Planned Shopping Centers

The nature of retailing in America has changed immensely over the years, and perhaps nowhere more than in the area of planned shopping centers. Since World War II they have diffused, proliferated, and changed in ways that were unimaginable to Americans a century ago.

Planned shopping centers have five identifying characteristics. They are retail centers that: 1) have been carefully planned; 2) are unified architecturally; 3) are distanced from through traffic; 4) include on-site accommodations for parking; and 5) are under single control.

This short summary will describe four ways in which planned shopping centers may be classified, will touch on some aspects of their planning and internal layout, and will briefly examine their history and future.

Classifications

One way that planned shopping centers are frequently classified is by size and customer drawing power. The largest, traditionally referred to as "super-regionals," occupy sites in excess of 80 acres, have gross leasable floorspaces in excess of 750,000 square feet, and have primary trading areas (accounting for about 75% of sales) that may extend out to 50 miles or one- hour of travel. "Regional" centers have traditionally had sites in excess of 30 acres, gross leasable floorspaces in excess of 300,000 square feet, and primary trading areas that stretch to ten miles or twenty minutes of travel. Below these in a hierarchy are the smaller "community" and "neighborhood" centers, with customers coming from more limited areas.

A second way to differentiate centers is by retail specialization. Most centers offer a mix of goods and services and are relatively unspecialized. Some shopping centers, however, have been planned as specialized centers. Possible specializations include high fashion, home improvement, and factory outlet stores. Finally there are the "theme centers" that cater to an unusual market segment or capitalize upon the unique characteristics of a location. They may create a festival atmosphere by featuring a mix of boutiques and ethnic foods within a restored historic building or other interesting structure. Some have become tourist destinations to be experienced, rather than places to shop for particular items.

Location is another way in which planned shopping centers differ from one another. Some centers are located in the central cities of metropolitan areas, occasionally in the central business district. Others are located in older suburbs, newer suburbs, or the "urban shadow" beyond. It is even possible for a planned shopping center to be located in a predominantly rural area well removed from any metropolitan area.

A final way to classify centers is by spatial layout. It is common for businesses in older and smaller centers to be arranged in a strip, with storefronts in a straight line. Variations on this basic form would include "L" and "U" shapes. Another arrangement is the open island, surrounded by parking, where people walk from one business to another in the open air. Also familiar to Americans is the closed, climate-controlled mall, which may have several different levels.

Extensive Planning

Planned shopping centers are major investments that have been extensively planned. Market analyses are made. Good accessibility, availability of utilities, and land costs are all considered.

Planned centers may have considerable advantages over unplanned shopping areas. Parking is provided on site, and planners want shoppers to walk no farther than 400 feet before reaching the retail area. Within the retail area traffic does not interfere with pedestrian movement. And, of course, in an enclosed mall lighting and climate can be controlled.

Designs can be particularly attractive and effective at maximizing sales. Planned shopping centers often have an abundance of "street furniture," including benches and plants. Sculptures and other landmarks provide some sense of place. Ease of pedestrian movement is often a goal, with corridors as narrow as 35 feet allowing shoppers to cross frequently from one side of a corridor to the other. Planned as a whole, major attractions can be placed in corner locations to draw pedestrians past secondary businesses and impulse buying opportunities. Some businesses--a pet store or ice rink, for example--may be included in the retail mix simply because they enhance the overall shopping experience. Single-purpose trip generators such as a beauty parlor, movie theater, or realtor will be relegated to the periphery.

Past, Present, and Future

America's first planned shopping center may have been Roland Park, which was built in Baltimore in 1907. It had a strip form, was architecturally unified and planned as a whole, and was set back and separated from the street by parking for carriages.

In the first half of the century there were a number of innovations, but the overall number of planned shopping centers in America was still only about 100 by 1950. The Country Club Plaza in Kansas City (1923) was the first to be designed specifically for customers arriving by automobile; designed to be reminiscent of Spain, the attractive development is still flourishing today. Highland Park in Dallas (1931) was the first center to have its stores turned away from traffic. River Oaks in Houston (1937) was first to have a merchants' association and to base rents on a percentage of sales. Northgate in Seattle (1950) was first to have a full-line department store as its biggest draw ("anchor"). Southdale in Minneapolis (1956) was the first two have two anchor tenants; it was also an enclosed mall with stores on two levels.

The number of planned shopping centers increased dramatically during the second half of this century, and innovations continued to change their appearance and function. The number of planned shopping centers in America rose from approximately 8,500 in 1965, to 18,500 in 1975, 27,000 in 1985, and 42,000 in 1995! Many were planned and built in newer suburban areas; Ross Park north of Pittsburgh (1986) is in such a location. A few were built in the central business districts of American cities; Chicago's Water Tower Place (1976) is a well- known example. Others were theme centers designed to create a shopping experience; Boston's Quincy Market (1979) fits into this category. A few were enormous "megamalls," including the Mall of America in Bloomington, Minnesota (1992). The latter has been described as an "urban entertainment center" where it is relatively safe to enjoy one's self; it features a seven-acre amusement park, fourteen-screen movie theater, and signature restaurants such as the Rainforest Cafe.

It seems safe to predict that planned shopping centers will continue to be built in substantial numbers. What appears likely to change are the types of locations that will be selected and the nature of these malls, as the industry continues to evolve. For one thing, developers appear ready to experiment increasingly with rural locations that are inexpensive to acquire, perceived to be relatively remote from urban and suburban problems, yet readily accessible via interstate highway. They also appear ready to experiment with a new type of specialized center that features factory outlet stores selling name-brand merchandise at reduced prices. To keep overhead low, outlet malls may not be enclosed and may feature fewer of the elaborate design features built in to many upscale centers in the suburbs. The Grove City Factory Shops in Pennsylvania (1995) may be representative of one of the new trends that we will see in the near future.

 


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Last Revised:  March 31, 1996