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POWER NODES: DOWNTOWNS IN THE PERIPHERY Jim Simmons, Centre for the Study of Commercial Activity,

POWER NODES: DOWNTOWNS IN THE PERIPHERY Jim Simmons, Centre for the Study of Commercial Activity, Ryerson University, Toronto Canada. Outline: Three Stages of Commercial Structure A Focus on Power Retail Power Retail in Context Power Nodes The Implications and Future of Power Nodes.

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POWER NODES: DOWNTOWNS IN THE PERIPHERY Jim Simmons, Centre for the Study of Commercial Activity,

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  1. POWER NODES: DOWNTOWNS IN THE PERIPHERY Jim Simmons, Centre for the Study of Commercial Activity, Ryerson University, Toronto Canada.

  2. Outline: • Three Stages of Commercial Structure • A Focus on Power Retail • Power Retail in Context • Power Nodes • The Implications and Future of Power Nodes

  3. Three Stages of Commercial Structure a) Traditional Retail Small family-owned shops Transit-oriented Highly competitive, but inefficient

  4. TRADITIONAL RETAIL STREET Traditional Retail Photo

  5. b) Shopping Centres Large shops, retail chains Single ownership, anchor store Based on spatial and sectoral monopolies

  6. MAP OF SHOPPING CENTRE Department Store Anchor

  7. Power Retail • Huge stores, big box chains • Automobile access • Compete using price, selection and • brand marketing

  8. POWER RETAIL: DEFINITIONS Big Box Store: Retail outlets that are typically at least three of more times larger than other stores in the same retail sector, as measured by floor area. Power Centre: A cluster of three or more big box retailers with a shared parking lot, and perhaps ancillary commercial services such as coffee shops. Power Node: One power centre with additional big box stores and other power centres and malls within one kilometre radius, typically centred on a major intersection.

  9. POWER NODE PHOTO Power Centre Photo

  10. Home Depot Highway Interchange Supermarket Parking Lot RioCan BurlOak Power Centre

  11. THE GREATER TORONTO AREA Population, 2001 5,297,000 Population, 2009 6,114,000 Population Change 817,000 Growth Rate 15.4 per cent (2001-2009) Income per capita $31,000 (2006) Market Income $172.5 billion (2006) Population born outside Canada 45.7 per cent (2006)

  12. HOW BIG ARE THE POWER NODES? • The Biggest Nodes in the Greater Toronto Area • Floor Stores Big Power Shopping Growth Rate, • Area* Boxes CentresCentres 2001-2010 • 1. 3,450,000 250 74 5 3 45.3% • 2. 2,837,000 506 49 4 7 56.1 • 3. 2,112,000 296 40 3 4 56.4 • * Floor Area in Square Feet

  13. COMMERCIAL FACILITIES: GTA, 2010 Source: CSCA fieldwork

  14. WHO SHOPS WHERE? (Above Average Proportions) Traditional Retail Apartment Dwellers Small Families Seniors/ Retirees Transit Users Shopping Centres Women Young People People not Working Customers who Travel from Home as Passengers

  15. Power Retail Home Owners Multi-Car Households Men, Middle-aged Blue Collar Occupations Customers who Travel from other Retail, as Drivers Source: Centre for the Study of Commercial Activity, using the Transportation for Tomorrow data.

  16. The Future of Power Nodes The Good: Efficient (Inexpensive) Popular with young families Attracts retail investment The Bad: Low Density Automobile-oriented Weakens existing town centres Unattractive to seniors, transit users Weak Internal structure Poor links with community

  17. Vulnerable? Environmental policies Higher energy costs Land use restrictions Higher land costs Demographic changes (aging, immigration) On-line Competition

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