The Economic Impact of Shopping Centers on Local Retail Businesses: The Case of TR33 Region
Synopsis
The retail sector is a key player in shaping society's economic and social well-being by providing people with different choices and services. Over the past forty years, shopping malls have emerged as major players in the sector in Turkey, spreading from large metropolitan areas to smaller settlements and rural regions. The increasing number of shopping malls has impacted local retail businesses and consumers in many ways. This situation has triggered significant changes affecting both producers in the retail sector and consumers, such as increased competition, diversification of goods, a surge in advertising campaigns, expansion of entertainment options, widespread use of credit cards, and improved quality. Although this wave of change surrounding the entire sector was initially seen positively by consumers, it faced strong resistance, especially from traditional local retail businesses.
In the literature, studies related to shopping malls can be grouped into two categories: The first group focuses mainly on the adverse effects of modern, large shopping malls on small and traditional local retail businesses. These studies have concluded that the increased competition from shopping malls has led to a decline in local retail businesses' sales, profitability, employment opportunities, etc. However, as the perception of shopping malls as structures resulting from economic development and seen worldwide gained acceptance, studies exploring their positive effects on consumers and local businesses began to emerge.
This study aims to measure the quantitative economic impacts of shopping malls on local retail businesses in four provincial centers in the TR33 region (Kütahya, Afyon, Manisa, and Uşak). For this purpose, a survey was conducted among local businesses operating inside and outside shopping malls in the TR33 region, and 785 businesses participated. The results of the study indicated that the opening of shopping malls has led to an increase in employment opportunities, sales volume, profitability, and customer numbers for local retail businesses.