstrations in Toronto(November 15 1992) against the use of cheap, non-union labour, in a part of the garmentindustry is but one example. People that participated in the demonstration suggestedconsumers boycott the merchants selling such fashion goods to show their loyal supportto the underpaid workers. Many consumers have turned their backs on the eightiesconsumerism and materialism, and have become more conscious and careful of whatthey buy. Today the value they want when they buy merchandise includes environmentallyfriendly ingredients and production methods as well as fair pay to the labour forcesinvolved in the production. The educated consumer has become a challenge to the mallsand the retailers. They must put themselves into the consumer's shoes, so that they canunderstand them better. By doing so the retailers and the malls can become moreinnovative and forward- looking instead of always being static or one step behind the newtrends in society (Engel & Blackwell & Miniard, 1990).4.6.4 LOYALTYFormerly, many consumers had stores that they could call "my store". In recenttimes, because of the wide selection of substitute goods and the high number of retailers,people are, to a lesser degree, loyal to their old neighbourhood stores. They tend to shop129where they believe they will get most satisfaction and value for their money. But on theother hand, because time has become more valuable than money for some people, manypeople have changed their loyalty from the small stores to the retailers in the malls.People no longer have time to shop around and return their goods if they are not satisfiedwith what they bought. Merchants that know their customers and provide them withpersonal service, good quality products and convenience can again depend more on theloyal customers. This is the case for merchants serving one part of the market, the restof the retailers do have to depend on other strong pull strategies to get their share of theconsumer dollar (Engel & Blackwell & Miniard, 1990).4.6.5 CONSUMER ATTITUDE AND CONSUMER BEHAVIOURThe transition from a mainly need driven consumer to a "want" driven consumerhas changed consumer behaviour significantly. These changes require that retailers andshopping centre management improve their understanding of consumers (Kilgour, 1990).They have to understand the psychology of the consumer, their personalities, their imagesand their associations to particular lifestyles. They will find that consumers demand moreproducts as well as a wider selection. Consumers will also require that more newproducts and services be introduced into the market at a higher speed than before. Thiswill require a shorter product life cycle as well as a dynamic business policy from theretailers and the mall management. Because the wants have a more divergent character,more efficient pull strategies will be required of the retailers and the malls to get theirshare of the consumer dollar.130Changes in the consumer's perception of value is another aspect the change inconsumer behaviour (Kircher, 1990). Because of the large numbers of stores andproducts competing of the same consumer dollars, consumers can afford to demandmore from retailers and shopping centres today than ever before. Today, consumersdemand that the time and effort spent looking for the right item should bring them asmuch satisfaction as the purchasing act itself. Not only must malls providing an areawhere all the retailers are conveniently arranged, consumers require that going to the mallbe an experience in itself. Though not always at the same time, consumers also requirethat shopping should be fun, exciting, educating, stimulating and entertaining (interviewwith David Turner).Consumers are becoming increasingly educated and informed about variousproducts. Consumers will demand that producers, distributors and malls respond to theirproduct needs. These groups must constantly follow up with new marketing strategiesthat will satisfy this educated consumer. This will be achieved through more opendialogue between the producers, distributors and the consumers they are catering to.Consumers will therefore become more aware of marketing activities and be able torespond to them more quickly.The degree of loyalty among customers toward retailers and shopping centres isanother aspect of consumer behaviour. To become a loyal customer, people require thatretailers and malls give them a reason to come back. The benefit of going back to oneparticular mall or retailer has to be greater than the benefits offered by competitors.Coupons and frequent purchase benefits are some of the aggressive pull strategies131created by some retailers and malls to create customer loyalty. Specializing in certainproducts and services is another strategy. In general, consumers are more demandingof retailers and malls than ever before (Sweeney, 1991). The pressure to gain customerloyalty in the future will become more intense.4.7 NEW COMPETITORS Despite the dominant position the mall has had in the Canadian retail industry, thisdoes not necessarily mean that this is a trend that the market will continue. Indeed thereare signs that regional shopping centres are presently, and will continue to face anincreasing number of direct competitors to the regional shopping centre industry.Unplanned shopping areas as well as the increasing variety and number of distinctiveplanned shopping centres threaten regional shopping centres' market position. Althoughthese new competitors are different in many ways, they have some commoncharacteristics. The development of retail centres have, until recently moved in oneparticular direction, retail centres have become increasingly complex and diverse (Forbes,1992a). However, the new centres seem to be developing in a polarized manner. Thereis an increasing number of retailers that emphasize either low price and no service, orhigh prices and many services (sweeney, 1991).Some of the types of centres that are currently emerging include warehouse/powercentres, super regional town centres, specialty centres, factory outlets and non-anchoredlifestyle centres (Forbes, 1992a).132Compared to the warehouse/power centres, the regional shopping centre isusually placed in a weak position. The attraction of these centres is a combination of lowprices and product dominance in specific product categories. National brand nameproducts are offered here at discount prices. The customers of these centres, must bewilling to sacrifice service and convenience. According to several retail consultants16 thefuture for these centres seems bright. They are expected to be the fastest growing retailcentres in Canada for the next ten years (Mitchell, 1992).Regional shopping centres on the other hand, to a large extent, offer the sameproducts that are offered in the warehouse/power centres, but generally at a much higherprice. As a reaction, regional shopping centres show increasing interest in welcomingcategory killers into their centres. An example of this is Cambridge Shopping Centres'recent agreement to lease space to the American owned category killer Pacific Linen(interview with Lorne J. Braithwaite and James Badour).Super Regional Town Centres are another major competitor of regional shoppingcentres. These centres generally provide a wide selection of goods and services. Inaddition to a strong retail components including category killers, these centres also househotels, offices as well as residential units (Forbes, 1992a). The centres not only offer "one-stop-shopping" opportunities like most regional shopping centres, they are practically a"one-stop- living" opportunity. Eaton Centre at Metrotown in Burnaby and ScarboroughTown Centre in Ontario are examples of Super Regional Town Centres. Regional16 For example Ian Thomas, president in Thomas Consultants Inc., Vancouver andLeith Moore, vice president of The Sorbara Group in Toronto.133shopping centres not only come up short in terms of price, they also lack the variety intheir GLRA (Neil, 1992; Doocey, 1992b).The tenants in Specialty Centres usually specialize in one particular segment of theretail sector and they compete with the department stores found in regional shoppingcentres. There are several specialty centres in Canada. For example, Island Home Centrein Victoria B.C. (Forbes, 1992a).Non-anchor Lifestyle Centres' main target markets are affluent consumers. Tenantsin these centres are most often upscale fashion stores that offer high quality, high pricedmerchandise with an emphasis on service. These centres compete with the upper-endfashion stores in the regional shopping centres. Hazelton Lanes in Toronto is an exampleof such a centre (Forbes, 1992a).Factory outlets house a collection of different manufacturers distributors. It is theprice of the merchandise that appeals to consumers at these centres. In return for the lowprices customers sacrifice service and sometimes quality. Regional shopping centres areparticularly vulnerable to Factory Outlet Malls because they offer the same type ofmerchandise at significantly lower prices. "Niagara Crossing" in Niagara Falls, Ontario and"Mega Centre St-Bruno" in St. Bruno P.Q are two factory outlets that are scheduled toopen in 1993 (Forbes, 1992a).These are some of but few types of new centres that combine old retailingconcepts in innovative ways. Such Centres have become the major competitors oftraditional shopping centres. We are therefore not witnessing a decline in the shopping134centre industry as many analysts believe, but an increase in the variation of shoppingcentres based on the traditional shopping centre form (Mitchell, 1992).So with the newer centres occupying the extremes of high quality, price andservice or low price, quality and service, the middle group is wide open. And the middleis occupied by the traditional style regional shopping centre. They have until now focusedon a combination of strategies, involving price, quality, selection, service andconvenience. But it is exactly this diverse and complex business strategy that has maderegional shopping centres so vulnerable to the new competitors. Regional shoppingcentres are not capable of competing with the low prices offered by the new centres.Neither can they compete with the specialized service and product mix other centres areoffering their customers (Matthews, 1992). It is the retailers and the retail centres locatedin the middle that will suffer in the future. Ian Thomas from Ian Thomas Consultants inVancouver says,...to succeed today you either have to be at the downscale,discount, price-sensitive, lack-of-service level or you have tobe at the upscale, totally service-oriented level (Mitchell, 1992,p.51).There are different views of what lies ahead for regional shopping centres. Someanalysts believe that there will always be room for them in the form they are in today.There will always be people that will appreciate the elements that the regional shoppingcentre can offer. Others disagree. As evidence of a change in approach, some majorregional shopping centre developers have begun including category killers and low pricedtenants. As mentioned above, Cambridge Shopping Centre Ltd. is to some degree,135following this new strategy (interview with Lorne J. Braithwaite and James Badour). Othercentres have gone the opposite direction and become more specialized. Brentwood Mall'seffort to serve the local community with a higher degree of community services is suchan example (interview with Pam Bryson). Over time, however, all