1.3.5 The Service Economy (Tertiary) and its Social and Economic Impacts Flashcards
What is tertiarisation?
When the tertiary sector comprises the biggest element of the economy
How has employment in services changed?
1992 - 68%
2001 - 76%
2011 - 80%
2018 - 83% (71% of men and 92% of women)
- Tertiary is increasing
- More women in tertiary as men traditionally work in primary/secondary industries
How has GDP from tertiary sectors changed?
1970 - 55%
2001 - 73%
2024 - 79%
What did the growth of the manufacturing industry lead to?
- Rise of the banking and insurance industry
- Industrialists needed to store and protect their money
How has rising affluence promoted the growth of the service sector?
- People want to invest/bank their wealth, insure property/possessions, purchase goods and have improved leisure time
- More disposable income has led to the growth of leisure activities
How has building technology promoted the growth of the service sector?
- Steel framed buildings have enabled sky scrapers
- Enables business to cluster together even more closely
How has communication technology promoted the growth of the service sector?
- Online booking and websites have made hotels and AirBNBs more accessible to tourism
- More properties in city centres are now available for tourism (previously would’ve been too small to advertise properly)
- Internet means banking was able to centralise into a few global hubs because proximity to customer has become irrelevant due to instant communication
How has transport technology promoted the growth of the service sector?
- Trains led to the growth of seaside towns (e.g. Bristol, Southend)
- Since the 1950/60s, air travel has been cheaper, leading to mass tourism
- More underground and commuter trains
How does the share of jobs in the city centre vary?
- 51% of financial services
- 43% of KIBS jobs
- 35% of restaurants
- 18% of government workers
How is the CBD accessible?
- Public transport delivers people to the CBD very efficiently
- For those on low incomes, it is the most accessible location
- Some low paid workers cannot afford a car so it is easier to find staff in the CBD
What are the benefits of agglomeration in the city centre?
- Shared labour pools
- Most accessible so greatest pool of potential workers
- Knowledge spillover
Why is retail declining in city centres?
- Loss of flagship stores
- Out of town shopping centres
- More online shopping
- Inverse multiplier effect (lower foot fall leads to fewer shops)
How has the type of business changed in UK city centres?
- Personal services (e.g. hair and beauty), cafe chains and restaurant have increased as they can’t be done online
- Banks and fashion can be done online so they have declined
- 1/8 shops in the UK lay vacant in 2023
- As more retailing moves out of town/online, fewer people will shop in the town
What are the statistics for the change in number of stores between 2013 and 2017 in the UK?
Barbers +2066
Beauty salons +1599
Cafes and tearooms +1384
Banks -2405
Women’s clothes outlets -1588
Travel agents -1229
How do showrooms work?
Consumer visit showrooms to look at products but then buy them online and get them delivered to their door
How is Clark’s using its physical and online presence to benefit the overall business?
- Stocks a variety of children’s and adult’s shoes
- Offers a free measuring service for children
- Hold huge ranges of shoes in every size in sufficient quantity, unlike smaller shoe shops
- If a size isn’t available, shopper can order it online and get it delivered
- No longer a loss of sale or inconvenient return to the shop for the customer if there is a shortage of stock
What are the advantages of physical shopping?
- More pleasant and social
- Can make unexpected, impulse purchases
- Shopping as leisure (coffee bars)
- Individual service from approachable retailers
- Direct possession and use
- Feeling of reliability because of ability to make comparisons
- Perceived as being more versatile because products can be compared
What are the disadvantages of physical shopping?
- Opening hours are often limited
- Getting to and from shops, congestion and cost
- Parking and transport costs high
- Less easy to compare prices in different shops
- Pushy sales people
- More expensive due to the cost of space to store and display goods
- Lack of background information on products and services, which the internet can provide
How does the closure of a flagship store impact the high street
- The flagship store is the biggest and most central store
- Foot fall is reduced when a flagship store closes
- People that visited the high street mainly to visit the flagship store may not bother anymore
- Neighbouring shops will not have as many customers
What is the flagship store on Walsall High Street?
- M&S
- Its closure has meant Clinton’s will sell fewer impulse purchases and Costa will sell less coffee
What are the causes of the decline of the Dudley CBD?
- Merry Hill Westfield shopping centre was built out of town
What are the social impacts of the decline of the Dudley CBD?
- Public transport brings people to the town centre but people need a private car to access the Merry Hill Westfield
- People without cars became deprived of access to most shops
What are the economic impacts of the decline of the Dudley CBD?
- 32% of shops are vacant (100 shops), which is the worst in the country
- Budget shops can only pay minimum wage