Summary of Literature

Power of Choice: Spatial Convenience in Adaptive Use Development of Retail Centers in Urban Environment

A Summary of the Literature

The success of online platforms has dramatically impacted the retail experience. 

In recent years, in-person retail locations have been forced to rethink their business model to compete with giants like Amazon. Many have not been successful, leaving retail real estate empty. This literature review will examine human behavior's impact on the built environment by exploring the psychology of choice, customer decision-making, convenience appeal, and retail centers' future. Evaluation of such a topic will be helpful concerning post-graduate interests in real estate and development within the hospitality and retail market sector.

Psychology of Human Behavior

The exploration of human behavior is a critical factor in the success of the built environment. Understanding how individuals make decisions is foundational to the development of the customer-driven design. As defined by Richard H. Thaler, Cass R. Sunstein, John P. Balz, Choice architecture examines how external factors consciously and subconsciously help people make choices without forcing a particular outcome (Thaler et al., 2014). 

Psychology of choice by Waude supports Thaler, Sunstein, and Balz and explains how instinctive needs affect our decision-making, the importance of choice presentation, and social influences (Waude, 2016). However, "Everything You Need to Know About Psychology of Choice" provides an alternative view. Its view is the power of choice is the purest form of free will, yet many fear making a decision out of fear of making the wrong choice. (Everything You Need to Know about the Psychology of Choice, 2015). 

These publications and analysis of TED Talks will provide a well-rounded assessment of choice theory and the mental mapping of selection.

Convenience

Under the premise of consumption, convenience typology evaluates space, service, time, economy, and other characteristics. Thomas Anderson's research attempts to classify convenience typology, specific to food consumption, by familial demographics (Anderson, 1971). While the analysis of food consumption does not directly affect this research, the attention to socioeconomic demographics will be a useful tool for analysis.

Michelle Morganosky based her research on the comparison of cost vs. convenience-oriented consumers. The analysis categorized convenience-oriented consumers by demographic, lifestyle, and value perspectives (OpenAthens / Sign in, n.d.). The paper includes robust data to support their definition of cost-oriented and convenience-oriented consumerism to food, clothing, and household equipment.

Tulay Girard, Pradeep Korgaonkar, and Ronnie Silverblatt explore the in-person shopping experience concerning the online experience. Their research is also based on demographics and lifestyle and focuses on two metropolitan areas in the southern United States. Their findings suggest shopping orientation, including recreational and convenience, age, gender, race, are directly related to purchase preference but are dependent on product type (Girard et al., 2003).

Spatial Convenience

         Spatial convenience is directly associated with real estate development. Evaluating the consumer's needs based on layout and adjacencies can play an essential role in a site's success. Teng Zhong, Guonian Lu, Xiuming Zhong, and Haoming Tang investigate the theory of lifestyle convenience. While it is a complex topic to quantify, the authors use-multi-sourced urban data and geo-design techniques to compute the living convenience of a specific area in Kaifeng City from Henan Province, China. They argue human-centric planning by measuring "perceptual-based quality, and detailed mapping of living conveniences in buildings can assist in efficient planning strategies toward more livable and sustainable urbanism" (Zhong et al., 2020).

Rise of Lifestyle or Town Centers

         Human-centric planning is at the forefront of urban planning, most recently in the form of centers. According to Robert Gibbs, centers are categorized into six groupings: corner store, convenience center, neighborhood center, community center, regional center, and the lifestyle (town) center. The purpose of this paper will focus on the lifestyle/town center. While developers have found benefits in lifestyle centers as an all-in-one development, they pose a threat to historic downtowns (Steuteville, 2007). However, this comparison will not be analyzed in length for the purpose of this paper.

Gibbs outlines the attraction to this type of development as more consumers desire to be less reliant on cars for transportation. Employers are also moving offices into these centers to be near their employees. The amenities in mixed-used development are moving away from relying on retail to anchor the site and looking for more experimental spaces to attract renters (Steuteville, 2019).  

Jeff Wardwick challenges the idea of a lifestyle center and postulates that it is merely a "dressed up shopping mall." While the author outlines the differences between a lifestyle center and a mall, he explores its history, relevance, and longevity by referencing sources such as ICSC, the Urban Land Institute, notable architects (Hardwick, n.d.).

Fall of Retail Centers and Reinventing the Mall Experience

         Not too long ago, a consumer would go to a store in search of an item. That has changed with the brilliant strategy of Jeff Bezos, and others are falling suit. Retail center owners are in desperate need to play catch up, yet not many are adjusting. Remodels are costly and likely a low return on their investment. 

Retail renters are scarce.  Pamela Danziger explores the fundamental flaw of retail centers, the rise of lifestyle centers, and the importance of convenience and relevance. 

By exploring three C's: convenience, cultivate, and culture, developed by Oliver Chen, managing director of retail and luxury sector at Cowen and Company, owners may have a chance at transforming the shopping experience (Danziger, n.d.). He provides details on each topic which could benefit site owners.

         Gensler is one of the leading architectural and design research firms in the world. Based on their research, consumers visited shopping centers for functions other than shopping. They urge owners to give consumers what they want and have created five strategies for effective redevelopment: a design for experience per square foot, provide variety, create transparency and permeability, improve connectivity to the surrounding city, create third places. (Reinventing the Mall | Dialogue 35, n.d.)  Analysis of the data will help formulate best practices for the future.

The firm offers four examples of repositioned case studies. The sites will be evaluated based on location and architect to determine if they are suitable for this paper.