regional shoppingcentres, I believe, will be forced to pursue one of these new approaches.4.8 CHANGING ECONOMIC CONDITIONS An economic condition currently prevails in Canada that has made life for regionalshopping centres exceptionally challenging. The combined effect of a world-widerecession, the US-Canada Free Trade Agreement and the GST have had a seriousnegative impact on retailing and malls in Canada. The recession has thrown thousandsof Canadians out of work. During such uncertain times people are naturally more cautiouswith their expenditures. With borders increasingly becoming open, Canadians are takingadvantage of lower American prices, enjoying a better overall selection of goods, and arebeing taxed for these products at a significantly lower rates (Wallance & DeMont & Daly,1990).It is these trends in consumer behaviour with which regional shopping centres arenow being confronted. Regional shopping centres have had a tendency of housingmiddle-priced retailers in their malls. With the polarization of peoples earning andspending power, some adjustments in terms of tenant mix must be made in order to stillappeal to today's consumers.136Some shopping centre owners have the impression that it is only a matter of timebefore the current recession is over and business is back to normal (Mitchell, 1992).However, in part because of the recession, several new retail concepts have been born,which will still be there when the recession is declared over. These new retail conceptswill continue to challenge the regional shopping centre industry. It is up to the regionalshopping centres to adjust to this new market environment.4.9 CHAIN STORES ORGANIZATIONSThe shopping centre developers and the chain store organizations have developeda close relationship. The primary purpose of this relationship is to create a mutual bondbetween the two actors which gives them a high degree of control over the variousaspects involved in an enclosed retail environment. For example, retail chains can offera shopping centre a certain mix of tenants that have been shown to be profitable in othersimilar shopping centres (Ircha, 1982). It is commonly believed among the shoppingcentre developers and managers that the retail chains are usually financially stronger andare more secure than other tenants. Further, it is believed that they tend to have a betterknowledge of the retail "game" compared to other retailers. Certainly many chains spendconsiderable resources on market research. The shopping centre, on the other hand, canoffer the chains a retail environment which is fairly predictable in terms of traffic flow andmarket segment from which the mall draws consumers. They can also provide informationabout other competitive retailers within the shopping centre and in the surrounding area(Simmons, 1990). However, current trends indicate that this bond is beginning to weaken.137Although national chain stores are still valued tenants for regional shoppingcentres, the financial problems that many of them now face has considerably diminishedtheir desirability. Stories such as when Ayre's, one of Canada's oldest women's wearchains went out of business before Christmas in 1991, are forcing shopping centres toconsider other tenants (Heinzl, 1991a &1991b). Dylex is another example. As a result oftheir financial problems, Dylex announced on November 29, 1991 that it's 162 Town andCountry stores would close (Heinzl, 1991). Peoples Jewellers and Henry Birks & SonsLtd. are the two leading Canadian jewellery chains, and both announced major closuresof stores and lay offs in the beginning of January 1993 (The Vancouver Sun, 1993). Thisannouncement had a major impact on several shopping centre companies. CadillacFairview will loose at least 20 of it's 27 Birks stores located in 50 of their malls in Canada(The Vancouver Sun, 1993).Large numbers of national chain stores have become a common sight in manyregional shopping centres. Some chain stores operate large numbers of stores andaccount for a high degree of the total retail chain sales. The result is that a few wellknown chains are over-represented in regional shopping centres. The chances that onemay find a Fairweather or a Lady's Footlocker in a regional mall are high. Whereasconsumers at one time seemed to like or tolerate the fact that they knew what to expectbefore they even entered a mall, some mall managers are now finding this to be a liability(Simmons & Jones, 1990).A new emphasis on diversity and diversity has resulted in many centres looking tosomewhat untraditional tenants. Some centres look for tenants which have a better138understanding of the community in which the mall is located. By increasing the numberof local or even regional chain tenants in a centre, malls gain tenants more attuned tolocal community needs, as opposed to national chains whose head offices are often inToronto.The traditional tenants that were once pushed out from the regional shoppingcentres when they expanded in the eighties are now being invited to locate back in someregional centres. For example, some regional shopping centres now consider thetraditional hardware stores as a valuable tenant. Although hardware stores tend to be lessproductive per square foot than, for example, a clothing store, they add to the mallsdiversity and increases the mall's pull-effect on customers (interview with James Badour).On the other side of the equation are large merchants that offer large quantities atlow prices. Although some of them are too large to be connected with a regionalshopping centre, there are some medium sized category killers that have been leasedspace. Cambridge Shopping Centres Ltd. recently got the American owned Pacific Linento locate in three of their malls in British Columbia. 17 Cambridge's president, Lorne J.Braithwaite said in an interview with the author that instead of taking the risk that PacificLinen locates in competing locations, it is better to take the chance and join with them.A third reason for the changing relationship between chain stores and regionalshopping centres is their style of management. Their large size and generally strongerhierarchical management system tends to make them less able to adapt quickly or at all17 Pacific Linen's three outlets in British Columbia are located in Eaton CentreMetrotown, Capilano Mall and Longsdale Mall.139to changes in the local market. It is not uncommon for the decision making process totake place in an entirely different city, in another province from where many of their storesare located. Most of the major fashion retail chains have their head offices in EasternCanada. Reitmans, Dylex, Kinney Shoes Canada, Comark Canada and Crofton, four ofthe largest fashion chain store organisations, have head offices in Toronto or Montreal(Simmons & Jones, 1990). Although, they are often the trendsetters in the fashionindustry and have the resources to produce extensive market research, they do not havethe flexibility to adjust to regional and local differences. In order for regional shoppingcentres to become unique and be able to distinguish themselves from other shoppingcentres, adaptable merchants are essential (Bruder, 1991).Although the relationship between regional shopping centres and national chainstores will continue to be of importance, chain stores will no longer dominate in the sameway. There are many regional shopping centres that will go far to support large chainstore tenants that experience financial difficulties. Decreased lease payments for a setperiod or completely new leases are often offered to chain stores in order to prevent thespace from going vacant. However, agreements like this are only valuable for a limitedtime period (Forbes, 1992b; interview with George Stewart). On a long term basis manychain store organisations will have to reorganise their total business approach. This mayinvolve the closure of stores and lay-offs of employees. The stores that come out of thisreorganisation process are often quite different than before. In the future, regionalshopping centres may therefore see fewer old, familiar tenants and far more new ordistinctly different tenants.1404.10 THE DEPARTMENT STOREHistorically department stores have played an important role in the developmentof the shopping centre industry (Statistics Canada, 1976; Fieden & Sagalyn, 1989). Thisis especially true for the regional shopping centres. A quick glance in the newspapertoday will confirm that a large proportion of the department store industry is goingthrough some turbulent times. In the following section I intend to examine the historicaldevelopment of department stores and the effect this has had on the shopping centreindustry, and also explore some of the reasons for the problems the two industries arefacing.4.10.1 HISTORYThe first department stores were located in cities' downtown areas, often in busyintersections where the street cars were running. They became the big attraction in thedowntown core. People would travel on cable cars from their homes, which were oftenlocated far outside the central business district (CBD), into the downtown area onshopping trips. The department stores also influenced the surrounding commercial area.Small businesses would locate close to the department stores so that they could benefitfrom the masses of people the department stores pulled into the area. The area's aroundthe department stores became popular places to stroll and shop, and as result of this thestreets became a safer place to be (Frieden & Sagalyn, 1989).At the same time that the department store industry started to grow, NorthAmerican industry was beginning to produce merchandise in mass quantities. This141resulted in lower prices and more merchandise available for a larger part of thepopulation. At the same time, people were beginning to acquire more disposable income,as well as more leisure time. Women's roles began to change significantly. Increasingly,women had greater control over their families' spending as well as with their own wealth.The number of women entering the work-force was a significant factor behind this trend.Department stores reflected these changes in their business strategies. Theirmarketing specifically targeted women, and attempted to "teach" them how to shop. Theyalso sought to educate the North American middle-class in how to shop for the purposeof benefitting their own image. People were shown how to dress and decorate theirhomes in a way which marked their success and wealth. The department stores were notonly able to provide their customers with the products they designed, but could deliverit to them at comparatively low prices (Frieden & Sagalyn, 1989). Department stores werealso issuing credit cards for sales within the store. By doing this department storesbecame an intrinsic part of the mass production and mass consumption society (Ploger,1990).4.10.2 THE DEPARTMENT STORE AND THE SHOPPING CENTRE INDUSTRYCanadian department stores were relatively slow to join in the growth of theshopping centre industry. Department stores were suspicious and to some extent fearfulof this new retail concept. They had invested large amounts of their capital in theirdowntown locations making it difficult for them to suddenly turn their business strategytoward the suburbs (Frieden & Sagalyn, 1989).142Despite a relatively slow start to their business relationship, department stores andshopping centres became inextricably linked by the mid-sixties. It then became clear toboth how important this relationship was. According to Statistics Canada (1976 & 1986)only 11 department stores were located in shopping centres in 1956, representing 1.3%of the total number of retail stores in centres for that year (Table 19). Despite this lowfigure department stores accounted for 24% of the total retail sales made in shoppingcentres. Twelve years later, the number of department stores located in shopping centreshad increased to 123, accounting for 1.9% of the total number of retail tenants in centresfor 1968. That year 30% of the total retail sale made in shopping centres came fromdepartment stores. Significantly, 35.4% of all department stores sales came from thesestores located in shopping centres. By 1973, 49.3% of all department stores in Canada 18were located in shopping centres. They represented 2.4% of the total number of tenantslocated in the shopping centres and accounted for 33.1% of the total retail sales madein the shopping centres. At the same time, 51.6% of all department stores sales inCanada were made at department stores located in shopping centres. In 1986 therelationship between department store organisations and shopping centre industry hadbecome even stronger. Approximately 84% 19 of all department stores operating in18 Total number of department stores located in shopping centres in Canada in 1973was 262.19 Total number of department stores located in shopping centres in Canada in 1986was 675.TABLE 19^HISTORICAL STATISTICS ON DEPARTMENT STORES.YEAR 1956 1959 1964 1968 1972 1973 1986TOTAL NO.OFDEP.STORE 531 807NO.OF DEP STORESLOC.^IN SH. CENTRES 11 26 60 123 219 262 675DEPT.STORES AS % OFTOTAL NO. F RETAILSTORES IN SH.CENTRES 1.3 1.1 1.3 1.9 2.3 2.4TOTAL DEP STORESALES IN^$^'000,000 224.8 3,713.8 4,316.1 12,902,694SALES OF DEP.STORESLOC.IN SH CENTRESIN $^'000,000 56.1 113.7 343.2 866.6 1,844.2 2,228.3 11,182,666SALES OF DEP.STORES INSH.CENTRE^AS % OF TOTALSALES IN SH.CENTRES 24.0 18.4 22.0 30.2 33.7 33.1DEP.STORE SALE IN SH.CENTRES AS % OF TOTALDEP.STORE SALES 35.4 49.7 51.6 i1SOURCE:STATISTICS CANADA.^1976. SHOPPING CENTRES IN CANADA 1951-1973.STATISTICS CANADA.^1989. SHOPPING CENTRES IN CANADA 1986.144Canada were located in shopping centres. At the same time, more than 86% of alldepartment stores sales in Canada was generated in shopping centre locations.These numbers indicate how the relationship between department stores and theshopping centre industry became very important for both parties Over time, somedepartment stores moved to the development side of the shopping centre industry. Thefigures shown above also illustrate quite clearly that as more department stores startedto locate in the shopping centres, a great proportion of their sales and ultimately profitcame from these locations (Table 19).Compared to the neighbourhood and community shopping centres, regionalshopping centres have developed a particularly close relationship with department storeorganisations. Department stores operate with higher sales numbers in this type of centrecompared to community and neighbourhood shopping centres (Statistics Canada, 1976).In 1973, 127 out of the 262 department stores operating out of shopping centres werelocated in regional shopping centres (Table 20). The average retail sales of thedepartment stores located in regional shopping centres was $ 11,345,400. At the sametime, 78 department stores with average sales of $ 5,881,800 were located in communitycentres, and 57 with average sales of $ 5,765600 were located in neighbourhoodshopping centres. If we compare the number of department stores to the rest of theretailers located in the regional shopping centre, we see that department storesrepresented 2.6% of the total number of tenants, and accounted for more than 45% ofthe sales made in these centres in 1973. By comparison, department stores located inthe community and neighbourhood shopping centre represented 2.8% and 1.8%145TABLE 20^NUMBER OF RETAIL STORES AND SALESTYPE OF SHOPPING CENTRE.^1973.BYTYPE OF CENTRE NEIGHBOURHOODSHOPPING CENTRECOMMUNITYSHOPPING CENTREREGIONALSHOPPING CENTRENO.OF RETAILSTORES 3,240 2,851 4,819NO.OF DEP.STORES 57 78 127DEP.STORES %SHARE OF TOTALNO.OF TENANTS 1.8 2.8 2.6TOTAL RETAILSALES $^'000,000 1,988.2 1,577.2 3,171.1AVERAGE RETAILSALES PER STOREIN $ '000,000 5,765.6 5,881.8 11,345.4DEP.STORES'SALES IN$^'000,000 328.6 458.8 1,440.9DEP.STORES' %SALE OF TOTALSALES 16.5 29.1 45.4SOURCE:STATISTICS CANADA.^1976. SHOPPING CENTRES IN CANADA 1951-1973.respectively, of the total number of tenants, but only 29.1% and 16.5%, respectively, ofthe total sales in these centres. Although department stores as a percentage of all tenantswas almost the same in the three types of centres, their percentage share of the salesdiffers significantly.1464.10.3 CURRENT TRENDSThere is still a strong relationship between department stores and the shoppingcentre industry. Department stores are dominant in terms of occupying large areas inshopping centres, as well as in creating a strong pull effect for the centre in general.Because of this, department stores benefit from low rent compared to other tenants in theregional centres (Simmons & Jones, 1990). However, there are signs of that thisrelationship is in the process of changing, and perhaps weakening.Traditional department stores are making headlines these days because of theirfinancial problems, which lately have been resulting in many closures. Some of thesedepartment stores have been operating for more than a century. Some stores are simplychanging owners, but this, it would appear, is another aspect of the overall difficultiesbeing experienced by these large retailers. Many find it difficult to accept that they will nolonger be a part of the retail picture.Today there are several Canadian department stores that are struggling forsurvival. Some are able to withstand the challenge better than others as there is strongerfinancial backing. The Hudson's Bay Company, Canada's largest department store retaileris better able to cope with some weak stores because the pain can be spread fairly thinthroughout the organization. The Bay, Field's and Zellers, are all owned by the Hudson'sBay Company, and together have achieved relatively positive financial results, due mainlyto Zellers' expanding market share.After 102 years Frederick and Nelson's of Seattle closed it's last outlets in May of1992 (The Vancouver Sun, 1992a). The Vancouver-based Woodward's department stores147have also closed. They began operations in 1903, and until recently, it employed 6000people in Alberta and British Columbia. Since Woodwards decided to sell off its real estatedivision to Cambridge Ltd., the firm has had operational difficulties. In 1989 the chainreported a $59 million loss. Although a small profit (1.2 million) was announced thefollowing year, 1991 and 1992 proved to be losing years 2 0 At the time of writing (April1993) the chain had been absorbed by The Bay (Constantineau, 1992a & 1992b & 1992c& 1992d & 1992f & 1992g & 1992h & 1992i & 1993c.Cambridge Shopping Centres Ltd. and Woodward's Ltd. had developed a closerelationship. Cambridge Shopping Centres Ltd. had become the major shareholder inWoodward's Ltd. At the same time, Woodward's department stores were located in 11out of the 15 malls owned by Cambridge in British Columbia. Lately, Cambridge hadprovided significant financial support for Woodward's. Alternatively, a break in thedepartment store's rent obligations had also been considered.The closure of major, anchoring department stores in any regional shoppingcentre would no doubt, produce a negative effect on other regional shopping centres.Malls lose whatever prestige they may have had when a significant part of the mallsuddenly lies vacant. The smaller tenants that remain, face a variety of problems once thenumbers of people start to fall off. With a store like Woodwards, a somewhat moreaffluent consumer was drawn to shop as compared to a store like K-Mart. This changein the type of patron present in the mall seriously affects the remaining merchants. In20 $19.5 million loss in 1991 and $24.3 millions for the first half of 1992.148general then, the image of malls declines. Retailers will therefore move to where thebusiness is, which could eventually be entirely out of malls.A significant part of department store's financial problems are rooted in morefundamental aspects of the department store industry. The basic philosophicalunderpinnings of the department store concept are currently being challenged. A full-linedepartment store's main goal was essentially to offer everything for everybody under oneroof. Today, however, trends are changing towards more focused and specialisedmarketing. It has become increasingly important for retailers to concentrate on oneparticular market segment, to provide it with a limited range of specialized goods, alongwith knowledgable service. Department stores have made an effort to adjust to thisapproach by dividing their retail space into smaller specialized boutiques or departments.However, there seems to be a need for even more dramatic changes in some departmentstore's marketing strategies. Woodward's president Marc Chouinard, saw a need for evenmore focused and specialized strategy. In December,1992 he announced thatWoodward's would narrow-down it's merchandise range. It would abandon it's furniture,carpet and household appliance departments, and fully concentrate on fashion and shoemerchandise (Constantineau, 1992f).A second reason for the financial problems some department stores areexperiencing today is related to their use of their leasable area. Large department storesare often inefficient users of the space they rent. Again, Woodward's can be used as anexample. Marc Chouinard says that only 60% of the space Woodwards leases is actuallyused for retailing. This percentage, he feels, should be between 80 and 85%149(Constantineau, 1992g). As a result, a lease reflecting the desire to utilize more space willbe negotiated with Woodward's landlord, Cambridge Shopping Centre Ltd (interview withLorne J. Braithwaite).4.10.4 SUMMARYThe question of what should be done to fill in the space after department storesclose down is becoming pressing for many mall owners. Are there other departmentstores that are willing to move in, or is it now time for regional shopping centres to breakwith old traditions? Although many regional shopping centres seem willing to help theirdepartment store anchors, such arrangements may only postpone the problems.Department stores will have to go through a fundamental reorganization of its industry ifthey expect to still be a desirable tenant in regional shopping centres. But in the meantime, the regional's competitors are expanding their markets in other locations. Sooneror later regional shopping centres will have to deal with this new situation. Whetherdepartment stores even survive their current problems, regional shopping centres will beforced to rethink their strategies in the nineties and beyond.150CHAPTER 5STRATEGIES5.1 INTRODUCTION The introduction of the shopping centre in the early 50's was a significantrevolution in the retail industry. Since then, the shopping centre concept has gonethrough a fairly long evolutionary process. During this time, the very idea behind theshopping centre adjusted to a constantly changing retail environment. However, theregional shopping centre as one component of the industry, has experienced severalrevolutions within the concept itself. For example, improved technology made it possibleto enclose shopping centres, and this in turn led to an explosive growth period in the mallindustry.Today, regional shopping centres seem to have reached their "mid-life crisis"(Sweeney, 1991). In order for them to continue to be a vital part of the retail industry,regional centres, as well as their tenants, must realize that it is time for a new revolution.It is therefore important that regional shopping centres carefully study the new social andeconomic trends that are the driving forces behind changing consumer demand and thedevelopment of new retail concepts. Various competitive factors, like improved service,merchandise selection and quality must to be the focus of the regional shopping centres'marketing strategies.In the following section I will look at how some shopping centre developers havealready changed their marketing strategy. I will also make some suggestions of alternative151methods for regional shopping centres to adapt to the new market trends which may helpthem to maintain or increase their market share.Firstly, I will describe how the shopping centre together with its tenants can makethe centre a more service-oriented shopping place. Secondly, I will discuss how someregional shopping centres emphasize low price as an alternative marketing strategy. Thiswill be followed by a description of mixed-use centres and how regional shopping centresmay adapt to this concept. A suggestion on how regional shopping centres can alter theirtenant mix will then be discussed. Changing architectural design of shopping centres isanother strategy which may be employed by some centres. Finally, I will discuss howsome regional shopping centres capitalize on entertainment and amusement in theirmarketing.5.2 IMPROVED SERVICEThe increasingly competitive retail environment has resulted in a greater emphasison service. Simply put, customers' loyalty is believed to be won when greater service isprovided. An aging population seems to also demand more customer service. As a result,improved service has become the new motto for many mall marketers. Service will be oneof the major competitive factors that regional shopping centres will use to increase theirmarket share in the 90's (Mitchell, 1990; Forbes, 1992b & 1991; Levine, 1990; O'Brien,199113; Bristol; 1991; Copps, 1986).Most retailers that are located in regional shopping centres have viewed customerservice as an important part of their marketing strategy. Shopping centre managers have152emphasised this aspect when they select tenants for their centres. However, it is notenough that the retailers offer satisfying customer service, shopping centre organisationsthemselves have to be more active by making their centres a more service-oriented place.By improving the service provided by tenants and the centre itself, both actors will benefitfrom an improved image of the centre.There are several methods that may be implemented to achieve this goal. Theshopping centre can educate and guide their tenants to operate with a certain level ofservice that equates to the other tenants service policy. They may also provide a servicelevel throughout the centre that suits the centre's general image. Juno Developments Ltd.company in the U.S., serves as a good example. They found that several independentstores, that were located in the corporation's malls did not train their employeesaccording to an overall plan. In order to improve tenant's service level, in 1991 theoperation used six percent of it's advertising budget on educating sales staff located atits malls. A consulting firm was hired for this purpose. One of the strategies that came outof this program was to introduce the tenant's sales staff to the other tenants in the mall.By improving the sales staff's knowledge of what was sold and where in the centres, staffwas able to guide and recommend to customers where various merchandise was located(Kidd, 1991b).Not only the retailers but the shopping centres themselves must improve theamount and quality of services offered. Shopping centres are using terms from the hotelindustry to improve their level of service. Although regional shopping centres have alwaysoffered some kind of service, hotel standards are still above the regional shopping153centre's standards. In terms of improved service at regional shopping centres, the centresneed updated and detailed information about their customers and their needs. Thisrequires the centres to become more involved in the day to day contact with thecustomers. It also requires that the centre's managers study and analyze the customer'sbehaviour and special characteristics.An increasing number of shopping centres are providing information desks, coatand parcel checks as well as free gift wrapping. They also offer services which specificallycater to senior citizens. Some centres now provide free use of wheelchairs and sometimes offer an escorts out to the car. Young families are served with specially designedrestrooms, baby sitting services and strollers on loan. Some of Trilea's shopping centresare at the forefront in this regard. The company has focused much of its marketingstrategy on an expensive and innovative service improvement plan. In addition, in orderto encourage retailers to offer customers greater service, Trilea has employed people thatwill be available to customers that need help with their shopping. Brentwood Mall, a Trileacentre, provides customers with flyers describing the service offered at the centre."Brentwood. More than ever... For You" or "Service For You" are the terms used in theadvertising. This demonstrates that the centre is willing to go further than usual to satisfytheir customers (Mitchell, 1990; Bristol, 1991; My own observations).In order to change shopping centres general image and make them more service-oriented, the relationship between centres' owner and their tenants has to be improved.Until recently, the centres owners have focused their attention on the real estate aspectof the shopping centre industry (Ruttenberg, 1992). However, the shopping centre is a154complex retail environment and developers must pay attention to each individual aspectof the centre. More attention must be given to the most important component in theshopping centre industry, namely the retailers. They are the fundamental part of theenterprise that are directly responsible for the success or failure of the shopping centre.Never before has it been more important that the shopping centre developers understandand relate to the retailers business situation. Shopping centre developers may also beable to assist tenants in becoming more than shop owners, and instead aid them inbecoming innovating merchants.The downturn in the economy has deeply affected the relationship between thedevelopers and the retailers. Developers, to a greater extent today, are seeking retailers,as opposed to retailers seeking shopping centre as location opportunities. The fear ofvacant store locations in a mall has forced developers to become more flexible andunderstanding when dealing with their tenants. The relationship is also productive in otherrespects. The recession created an opportunity for both parties to be introduced to eachother's business worlds. With this knowledge comes a better understanding of eachother. A new team-work approach seems to have grown from this.A productive relationship between the retailers and developers is also important inorder to improve the centres' level of service. Swansea Mall in Massachusets, is anexample of a developer and tenants working together to improve customer service(O'brien, 1991b). Computer technology is used by the centre's managers to produce aweekly updated list of all merchandise and services on sale in the mall. The printed listsare handed out on request, or at the directories located at each of the centre's entrances.155The lists keep each retailer updated with the rest of the retailers in the mall, while at thesame time saving customers time and money through enhanced service.A second example is the "Homart Daily Comparative Report" (Andreoli, 1991). Thisreport made by Homart Development Company, is published in nearly all of its shoppingcentres in the U.S. One report is produced for each shopping centre. Each individualretailer that participates in the program reports it's sales performance per square foot tothe managers every day at noon time. On the basis of this information, the computer listseach merchandise category's sales performance. The sales numbers are also related toweather conditions and special events scheduled at the mall. It is then up to eachindividual retailer to use this daily information to update their performance to customersmovements. The report also allows retailers, as well as developers, to react quickly tochanges in the mall traffic. Further, such a report takes away much of the uncertainty thatcharacterizes most retail environments. At the same time, it makes it easier for developersas well as retailers to be better equipped to serve the customers. By picking up the dailyreport, the shopping centre managers and the retailers create a daily contact with eachother. It forces the managers to leave the office and meet with the retailers on a regularbasis.5.3 LOW PRICE CONCEPTIn retailing today, the pendulum has swung to the low price/low service retailconcept (Matthews, 1992). In the early 1930's the supermarket was introduced toconsumers. It was a largely self-service approach to shopping. Twenty-five years later,156the introduction of discount stores pushed low prices even lower and similarly withservice. Consumers were given a higher degree of self-service, and in return theyreceived access to a wider variety of merchandise at lower prices. Warehouse clubs werean early example of this trend. They emerged on the retail market in the mid-seventies,offering a wide variety of merchandise, very low prices and virtually no service (Bates,1989).Much of the current retail industry still is concentrating on developing new retailconcepts on the basis of low price and low service. As a result, the central idea of retaildistribution, where the retailers are the second or third link in the distribution chain, haschanged. Today, we are witnessing a larger number of producers also becoming thedistributors and/or retailers. This reduces the links in the chain between producers andconsumers to an absolute minimum. The result is a large number of merchandise beingoffered at minimum prices and accompanied with minimum service and distribution costs.There is no doubt that the regional shopping centre industry is being hurt by theincreased number of low price/low service retailers. Retailers that offer their customersregular bargains seem to attract purchasers from all income groups. Although regionalshopping centres have some low-price oriented tenants, there is little doubt that muchbusiness is being lost to retailers like these that operate independently of shoppingcentres. The developers must rethink their business strategies in terms of who they nowwant as tenants (Matthews, 1992).In the U.S. there are several examples of regional shopping centres that havefound it more profitable to change their tenant mix and become a discount mall. The157nearly twenty year-old South Hills Mall in Poughkeepsie, New York found that it was losingits market share to other retailers in the area. In order to remain competitive in the 90'sretail environment it decided to go through a major renovation and expansion period.What made this