Exploring Retail Success and Decline: A Case Study of Liverpool City Region
Consumer Data Research Centre
Promoting the use of consumer data and research to provide insight into societal and economic challenges (ESRC funded)
In the ever-evolving world of retail, understanding the factors that contribute to the success or decline of retail spaces is crucial. A study of Liverpool City Region provides valuable insights into this topic, exploring the transformation of the retail landscape over the past two decades and its implications for the future.
The changing retail landscape:
The study highlights that the retail economy has undergone significant changes over the past two decades, largely due to competitive and economic shocks, including the rapid increase in online sales. This shift has led to the decline of many traditional 'bricks and mortar' retail businesses. However, the degree of decline varies geographically, with some places demonstrating more resilience than others.
The researchers chose the Liverpool City Region (LCR) as their case study, a region that showcases notable examples of variability in retail success and decline.?
Data and methodology:
The economic performance of retail centres was measured primarily by the vacancy rate, a reliable indicator of both structural and acute problems faced by traditional shopping spaces, using data from the Consumer Data Research Centre. The researchers also created a conceptual typology of sub-regional retail centres, linking their economic performance to success or failure in strategic positioning.
Key findings and their importance:
The study highlights the dynamics of retail centres in LCR, shedding light on their form, function, and economic performance. The composition of retail centres vary according to their location. Smaller district centres play a crucial role as localised hubs with convenience goods, while comparison goods retailers thrive in main centres and suburban areas, and retail parks are more prominent in leisure and food shopping. However, there has been a shift towards leisure services in the major centres.?
The study found that the economic performance of retail centres varies spatially. Liverpool City Region’s town centres struggle with higher vacancy rates than the national average, with more deprived areas experiencing higher rates, whilst affluent areas are more resilient. Moreover, retail and leisure parks generally fare better, some outliers exist. This is significant as it highlights the need for localized strategies to address the challenges faced by the retail sector and the need for strategic interventions to ensure the viability of retail centres in the future.
The research also discusses various interventions and adaptations to address these challenges, including the implementation of 'town centre first' policies and the integration of digital experiences such as 'click and collect' facilities, free Wi-Fi, or store-finding apps. These findings are crucial as they provide a roadmap for retail businesses and policymakers to navigate the changing retail landscape.
Publication: Dolega, L., & Lord, A. (2020). Exploring the geography of retail success and decline: A case study of the Liverpool City Region.?Cities,?96, 102456. DOI: https://doi.org/10.1016/j.cities.2019.102456
CDRC Data: Retail Centre Boundaries and Open Indicators - https://data.cdrc.ac.uk/dataset/retail-centre-boundaries-and-open-indicators?
Local Data Company – Retail Type or Vacancy Classification -? https://data.cdrc.ac.uk/dataset/local-data-company-retail-type-or-vacancy-classification?
People: