SHOPPING CENTRE CONCEPT EVOLUTION: AN HISTORICAL ANALYSIS OF THE AUSTRALIAN EXPERIENCE Jane Roberts University of Newcastle Bill Merrilees

Griffith University

Abstract A five-stage framework is used to analysis changes in the evolution of shopping centre developments within Australia. Key findings highlight the trend towards larger scale retail formats and the continuing importance of entertainment , services and the social element in supporting the retail concept. Additionally, there has been an increasing codification of the leisure experience.

Introduction Shopping centres have significantly impacted on the way we shop. The first shopping centres were radical, not only in scale, but in their underlying ideology which set out to create utopian civic centres. Shopping centres have been so successful, that they have been effectively assimilated into the environment and are now simply taken for granted. Little, however, has been written about the evolution of shopping centres in the Australian context. The purpose of this study has been to examine the development of shopping centres in relation to how the shopping centre concept has evolved over time, particularly their design and their retail focus and what that means for the consumer. The key components of the shopping centre concept , which include retail, services, entertainment and the social element, will be examined as to how they have changed over time in terms of form, structure and codification. A brief outline of the successive stages of shopping centre developments will follow which will then be examined more critically through the changes in focus of the key features in the Australian context. The changes will then be evaluated in terms of the usefulness of the fivestage framework.

Stages of Shopping Centre Developments in America The shopping centre is largely an American concept and the growth of the shopping centre industry there has been well documented, (Maitland,1990; Ghosh and McLafferty,1991). It is thus appropriate to use American studies as a basis for identifying the five stages of shopping centre developments for our paper. The first style of shopping centre, such as Raleigh in America in 1949, while essentially reflecting a traditional retail strip format, was centrally managed with a uniformly themed appearance. A further innovation was that it focused on separating the pedestrian from the car. The Stage Two centres, which began to develop in 1958, took this concept further and separated the pedestrian from the outdoors by making the centres fully enclosed. In these climate controlled consumer spaces, a further element was incorporated, that of the leisure/entertainment dimension. Examples of these features included

cinemas, cafes, childrens amusements and the provision of entertainment such as live performances and fashion parades. The Third Stage, sees leisure and entertainment in shopping centres being more explicitly badged, marketed and managed as part of the shopping centre concept. Such change began to occur in the US in the 1980s, as the traditional shopping centre shopping centre anchors, the department stores, went into a period of decline. Shopping centre managers sought different approaches, such as the themed restaurants, theme parks, much larger cinema complexes and a greater focus on food (Maitland 1990). The Fourth Stage is characterised by specialisation, with centres focusing upon one particular retail area, such as fashion, bulky goods, furniture, home and garden, food or convenience, often in a large retail format. There is no longer an assumption that centres will provide a one-stop shopping service, but rather, they cater for a segmented and highly mobile consumer population. This style of centres was the most popular shopping centre development in the 1990s. The Fifth Stage of shopping centres is still emerging. Key characteristics however, are an increase in mixed-use developments, such as factory outlets, cinema and food, or office, residential and convenience goods (Beyard & OMara 1998).

The Australian Context The five-stage development framework was found to apply to the Australian context, although generally following a slightly later time period. The first Stage 1 centres appeared in Sydney and Chermside in 1957. Chermside promoted itself as the first drive-in centre, with initial parking for 650 cars, and included a department store, supermarket, 24 specialty stores, a child minding centre and office space (Kingston 1994, p.96). Roselands in Sydney, which opened in 1965, typified the Stage 2 centres. It was fully enclosed with 339,350 square feet of retail space plus an additional 115 140 square feet in public space. Grace Bros department store was the major anchor, plus a Coles variety store and supermarket, and 95 specialty stores. Key features of Roselands were its internal landscaping, which included a Raindrop fountain, ponds and sculptures and its Four Corners food hall, with 14 outlets to choose from. Additionally, there were a wide range of community services, such as a Town Hall and child minding service, as well as health service providers and banks. Roselands also had a cinema, which was also used for live television broadcasts from the centre, and the Rendezvous Lounge for relaxing and meeting friends. The first Stage 3 centres began to emerge in the mid 1990s. These centres, such as Westfield Parramatta and Westfield Tuggerah firmly placed entertainment as an integral part of the shopping centre dynamics. While Tuggerah opened, ab initio, as Stage 3 centre, Parramatta evolved into one. It opened in 1975 as a Stage 2 centre. Following the 1995 redevelopment and expansion, it included an 8 screen multiplex cinema as well as Intencity, an interactive entertainment complex. The centre added a second department store, David Jones to its anchors, along with Grace Bros, and had a total of 350 specialty stores, including 2 food courts with over 40 outlets. The first Stage 4 specialty centres also began to emerge in the mid-1990s. The first factory outlets were opened in Birkenhead Point and Maroubra in Sydney. The first power centres were Moore Park (Sydney) and Stockland Glendale (Newcastle) in 1996. Specialist convenience centres have more recently emerged, such as in Charlestown strip zone in 2000, which contains mostly fast food outlets. These centres almost replicate the neighbourhood strip streets, but are centrally managed and there is little relationship between residential locality and users of the centre. Over the past few years the most rapidly growing type of

centre have been the bulky-goods ones, with an emphasis on furniture, electrical and furnishings. Stage 5 centres are still evolving. Examples are the Paddys market development, which includes a cinema complex, factory outlets, specialty foods on top of the traditional variety markets underneath. The most dramatic representation of this new mixed-use type of centre is Harbour Town on the Gold Coast, which opened in 1999. It combines numerous factory outlets with an entertainment (cinema) complex, together with a wide variety of cafes and restaurants. The Leichardt Forum, in Sydney, combines residential, high-end retail, convenience centres and cafes and restaurants, within a replica Italian piazza.

Changes in Key Concepts How then, have the four critical components of shopping centres, retail, services, entertainment and social, changed over time. Retail The retail component has been dynamic throughout the history of shopping centres, but remains the most dominant element of the ubiquitous Stage 3 centres. Department stores such as Grace Bros/Myers or David Jones, remain as key anchors, as do the large supermarkets. Food, fashion and homewares have become increasingly integral elements in the retail mix. However, there has been an increasing homogeneity in the retailers found in shopping centres across Australia. When centres like, Chadstone and Roselands initially opened, there were very few retail chains. The shopping centre industry encouraged the growth of chains through the process of inviting successful tenants of existing centres to open branches in new developments. The Stage 4 centres focus on a specific retail format to suit their particular area of specialisation, whether it is a mix of factory outlets, boutiques, food, convenience or bulky goods. While these centres, have generally adopted large scale formats for their retail outlets, they do not try to provide a total retail mix. Stage 5 developments, also have a specific focus, however their retail mix complements and supports the other elements of the shopping centre. Services The provision of services was a key element for Roselands at the time of opening. It provided outlets for the post office, TAB, laundromat, medical benefit funds, Department of Main Roads, chemists, a family doctor and dentist, petrol outlets, banks, free strollers and wheelchair access, free child care services, community halls, a courtesy bus and parcel pickup. Roselands has maintained a high level of service providers in the centre. For example, health services and strollers are still available and the community hall is still used for groups such as Red Cross, Country Womens Association, Weight Watchers and Tai Chi. A child minding service is provided, though it was incorporated within a homewares/coffee shop. Westfield Paramatta, also retains key service elements, such as access by public transport, ample car parking, and the provision of health facilities. However, where services can be tenanted to other providers, this has been done so. For example, the child-minding centre, although promoted as a response to Westfields community initiative, is funded by State and Federal governments and run by Parramatta Council. Stage 4 and 5 centres do not try to provide a total customer environment, but they should be mindful of making the centres accessible. Their main service to the consumer is in the form of cheaper prices, better comparison shopping, better access to leisure and entertainment and greater convenience.

Entertainment Even though Roselands opened as a Stage 2 centre, entertainment was a critical underpinning for the retail component and is perhaps the aspect that is remembered most by shoppers at the time. Bands like the Beach Boys performed there, fashion parades, live television broadcasts, including Bandstand took place, a cinema was included, as was a wide range of entertainment facilities for children. Various promotions and competitions were held regularly. Much of the activity took place around the landscaped central court, in which the Raindrop fountain presided - a spectacular water feature with accompanying ponds. There were also climbing sculptures for children in view of the fountain. Entertainment, as evidenced by Westfield Parramatta, has also been a critical underpinning for the retail component. However, as with services, the entertainment has been positioned as a tenant rather than as an activity provided by the centre. Entertainment within the stage 4 and 5 centres is dependant on the particular focus of the centre. Social The social aspect relates to the idea of being a communal meeting space. It allows for the social dimensions of participating in a community recreational activity, for seeing and being seen, for meeting and passively enjoying the atmosphere. When Roselands first opened, this was considered an extremely important function of the centre. Early promotions stated that Roselands would be the prime choice for people to meet, avoiding the chaos of the city. Ambient music, such as the grand piano, landscaping and a wide variety of places to eat, supported this pursuit. The Rendezvous Lounge area provided a comfortable place to wait and meet your friends, complete with the services of a hostess who could advise of the attractions of the day. The social element is still important in the Stage 3 centres. For Westfield Parramatta, it has become a significant meeting place for young people. However, as groups of young people are considered threatening by other consumers, the centre has been designed to include a youth precinct. For other consumers, the food hall is a popular space to engender a social experience, as does being part of the promenade (Goldman 2001). In stages 4 and 5 the social aspect continues to be important, but takes place in limited areas, such as coffee shops and restaurants. The following table summarises the five stages of developments and highlights the changes in importance of the key shopping centre concepts. While it is clear that retail is of high importance in all stages, the other elements fluctuate according to the style of centre development. Time period Stage1 Stage2 Stage3 Key character Importance of Key Shopping Centre Concepts Retail High High High Entertainment Low High High Social Low High High Services Low High High