renovation unique, was that the centre decided to transform itself froma high price/high service centre to an discount power centre. The old tenant mix wasreplaced by larger stores and an increased number of discount anchors. In addition, thecentre was turned inside out to give the centre an orientation towards the street(Garbarine, 1992).According to the International Council of Shopping Centres this is a new trend inthe shopping centre industry (Garbarine, 1992). Consumers are becoming more andconservative in their spending habits. This is partly because of the recession, but alsobecause the current recession has made them aware of various ways to shop morecheaply. The mall owners have therefore been forced to apply an aggressive marketingstrategy to maintain their market share. Although South Hill Mall took the extrememeasure of changing the entire mall into a discount centre, there are other less drasticstrategies. Some regional shopping centres include only a small number of lower-pricetenants to the existing tenant mix. "Fixed price retailers" have become popular tenants inthis regard. Some even called them "the retailers of the 90's" (Hogan, 1992b). They oftenstart out as temporary tenants until they have proven their worth to the mall as a tenant.Everything that is offered has a set price and in some cases a maximum price is set."Everything $1.29", "One Price Clothing Stores Inc." and "$ 10 And Less Stores" are buta few of these successful retailers. The stores give the customers a psychological boost158and a reason to buy something without spending a significant amount of money. Thesestores are fairly easy to run and have proven to be successful in regional shoppingcentres.Other regional malls prefer a larger off-price component in the centre. An increasednumber of lower-price anchors or a major discount food store may be what a regionalshopping centre needs to draw more people to the mall. The introduction of some ofthese retailers may cost the centre some of its existing tenants. However, this may bewhat it takes for some regional shopping centres to increase their market position.In my discussion with several mall managers in Vancouver it became clear thatsome of them are entertaining thoughts of including discount retailers to their malls. Somecentres may be better suited for this than others, depending on such things as the marketit presently serves and will serve in the future. As the recession drags on, this trend islikely to continue.5.4 MIXED USE CENTRESThe original philosophy behind shopping centres was to provide the suburbanpopulation with a one-stop shopping facility (Gruen & Smith, 1960). However, the way thatregional shopping centres have developed shows that this strategy has been all butabandoned. The close relationship that has developed between the centre's owners andthe major chain store organisations and anchors has enhanced a retail environment forthese types of stores, often at the expense of small retailers. As a result, regional159shopping centres have become largely homogenous. Smaller businesses which could addto the centre's diversity have been given low priority by the mall managers.Some regional shopping centres have returned to the original philosophy behindthe concept. They have revamped existing areas by adding non-competitive retail space.By increasing the breadth of merchandise and services offered at the centres, the pulleffect on customers will also increase (Doocey, 1992b).Some regional shopping centres have gone a step farther. There are severalexamples of regional shopping centres that are combined with other urban development.Previously, development of residential, work and retail space has gone on separately.These three features are now being combined in such malls as Oakridge (interview withJames Badour). This is a trend that is likely to continue.Cambridge's Urban Group division has developed such a strategy for itscorporation. The program is called "SPACE" which stands for Special Program for AddedCoverage and Efficiency (Doocey, 1992a). This new program provides the company withcertain criteria that established regional shopping centres must fulfil before beingconsidered for mixed-use development. High sales per square foot, market dominanceand on-site land availability are some of the requirements. If a centre fulfils therequirements, office buildings will be the first component considered for the development.Hotels and residential areas will then be considered.Several of the regional shopping centres studied in this paper are involved in theGVRD's designated town centres plan. Richmond Centre, Surrey Place Mall are bothlocated close to dedicated town centres. This gives each of these centres a unique160opportunity to join in a broader development. There are several interest groups involvedin such development projects. It offers the shopping centres an opportunity to benefitfrom the overall volume of traffic that such a development creates. Surrey PlaceMall's active participation in the planning process of the Sky-train expansion fromdowntown Vancouver to Whalley town centre serves as a good example. When privatecapital was needed to support several of the new sky-train stations, MarkboroughProperties Inc. and Cal Investment, the two owners of Surrey Place Mall paid 2.4 milliondollar to have the sky train station located just north of the shopping centre (interview withDavid Chard). Although the station is located outside the centre, it is not expected tocreate a direct increase in the number of people who visit the centre. However, bylocating a sky-train station in this area, other investments and development projects havefollowed. The other effect is that it has also prevented other shopping centres in Surreyto take advantage of the traffic that Sky-Train creates. Gateway is one example of anoffice and residential development project in the area. The project, announced inSeptember of 1992, will involve a 16-story highrise, housing 8,000 occupants. Gatewayis expected to draw people as well as businesses to the area (Munro, 1992). By SurreyPlace taking an active role in at least one aspect of the development of Whalley TownCentre, they have insured their position as a major actor in future development.A multi-use development will also create a more even flow of pedestrian trafficthroughout the day. It may require that retailers located in the complex become moreflexible in terms of opening hours. New York City's Trade Centre is a multi-usedevelopment, housing offices, a hotel and a retail environment (Hazel, 1991). In order to161serve the visitors to the office towers, stores are required to open at 7:30 a.m. onweekday mornings. Although the retailers were sceptical when the program first startedin 1976, the large number of early morning shoppers have resulted in a success.Although such policies may not work for all regional multi-use developments, retailers willbenefit from a more flexible approach.Multi-use development will result in less overall land use. Developers will find itcheaper since land acquisition will usually be minimal or non-existent. Municipalities andprovincial politicians welcome and support such development (Gunner, 1990). It increasesthe municipality's tax revenues and presents fewer problems in terms of planning. Suchproblems as traffic congestion are reduced, and public transit becomes more viablebecause such centres require less travel for people accessing the services offered.There are, however, several difficulties with multi-use developments. First, it isdifficult to add non-retail elements to a building structure that is primarily designed forretail activities. Not only can it involve expensive re-development of the existing centre, italso requires extensive architectural work to make it blend into the surroundings. Multi-usedevelopments may also have to struggle with municipal regulatory authorities. Cashstrapped developers will be reluctant to get involved in a new office or hotel developmentproject because of the insecure economic times. Although recession periods are often theright time for new projects, the over-supply of office space in many North American citiestoday, seems to make developers reluctant to get involved. Nevertheless, multi-usedevelopment is a trend that seems to be catching on. Expect to see more of this type ofdevelopment in the coming years (Doocey, 1992b).162Although such a development strategy may not suit every regional mall, it is awelcome new step in the shopping centre industry's evolutionary process. The retailaspect of the regional malls has been developed to its limit. New strategies to expand theregional shopping centres' market are therefore essential. Multi-use developments giveshopping centres an opportunity to expand their market without having to add to it's retailcomponent. They can also take advantage of the increased non-competitive traffic thatwill be generated by the other developments nearby (interview with David Chard). Withcurrent population growth, these types of developments will no doubt becomeincreasingly popular.5.5 NEW TENANT MIXCurrent retail trends point to increased specialisation with a high degree of serviceon the one hand or mass appeal with large quantities and low prices on the other.Regional shopping centres neither capitalize on mass appeal and low price, nor are theyhighly specialised in terms of products and service. Although they have a concentrationof their tenants in the fashion category, regional shopping centres tend to not focus onone particular product category. Many regional shopping centres operate with a strategysomewhere in the middle of the two trends. It is my belief that we can expect to see anincreased number of regional shopping centres turning away from the middle marketingapproach and move toward the extreme ends of retail marketing. A small number ofretailers dominate a large part of the activity at many regional shopping centres in163Canada. In order to respond to these market conditions some regional shopping centresare opting for the mass appeal/low price retailers.Another alternative is to downscale the centre, making it more responsive to theimmediate community. This may involve greater specialization and a broader selection ofgoods. Smaller, more locally based retailers have usually had difficulty gaining access toregional shopping centres. High rents and stubborn landlords are a few of theimpediments. The situation changed when mall owners were confronted withunexpectedly high vacancy rates. As a result, the owners began looking more favourablyat the smaller retailers (Forbes, 1992b).Cambridge Shopping Centres sees in smaller retailers a valued potential tenant.Together with the Retail Council of Canada, Cambridge has published a work-bookentitled "Success Retailing". The work-book helps retailers review their business strategyand develop new, sophisticated tactics to meet the current retail environment. This jointeffort was undertaken to assist smaller retailers in strengthening their position in a highlycompetitive retail environment. In addition to the work-book, Cambridge sponsoredmeetings in which the retailers had an opportunity to meet with and discuss issues withprofessional retail consultants (interview with Lorne J. Braithwaite). The participation ofmall developers in this program is evidence of the growing interest in leasing to smallerretailers. Increasingly, they are being seen as valuable tenants in the same way thatchains were formerly