POWER NODES:

DOWNTOWNS IN THE PERIPHERY

Jim Simmons,Centre for the Study of Commercial Activity,

Ryerson University, Toronto Canada.

OUTLINE:

1.Three Stages of Commercial Structure

2.A Focus on Power Retail

3.Power Retail in Context

4.Power Nodes

5.The Implications and Future of Power Nodes

THREE STAGES OF COMMERCIAL STRUCTURE

a) Traditional Retail

Small family-owned shops

Transit-oriented

Highly competitive, but inefficient

Traditional Retail Photo

TRADITIONAL RETAIL STREET

b) Shopping Centres

Large shops, retail chains

Single ownership, anchor store

Based on spatial and sectoral monopolies

MAP OF SHOPPING CENTRE

Department Store Anchor

c) Power Retail

Huge stores, big box chains

Automobile access

Compete using price, selection and

brand marketing

 

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.

Power Centre Photo

POWER NODE PHOTO

HighwayInterchange

Home Depot

Supermarket

RioCan BurlOakPower Centre

Parking Lot

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 bornoutside Canada 45.7 per cent (2006)

HOW BIG ARE THE POWER NODES? 

The Biggest Nodes in the Greater Toronto Area 

Floor Stores Big Power Shopping Growth Rate,Area* Boxes Centres Centres 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

Type of Facility

Number Floor Area (1000s)

Share of Floor Area

Floor Area/ Store

Floor Area/ Node

Traditional Retail Strips

224 38,090 23.2% 1,586 170,000

Shopping Centres

581 88,132 53.7 4,015 151,600

Power Retail 95 30,592 18.6 12,752 322,000

TOTAL 900 164,284 100.0 3,392 174,200

Power Nodes 33 35,480 21.6 8,767 1,075,200

COMMERCIAL FACILITIES: GTA, 2010

Source: CSCA fieldwork

WHO SHOPS WHERE?(Above Average Proportions)

 

Traditional Retail Apartment DwellersSmall FamiliesSeniors/ RetireesTransit Users

Shopping Centres WomenYoung PeoplePeople not WorkingCustomers who Travel from Home

as Passengers

Power Retail Home OwnersMulti-Car HouseholdsMen, Middle-agedBlue Collar OccupationsCustomers who Travel from

other Retail, as Drivers

 Source: Centre for the Study of Commercial Activity,using the Transportation for Tomorrow data.

THE FUTURE OF POWER NODES

The Good:Efficient (Inexpensive)Popular with young familiesAttracts retail investment

The Bad:Low DensityAutomobile-orientedWeakens existing town centresUnattractive to seniors, transit usersWeak Internal structure Poor links with community

Vulnerable?Environmental policiesHigher energy costsLand use restrictionsHigher land costsDemographic changes (aging, immigration)On-line Competition