1957 Pedestrian space 1960s Enclosed mall 1996 - Larger, more overt entertainment Stage4 1996 - Specialisation High Varies Mid Mid Stage5 2000- Mixeduse High Varies High Mid convenience Table 1: Summary of key stages in Australian shopping centre developments.

Evaluation of the Five Stage Framework It was useful on a number of levels to examine the changes in shopping centre development through the 5-stage framework. The framework helps document historical changes by providing pivotal characterisation points. This can assist in comparing and contrasting shopping centre developments elsewhere and to identify some of the broader social changes which may have influenced the change. We were able to compare the Australian experience to what has occurred in America. The level of adoption of the specialty centres in Australia is much lower than what has occurred in America. Versions of the specialised centres, such as the fashion factory outlets, the convenience centres, the home lifestyle centres, have emerged in the last decade, but not at the rate of American development. There has been little development of the power centre in Australia beyond the initial two centres developed in 1996. The dearth of growth here may be due to greater legislative control and the impact new developments would have on existing nearby retail areas. As the power centres aim to draw customers from a wide regional base, the opposition to such centres would be significant. While generally following the American model, the centres have been shaped with an Australian flavour. Australian supermarkets remain key anchors in the regional centres, maintaining the concept of one-stop shopping. American supermarkets generally do not appear in centres other than the neighbourhood centres, and the British and European supermarkets are usually in stand-alone hypermarkets. Many of the large British and American centres draw most of there custom from a wide regional area while grocery shopping is done closer to their homes. In Australia, regional centres are still situated within a strong community population base. While drawing much of there custom from a wide area, there is still a major local customer base, which use the centre as their primary commercial base. This trend may change as shopping centres become more specialised. Australian shopping centre management companies such as Westfield are significant players in the American shopping centre industry, and are leading the way in some areas such as shopping centre branding. Lend Lease has recently launched into the Asian market and is exporting Australian knowledge and management experience. The five-stage framework has also assisted in dispelling myths about new retail formats. For example, Stage 3 centres are characterised by their entertainment focus. However, we can see from the Roselands experience that entertainment has been a critical factor for the past 30 years. . The difference is in the form and structure of the entertainment provided. Furthermore, the framework also helps to identify new forms of the shopping centre concept, such as the newly emerging Stage 5 centres. We are now able to track changes in the shopping centre concept and trace the influence of any changes in the economic and social environment.

Conclusions The five-stage framework analysis presented here highlights four key issues. Firstly, there has been a shift towards larger and to more specialised retail shopping centre formats. Secondly, the social, entertainment and service elements of the shopping centre concept have remained important over the past 30 years. Thirdly, there has been a gradual change in the codification of these elements. By this we mean that the elements continue to be offered but have been shaped and tenanted into a more commercial and badged package and allocated to certain precincts. Fourthly, the Australian experience, while generally mirroring that of the

US, differs in the retention of the supermarket as a key anchor, and in its slower adoption of more specialised centres, such as power centres and factory outlet centres. Although we have developed the five stage historic framework to enable us to comment on the above four key issues, the framework is robust enough to enable other issues to be discussed and evaluated. For example, we could use the framework to discuss changes in the marketing and promotion practices of shopping centres over time. This could encompass issues such as changes in the way shopping centres have marketed themselves in face of increased competition, and the role the key concepts have had in differentiating the centres. We could also try to understand the role of changing consumer tastes in explaining the evolution of the shopping centre concept. Lastly, but without exhausting the list, the framework could be used to understand the changing dynamics of internal and external relationships within the centres, particularly management-tenant relationships.

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