perceived.Small, independent and locally-based retailers often have characteristics that makethem desirable tenants for regional malls that are in the process of downscaling its164operation. These retailers usually have a simple and relatively efficient management. Theowner/managers may also work as employees. Such an operation is leaner and moreefficient in dealing with changes that can affect the business climate. It can respond morequickly to customers tastes. Complaints are known to the owners and are responded tomove efficiently. Stocking is similarly dealt with.By contrast, national chain store organisations have a complex and geographicallyscattered management system. Stores may be located in Vancouver, while the head officeis located in Toronto. If the management system is centralized, the shopper's only contactto the chain is with a sales person, the lowest person in the hierarchy. If the shopperexperiences a problem, that information must travel a long network before it is consideredand then responded to. The same will be true for dealing with changes to local businessclimate. However, larger chain store operations generally have the resources andknowledge to conduct extensive market research, something that independent stores cannot do to the same extent.Increasing the number of temporary tenants is another method of increasingdiversity at malls (Curran, 1991). Short-term tenants were formerly perceived by mallmanagers as a headache. Moreover, they could be seen as damaging to a mallsreputation of having stable, well-patronized tenants. But this attitude is changing. Manytemporary tenants have become wiser about market conditions. By operating in this waymany of these retailers are finding that they can run profitable, cost-efficient businesses.Even national chain stores operate with temporary locations in order to test newmerchandise or serve seasonable demands. Benetton, Harry Rosen and Le Chateau, all165large chain store organisations, occasionally operate out of temporary locations (Curran,1991). Temporary tenants are helpful to the shopping centres because they can movein to empty locations on short notice. At the same time they provide the centres with anew opportunity to attract more people. They provide a vital alternative to the existingtenant mix. They also can add unique dimensions to the mall. If located in carts andkiosks, temporary tenants can make mall strips more lively and colourful. Temporarytenants may use the mall as an incubator for further growth. By helping them, the mallsmay gain some permanent tenants.Brentwood Mall has an internal plan to include a larger number of independentretailers into the mall. This is done to make Brentwood Mall a shopping centre thatreflects the community's needs and special characteristics through various merchants.They want to return to the original shopping centre concept, offering everything that thecommunity needs (interview with George Stuart, Pam Bryson and Jeff Burton). Althoughthe centre still has a large proportion of "traditional tenants", an increased number of localmerchants and community services are locating in the mall. A butcher, a fruit andvegetable store, a bakery as well as an Italian fashion store are a few of the tenants thathave recently moved into the centre. Trilea, the owner of Brentwood Mall also has atemporary leasing program at Brentwood Mall. The mall has a combination of small shopsand carts that are specially designed for temporary tenants (interview with Pam Bryson).Smaller more locally-oriented retailers, as well as an increased number oftemporary tenants will contribute to the centre's retail diversity. It will also increase thecentre's ability to serve the surrounding community.1665.6 ARCHITECTURAL DESIGN Regional shopping centres were traditionally located in suburban environments.Although they were originally not designed to serve as substitutes for the missing towncentres in these communities, they quickly adapted to this role. Regional shoppingcentres often became the only place for the suburban population to gather and seeksocial interaction. The shopping centre developers were able to use their social role inthese communities for their own benefit. They were put in a position where they could usethe retail environment as their tool to influence and manipulate people using the centre.However, the suburban environment has changed and so have the people that live there.From a urban design point of view, it is time that regional shopping centres redesign andreadjust to the current suburban environment in a way that will serve the community aswell as themselves in a more suitable way. It is this aspect of design that I will explore inthe following section.The internal as well as the external design of a shopping centre is of majorimportance to the centre's image. Regional shopping centres have had little need to blendinto the environments. Many regional shopping centres are therefore separate, bothphysically and aesthetically from the environment around them (Dennis, 1990). Since theadvent of air conditioning, centres have been closing their environments, andconsequently more emphasis is put on the interior design of the centre than on thecentre's exterior. Regional shopping centres have become enclosed retail havens,separated from the world outside. The blank and naked exterior walls are left to ourimaginations to picture what we may find inside. The empty walls make people curious167about what is hidden behind them, curious enough perhaps to make people enter themall. From the moment one enters the mall, one is captured in an artificial world. Thisenvironment is carefully designed to move people around in a way that the retailerslocated within the mall may benefit.On a visit by Kowinski to Greengate Mall in Greensburg, North Carolina, he noted,after all the stores had closed that the mall resembled a theatre (Kowinski, 1985).21Like a theatre in which King Lear might be followed the nextnight by Camelot and the next by the Jacksons in concert, themall is a Never-Never-Land that says let's pretend. What ispre-tended can be virtually anything. The mall is, in a world,malleable, and that becomes another key to its success(Kowinski, 1985, p.63).Both theatre and malls use a combination of darkness and light to attract andaffect people's moods. As with theatre, malls close themselves off from the outside worldby windowless walls. The desert of cars parked outside the malls, and the extensive roadnetwork creates a physical barrier between the enclosed mall and its surroundings. Insidethe mall the same technique is used to draw people's attention to certain aspects of themall. Studies have shown that warmer and darker colours tend to slow pedestrian trafficdown (Ewing, 1992, p.7; Pettit, 1985). The combination of dark interior and bright storeshas a physiological effect on people and focuses their attention on stores. This type ofdesign technique was commonly used in the late sixties and seventies. Capilano Mall isa good example of this kind of design.21 Kowinski travelled to different parts of the U.S and wrote a book on the experienceof these visits.168Malls like theatre isolate people in a world of artificial time and space. Time iscontrolled by light conditions, and in a mall the light never changes. Time, in a sense,stands still. Space is controlled by perception. But malls are chock-a-block with tricks tothe eye. Store fronts can be made to look old, but really are not. Theatres, in the sameway, control time and space.In addition to being isolated and artificial, malls like theatre are protected andcarefully crafted environments. The mall can be designed to look like a market, but withthe smells and noise removed. Natural heat or cold is absent, and instead is controlled.This is true of the time of day--there is a perpetual state of day. There are no busy streetsto impede people's progress from store to store. A truly ideal world is created whosecentral idea is, shop (Brown, 1992b).The components of enclosure, protection and the control of the mall environments-makes malls an efficient and powerful selling machine. However, this has also made mallssomewhat unsuitable for our communities. Kowinski likens them to fortresses in thecommunities (Kowinski, 1985). As discussed earlier in this paper, some centres do makean effort to become more integrated in their communities by having some community-oriented services and retailers. However, as long as the centres have a external designthat is turned inward, away from the environment it is located in, malls will never be a fullyintegrated part of our communities.The largest barrier between shopping centres and the rest of the community is theparking lot. Patricia Leight Brown (1992b, p.40[L]) describes the mall as "...A massivebrown box sitting stolid and Buddha-like in a sea of cars." The buddha must be169redesigned so that there is a transition zone that is better linked to the environmentaround it. A physical connection from the mall to the residential surroundings is what isrequired.While malls developed into isolated consumer paradises, the urban developmentprocess has gone on unabated. North-American suburban communities have changedsignificantly in their character. The tremendous increase in land values and the shortageof land available for further development has resulted in a denser urban environment. Butwith this denser urban setting has come serious environmental problems--the air, waterand soil are being fouled as this urban plan is pursued. As a result, politicians are nowseeing limits to the growth. The suburbs therefore are being forced to accommodate thegrowth that the urban centres can no longer sustain. Suburbs have, as a result beenincorporated in the urban centre's plan (Gunner, 1990).The densification of suburbia has a significant effect on the future development anddesign of regional shopping centres. Regional shopping centres now have a chance tobecome a more integrated part of the community in both content (for example theservices provided) and design.Current trends in suburban architecture signify people's need for the use ofsymbols from the past in order to create some kind of identity. In a diverse and complexsuburban and urban environment people need buildings as well as communities withsymbols that relate themselves and their culture to a place (Duany & Plater-Zyberk, 1991;Petroff, 1991). There is a move toward using the traditional architectural components ofsmall towns in suburban development projects. We can see examples of this in the170popularity of older renovated towns, in the rebirth of historical parts of a city or in thearchitecture in new suburban community development. Regional shopping centres havealso adopted this approach. The various regional shopping centre names shows ownersefforts at being recognised as a valuable substitute for the traditional town centre."Village", "Plaza", "Town Centre" or even the word "Centre" itself serves as an metaphorthat creates a image of place (Dennis, 1990).Duany and Plater-Zyberk, a group of urban planners and architects that areemploying a new approach to suburban design and development. They believe thatsuburbia has growth and planning problems that cannot be ignored. They are thereforeusing old principals that have governed traditional town design in their planning anddesign of new communities. The group has also developed plans for the betterincorporation of regional shopping centres into towns. Their variety of plans for