GEOG 2LE3 Lecture Notes - Lecture 16: Walmart, Root Mean Square, Escalator
4 Jun 2018
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Lecture 16 - Retail Spaces
Retailing
• is the sale of commodities to the final consumer, not for resale, but for use and consumption by
the purchaser
• iplies a first-hand transaction with the customer at a single point of purchase
• at the end of the supply chain
Central Place Theory & Walter Christaller
-A etral plae is a plae that offers goods ad series for sale. The theor seeks to eplai the
number, size and location of central places.
Two Key Variables:
1. Range: the distance a consumer will travel to purchase a particular good
2. Threshold: the minimum level of business (population or income) required for a retail operation to be
viable
Requirement of Centrality: retailers would locate as close as possible to their customers, while
customers would visit the nearest available center, minimizing transport costs
Central Place Theory
Higher order places:
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- goods have a higher range (larger hinterland)
- goods have a higher threshold (more people)
- offers all the goods ad series of loer order places
Lower order places:
- goods have a lower range (smaller hinterland)
- goods have a smaller threshold (less people)
- widely dispersed
- several lower order places within the hinterland of a higher order place
Central Place Theory assumes 2 things:
• an isotropic plain
• consumers are rational with access to perfect information
Globalization of Retailing
-Most from Europe, and most are food/general merchandise retailers
-Retail expansion has shifted from leading economies (N. America, W. Europe, Japan) to emerging
economies (South and Central America, East Asia, Eastern Europe).
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A (cid:272)e(cid:374)tral pla(cid:272)e is a pla(cid:272)e that o ers goods a(cid:374)d ser(cid:448)i(cid:272)es for sale. The theor(cid:455) seeks to e(cid:454)plai(cid:374) the number, size and location of central places. Two key variables: range: the distance a consumer will travel to purchase a particular good, threshold: the minimum level of business (population or income) required for a retail operation to be viable. Requirement of centrality: retailers would locate as close as possible to their customers, while customers would visit the nearest available center, minimizing transport costs. Higher order places: goods have a higher range (larger hinterland) goods have a higher threshold (more people) O ers all the goods a(cid:374)d ser(cid:448)i(cid:272)es of lo(cid:449)er order places. Lower order places: goods have a lower range (smaller hinterland) goods have a smaller threshold (less people) Widely dispersed several lower order places within the hinterland of a higher order place. Central place theory assumes 2 things: an isotropic plain consumers are rational with access to perfect information.