thispurpose all involve using the town street grid in the commercial component of thedevelopment. By including the mall into the town's street-scape, it will naturally becomemore integrated in the rest of the town's activities. This is done to allow people to walkfrom the surrounding neighbourhoods into the shopping centres without having to meetany barriers (Duany & Plater-Zyberk, 1991). Although it is more difficult to incorporateexisting malls into a community, the group also has plans for incorporating such oldercentres. Instead of using solid concrete walls, the group recommends that malls shoulduse glass windows to open the building up to the world outside. Oakridge's newer, westsection was one of the first attempts by a Vancouver Mall at reuniting people inside themall with the outer environment. The large glass wall opens the corner of Cambie and17141st up to shoppers inside, while at the same time permitting views and reflections bythose outside. Brentwood Mall has also made some effort at opening up the mall to theoutside. In the food-court, people can enjoy the view through the panorama windowlocated at one side. On other malls many of their entrances employ large glass doors,again to permit more contact with the outside.The transition zone between the mall and the rest of the community must also bebroken up. For most malls this transition zone is usually a vast parking lot. This desert ofcars must be transformed into a vital and attractive place that will draw people's interest,and connect them more with the activities at the mall (Dennis, 1990). It should becomea place where the unique character of the neighbourhood is reflected. Streets andpedestrian paths, different building types, parks and public transit stations should blendin among a modest number of parking places. The balance of the parking space shouldbe provided in large multi-level parking houses, or under the ground. Such a designwould distract some of the attention away from the large scale shopping centre, anddiffuse it to the area in general.Lougheed Mall is good example of why this strategy should be provided. Althoughthe centre already provides a multi-level parking house, the parking lot on the mall's westside is a major barrier to the immediate neighbourhood. A large residential area is locatedwest of the mall, which has numerous footpaths leading to it. However, when these pathsreach the perimeter of the shopping centre they stop, leaving people to wend their waythrough the immense parking lot. Surely these paths could be extended through thisparking lot in order to make the mall somewhat more user friendly.172Brentwood Centre has a large transit station located close to the mall's entrance.Although a narrow pathway leads from the transit station to the mall, the attention andeffort put into this is minor. On a rainy day, people arriving to the mall by bus still haveto walk on the pathway among all the cars without any weather protection or special lightprovided.When Surrey Place Mall went through its renovation in 1986 it was required by themunicipality that an entrance be provided for people arriving by bus. This entrance islocated close to the bus stop, and by looking at it one can see that some effort was putinto its design. A colourful portal surrounded by decorative landscaped vegetation makesthe trip from the bus stop into the mall a pleasant experience.Oakridge Centre has an exercise path behind the south-west parking lot. Shrubsand trees are planted, and benches are provided. Although the path is located behind theparking lot, it makes the transition zone between the centre's parking lot and theneighbouring residential area somewhat more aesthetically pleasing.Adjusting these centre's appearance as proposed here is no doubt a costly stepthat most developers would simply reject. The cost and general bother make the effortless than rewarding. However, the responsibility for this redesigning effort is as much themunicipalities' as it is the developers'. After all, these shopping centres are integral partsof the community, and often are the town centre's themselves. Therefore, support fromthe municipalities is required. Only through extensive cooperation between the public andthe private sectors can such developments become possible and successful (Dennis,1731990). It is also important from the public point of view, that its interests be representedthrough municipal participation in further development of suburban town centres.5.7 ENTERTAINMENT/AMUSEMENTIncreasingly, mall owners today are including an entertainment component in themall in an effort to draw more people who might have more than shopping on theiragendas. In order to succeed at this, malls must study the motivation and drives behind"leisure" shopping. This knowledge allows them to provide entertainment activities whichcan be accessed while consumers shops.Shopping in itself is regarded as a leisure activity by many people. A 1990telephone survey of 1000 adults in the U.S. showed that 31% of those asked consideredshopping at a shopping centre as a recreational pastime (Jackson, 1991). If malls areperceived by consumers as centres of leisure activity, there is little doubt that mall ownerswill exploit this for their own advantage. During the eighties, for example, many regionalshopping centres incorporated amusement and entertainment facilities into the retailenvironment. Although movie theatres have been a part of many malls for some time,during the 80's the entertainment concept was developed and became moresophisticated and diverse.Edgar L. Jackson (1991) believes that people who consider shopping a leisureactivity tend to shop in a different way than those who are more practical in theirapproach. He believes that there are different motives behind leisure shopping. Somepeople tend to have a more unconstrained relationship with money when they shop.174Although price is still an issue, these people are more generous in their spending habits.Leisure shoppers also enjoy the activity because they often have no other constraints thatinterrupt their shopping activities. It is not surprising that they tend to shop more forthemselves than for others. The bumper sticker that says "When the going gets though,the tough go shopping" (Jackson, 1991, p.285) is a tribute to the leisure shopper.The motivation behind leisure shopping is the same as any leisure activities:personal fulfilment and experience. Leisure shoppers endeavour to satisfy smallindulgences rather than necessities. It is this aspect of the consumer behaviour that mallowners exploit when they introduce an entertainment facility in their malls.Perhaps the most extreme example of entertainment activities within the mall isfound at the West Edmonton Mall in Alberta. This mega mall is considered the world'slargest enclosed shopping centre. Approximately 20 million people visit the mall eachyear. It has 600 stores, some of which operate more than one location in the mall. Thereis a roller coaster, submarine and artificial wave pool in the amusement section of themall. Fantasyland Hotel, connected to the mall, has 335 rooms which feature eightdifferent themes (Fitzgerald, 1991b). A total of 15% of the mall's total building space isdedicated to recreation and leisure facilities. These facilities also account for a substantialproportion of the mall's total revenues. Twenty-five percent of the total revenue-producingspace comes from the recreational and leisure facilities. It takes an average of sevenhours to walk around the mall (Fennel, 1989). Though not dissimilar than many otherCanadian malls in terms of the types of retailers present, what makes it unique is thenumber of retailers and the large amusement complex (Simmons, 1991).175Although there is little room for many other malls of this size, some regionalshopping centres have found it tempting to adapt some aspects of this marketingstrategy. The entertainment facilities give the mall owners an alternative tenant that canfill vacant space. But unless these facilities are carefully planned, the mall may be courtingdisaster.According to a consultant in Salt-Lake City that specializes in mall entertainment,there are two types of amusement products that malls use. There are destinationentertainment products, which provide customers with a relatively long lasting experience,for example a golf course. The second type of amusement facility does not have thesame pull effect as destination products. They depend mainly on impulsive usage bypeople already in the centre. Despite this, they account for high volume sales and income(Doocey, 1992b).It is often tempting to add an entertainment component to a mall in order torevitalize the centre. However, such a decision requires that the components are carefullyselected to suit the centre's clientele. The different entertainment components have to bereplaced at the right time. If not, the entertainment facility will be viewed as out of date,and may damage the mall's overall image. Development like this is often very costly, withno guaranty that it will create a significant increase in the malls revenue. It may thereforebe more beneficial to integrate an entertainment component with the various retailers. TheWalt Disney store located at Eaton centre in Toronto provides its customers with anentertainment experience within the retail context.176A second strategy is for the mall to create smaller events, of a more temporarycharacter. This may not cost as much to arrange or take up significant GLRA (Doocey,1992b). Smaller but carefully planned events can create a strong pull-effect on customers.The "Be a Video Star" event at the Eaton Centre in Toronto 1991 is a good example.Participants were asked to impersonate famous pop singers on video. In addition to the5,000 people that showed up on the opening day, the event gave the centre much localmedia attention. The media attention was estimated to be worth more than $ 100,000 infree publicity. Sales rose during the promotion between 2% and 18% (Silbey, 1991, p.7).177CHAPTER 6CONCLUSION AND RECOMMENDATIONSThis study traces the development of the regional shopping centre industry inCanada. In doing this, special attention has been given to a variety of factors that havecharacterized this development. The study shows that the industry today tends to followold practises, based on old perceptions. But new strategies are needed for regionalshopping centres to deal with the new and difficult conditions in the market today.Regional shopping centres initially experienced rapid and steady growth. From theopening of the first regional shopping centre and throughout the 1960's and 1970's, thenumber of centres grew significantly. Regional shopping centres soon became asubstitute for the town centres which the suburbs never had. The centres quickly becamethe most successful phenomenon in the retailing industry, and penetrated deep into thecountry's economy as well as its social fabric.In this early period there is a strong inter-relationship between regional shoppingcentres and department stores. Later, national chain store organizations also becomeanother important actors. Together with a small number of developers that have beenresponsible for the creation and management of numerous regional centres in Canada,these three actors have combined to significantly influence Canada's retail environment.As a result, regional shopping centres not only look the same, they also use similaroperational methods.178In the 1980's even more centres were constructed, and large numbers wererenovated and enlarged. The aggressive and expansive growth of the regional shoppingcentre industry could be accommodated as long as the consumer market was able toabsorb the growth. Today, however, there are as many good reasons for a stagnationin their development as there were good reasons for them to grow in the first place.Today, consumers are demanding more from retailers, and in turn regional shoppingcentres. Consumers are more sophisticated and educated about products and services.Whereas before consumers demanded good prices and quality, today's consumer is alsoconcerned about the time spent on shopping, the overall shopping experience as well asthe services provided. Consumers are spending less time and money on shopping forgoods than before. Consumers tend to visit regional shopping centres less frequently,staying for shorter periods, and visiting fewer stores on each trip. The excitement thatregional shopping centres once created has left the industry. People report that they aretired of the similarity in most centres' appearances, tenant mix and the events the centresset up.Regional shopping centres are also confronted with competition from an increasednumber of newer retail outlets and shopping centre concepts. These shopping centresprovide for retailers seeking a market niche through specializing in certain marketsegments, such as price and selection. As a result, regional shopping centres arestruggling to catch up to the new trends or are simply fighting to remain distinctive.Aside from the competitive forces at work, regional shopping centres have beenforced to struggle with structural changes in the economy. A lingering recession has been179difficult for many retailers and especially the shopping centre industry. When combinedwith GST and free trade, regional shopping centres are truly battling for survival.The regional shopping centre industry is also faced with a significant change intheir relationship with national chain store and department store organizations. Whereasthese three actors formerly relied on each other's support in business, each now isexperiencing internal challenges that are affecting this relationship. The power distributionwithin this relationship has changed, and has forced each of them to become moreindependent.This study reveals that the regional shopping centre industry has, until recently,tended to develop in the same direction, employing similar strategies. This is why manymalls are experiencing the same or similar problems. There is little doubt that the regionalshopping centre industry will go through a significant period of flux, in which a largenumber of centres will either be forced to close down or to adapt to the new retailconditions.There are many views on where the industry should go from here. Some retailanalysts suggest that a successful mall is either at the high end of the market in whichconsumer service and prices are both high, or at the low end, with discount prices andself-service. Many Canadian shopping centre developers are closely watching theirAmerican colleagues for new, successful trends. Few Canadian malls, however, seem tobe able to break loose and take the first step in a new direction.This study suggests that the primary characteristic of this period of flux will beregional shopping centres' efforts to reposition themselves in the general retail180environment. The regional shopping centre industry will move away from the original ideaof being everything for everybody. It will become more important for centres to distinguishthemselves from each other, and rid themselves of their stereotypical image. They willsearch for a market niche that will provide them with a unique character and image. Onlythose centres that are prepared to rethink their entire business strategy and makesignificant changes in their operational management routines will survive and secure theirposition in the future retail environment.This study predicts that there will be a return of regional shopping centresspecializing in serving people at a community level. These centres will have a largenumber of tenants offering merchandise suited for the local market. For example, retailersthat cater to a specific ethnic group that predominates in the community. At the sametime, centres will also house important community services such as libraries, health carecentres or police offices. There will also be a need to relate these centres in a physicalsense to the local community. For example by positioning the structure closer to eithercommunity amenities and facilities. This contrasts with the current practice of isolating thecentre from the community.There will also be an increased number of regional shopping centres involved inmixed use development. These centres will expand and offer more than a simpleshopping environment. These centres will encourage such non-retail facilities as hotels,office buildings, entertainment and amusement facilities to locate close to the centre. Insome cases the retail centre itself will incorporate such mixed-use development. Thesecentres will become more like town centres in the traditional sense. People will live, work,181shop and be entertained at these centres. Finally, this study predicts that there will be amore regional shopping centres specializing in low prices and large selection. In doingthis, centres will replace their old anchors and smaller tenants with "category killers".These anchors will have a strong image, and should change peoples perception of thecentres' in general.The contemporary changes that regional shopping centres are facing provide theindustry with numerous options for future directions. It is a challenging opportunity forthem to reinvent themselves. But if they do not react quickly, they will lose valuablemarket share to new and aggressive retail concepts. 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U.S.201LIST OF INTERVIEWSA series of interviews of shopping centre development companies, mall managers,architects and retailer and located in shopping centres was conducted by the author.These interviews provided the study with valuable information about the current conditionsin the shopping centre industry.George Stewart. Senior Vice President at Trilea Centres Inc. Vancouver, June 3, 1992.Pam Bryson. Mall Service Manager at Trilea Centres Inc. Brentwood Mall, June 19, 1992.James Gilbert. Auld-Phillips. Chillowack, July 2, 1992.J. Lorne Braithwaite. President. Cambridge Western Leaseholds. Ltd., July 24, 1992.David Chard. Director, Development Western Region Shopping Centre Group, August 26,1992.Jim Badour. General Manager, Cambridge Western Leaseholds. Ltd. Oakridge Centre,September 8, 1992.Jeffery P. Burton. Trilea Centres Inc. Vancouver, September 9, 1992.Marlis Spanton. Manager, Surrey Place Mall, October 10, 1992.Norman Hotson. Hotson Bakker Architects, February 23, 1993.David Turner. Thomas Consultants Inc., February 24, 1993.APPENDIX ADESIGN AND LAYOUT CHECK LIST202DESIGN AND LAYOUT CHECK LIST.1. EXTERNAL DESIGN AND LAYOUT.1.1 Building structure1.1.1 Materials1.1.2 Colours1.1.3 Windows1.2 Parking1.2.1 location1.2.2 layout1.3 Entrances1.3.1 Design1.3.2 Number1.3.3 Location1.4 Accessability1.4.1 Pedestrian accessability from A) streetsB) residential areasC) public transportationD) shopping centreparking lot1.4.2 Accessability for car traffic1.5 Landscaping1.5.1 Trees1.5.2 Flowers1.5.3 Pedestrian paths1.5.4 Sculptures, fountains2032. INTERNAL DESIGN AND LAYOUT2.1 Mall walk-ways2.1.1 Layout2.1.2 Width2.1.3 Materials2.1.4 Colours2.2 Lighting2.2.1 Artificial2.2.2 Natural2.2.3 Layout/ Arrangement2.3 Seating areas2.3.1 Number2.3.2 Layout2.3.3 Decorations2.4 Use of themes2.5 Store front2.5.1 Signage2.5.2 Colours2.6 Decorations2.6.1 Plants, flowers2.6.2 Sculptures, water fountains2.6.3 Seasonal decorations2.7 Consistency in design styles2.8 Public information2.8.1 Signage2.8.2 Maps, and directories2.8.3 Information boots2.8.4 Flyers, advertisement2042.9 AtmosphereAPPENDIX BSTANDARD INTERVIEW CHECK LIST205206STANDARD INTERVIEW CHECK LIST.1. Questions regarding expansions, dates, particular construction, depending oncircumstances.2. Relationship with tenants, including rents, space leased and importance for:2.1 Department stores2.2 Chain store tenants2.3 Independent retail tenants2.4 Service oriented tenants2.5 Public service tenants2.2 Describe any changes to tenant relationship which have occurred.2.3 Forecast the future for each category2.4 New potential tenants?3. GENERAL DISCUSSION ABOUT THE FUTURE OF REGIONAL SHOPPINGCENTRES WITHIN THE TOTAL RETAIL INDUSTRY.3.1 Major challenges3.2 Suggested marketing strategies4. CONSUMERS.4.1 Target market4.2 Is the market changing?, In what way?4.3 How will the centre adjust to the change?5. REGIONAL SHOPPING CENTRES IN THE URBAN LANDSCAPE.5.1 Role within the communities they are located in5.2 Active participation in urban development process.A) Public transitB) Town centresAPPENDIX CTENANT CATEGORIES207208TENANT CATEGORIESStatistics^Canada's^publication^Standard^IndustrialClassification was used to categorize the shopping centres tenants.Each of the categories is given a SIC-code which provides differentinformation about each category. In most cases only the fist twonumbers are mentioned, but if more detailed information is requiredthree or four numbers are listed. The following list shows thecategories that are used in this study and their SIC codes. In somecases categories were merged together into a broader category andgiven a short name, while in other places categories with same SIC-code were split up and given different names. This was done tocreate more useful categories for the purpose of this study.TENANT CATEGORIES.TENANT CATEGORY ABBREVIATION^SIC-CODE^GOODS/NON-GOODS OREXCLUSIVE TENANTDepartment store Dep^6411^GVariety store Var 6412 GGrocery andSpecialty food store F^6011^GWomen's clothing /CL 6131 GMen's clothing store \CL 6121 GChildren's clothing -CL^6141^GUnisex clothing XCL 61 GShoe store Sh 6111 GHome furniture, fur-niture and equipt-ment store H^ 65^GMiscellaneous store M 65 GCigar & Tobacco store S -- GEating and drinkingplaces Eat^92^GBanks B 70 NGInsurance I 73 NGReal estate comp. R 75^NGPersonal service Ps^97 NGVideo outlets andmovie theatres My 9612^NGAmusement services Am^963 NGMedical and dentalservices D 86^NGTravel agencies T 99 NGLiquor stores, LibraryLotto booth P^48/85^NGBeauty and healthcare centre Be 97 NGOffices Of --^NGShopping centreservices Cs^-- N/AVacancies V --^N/AUncategorized tenants ? -- N/AUnder construction Uc -- N/ASOURCE: STATISTICS CANADA STANDARD INDUSTRIAL CODE REGISTER. 1988209APPENDIX DMAPS210CIIY.OF NORTH VANCOUVER1• • • - •r'i•----WEST^\ DISTRICT OF NORTHVANCOUVER t^VANCOUVERDELTAA^ •^ •1..1FIREYCOQUITLAMMAP 1. THE MAJOR ROAD NETWORKS IN THE GREATER VANCOUVER AREA. 211TRANS-CANADA HIGHWAYHIGHWAY 99LOGHEED HIGHWAYKINGSWAYKING GEORGE HIGHWAYFRASE HIGHWAYNEW WESTMINSTER HIGHWAYSKY TRAINPATTULLO BRIDGELIONS GATE BRIDGESECOND NARROWS BRIDGE AIOAK STREET BRIDGENO.1 BRENTWOOD MALLNO.2 CAPILANO MALLNO. 3 IOUOTEED MALLNO.4 OAKRIDGE CENTRENO.5 RICHMOND CENTRENO.6 SURREY PLACE MALL212Co.quitlainDowntownVancouver 1Lonsdale• Burnaby^3estauruaWballey/Guildford4'.--"2*XVMAP 2. THE SIX REGIONAL TOWN CENTRES IN THE GREATER VANCOUVER AREA. NO.1 BRENTWOOD MALLNO.2 CAPILANO MALLNO.3 LOUGHEED MALLNO.4 OAKRIDGE CENTRENO.5 RICHMOND CENTRENO.6 SURREY PLACE MALL213


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