The service economy and its social and economic impacts Flashcards
What does the city centre timeline look like?
URBANISATION
- 19thC
AGGLOMERATION
- early 20thC
- 1930s
DECENTRALISATION
- 1940s
- 1950-60s
- 1960-70s
- 1960-80s
- 1970-80s
- 1980s-2000
REURBANISATION
- 1980-90s
- 1990s
- 1990-2000
- 2008-2014
How have out-of-town shopping centres (OTSC) caused the decline of many traditional town centres (TC)?
- increasing car transport (accessibility problem for TC)
- when stores leave TC for accessibility:
- quality and quantity falls
- sales fall
- property rental values plummet
BEGINS SPIRAL OF DECLINE
Why has there been a rise in out-of-town shopping centres (OTSC)?
COUNTER-URBANISATION
- rich people move
- spending power goes from centre to periphery
- since 1960s: number of individual shops has fallen but total floor space and sales have increased
- retailing concentrates into focuses into chains, chains move into OTSC when access, cars, congestion and parking problems arise
Give 3 advantages and 3 disadvantages of out-of-town shopping centres
ADVS:
- easy access and parking
- catalytic effect on other retailing centres which is a stimulus to improve
- greater shopping choices and low prices due to bulk purchasing
DISADVS:
- reliance on cars lead to increased pollution and congestion at peiphery
- decline of town centres
- employment is mostly part-time and female
What has been the recent trade history of the high street?
1990s - independent stores disappear, out-of-town shopping centres rise. doughnut syndrome
2004 - clone towns e.g. Cambridge. Many vacant units and narrow ranges of chain stores
2011 - nearly 1/4 high streets failing. Empty shops trigger downward spiral in 83/365 towns.
Give 2011 decline of the high street facts
- High St. footfall has fallen by 10% in last 3 years (not London)
- nearly 1 in 6 shops are vacant
- 40% Britain’s spend on High St.
- 8,000 supermarkets absorb 97% total grocery sales
Give an example of a High St. (HS) decline downward spiral
- Closure of key store/opening of OTSC (e.g. Debenhams)
- reduced footfall of HS, so fewer shoppers
- neighbouring stores lose customers too
- less investment negatively impacts local env, making it less attractive to shoppers
- loss of community and reduction in access from certain social groups
- further footfall reduction increases probability of more vacancies
- another key store closes…
What are the characteristics of a successful High St.?
- larger office/professional daytime population = higher footfall
- ability to attract higher skilled/better paid jobs in professional/commercial sectors
- higher spending power of daytime working population
e.g. people in Cambridge/York/London have average £364 more to spend every month compared to Newport, Bradford and Wigan - stronger economies and a wider range of amenities
What is an amenity?
Give an example
a desirable or useful feature of a place that makes life more pleasant/comfotable
e.g. leisure centres, OTSC, pubs, cafes, banks, playgrounds
What can be the consequence of closing flagship stores?
SPIRAL OF DECLINE
- boarded up shops
- charity shops
- betting shops
- pop-up establishments
Give two best performing and two worst performing town for High St.
What links are there to the listings?
BEST: Brighton, London
WORST: Barnsley, Wigan
- there is an absence of large cities from the list of worst performing, because the worst performing tend to be in areas more heavily dependent on industrial manu. in the past. Deindustrialisation =job loss = no spending power
- successful places are in the relatively more prosperous south of the UK
What are the reasons for service economy growth?
- technology
- prosperity
- transport and communication
How has technology facilitated the growth of the service economy?
Give examples
Technological inventions enhanced clustering of office buildings in CBDs and city centres
EXAMPLES
1. Steel-framed skyscraper, first in Chicago 1884, enabled vertical development along with the electric lift and escalator
- telephone (1876) enabled quicker communication. The first telegraph cable across the Atlantic (1886) is the forerunner of the globalisation of communications
- transport developments e.g. tramways and underground lines in larger cities enabled the growing labour force to commute to work over greater distances
How has prosperity facilitated the growth of the service sector?
AFLLUENT PEOPLE WANT TO:
- invest and bank their wealth
- insure their property and possessions
- purchase goods and have improved leisure time
- more disposable income = growth of leisure industries including rise of travel agencies
How has transport and communication facilitated the growth of the service sector?
TRANSPORT:
- enables retailing, offices and leisure industries to disperse beyond the city centre
- rail travel = growth of seaside resorts 19thC aided by social developments e.g. mandatory annual holidays
- development of aircraft tech have led to overseas package tourism/long-distance tourism/ecotourism
COMMUNICATIONS:
- alters distribution of service economy
- online booking largely replaces travel agencies
- hotels and conference centres become key functions for business life and tourism in most major cities
What is the benefit of city centre locations for the growth of the service sector?
- agglomeration and proximity
- highly qualified labour pools
- accessibility
Why is agglomeration and proximity a benefit of city centre locations for the service sector?
URBAN AREAS: lots of workers, diversity and choice for employees
‘THE CENTRE’: area for exchanging info and ideas
- traditionally this would be face-to-face contact which is still important today despite rise of online working
Why are highly qualified labour pools a benefit of city centre locations for the service sector?
Give an example
if you can attract skilled service companies, they attract skilled workers
e.g. in Cambridge and London
- the attraction of highly skilled economic activities is explainable to their location/proximity
Why is accessibility a benefit of city centre locations for the service sector?
LOWER INCOME GROUPS:
1. better shopping: more choice and comparison chances
2. transport: out-of-town jobs have fewer public transport connections which is EXPENSIVE
Give three advantages and three disadvantages to physical shopping
ADVS:
1. feeling of reliability and versatility because of the chance of comparison
2. shopping as leisure can be more pleasant and social e.g. coffee bars
3. PHYSICAL: direct possession and use, and individual service from approachable retail
DISADVS:
1. getting to and from shops: congestion, parking cost
2. less easy to compare prices in different shops
3. more expensive for the seller due to the cost of space to display goods
How do city centres vary?
- Strong cities centres have more specialist and premium amenities
- Strong city centres are less reliant on retail than weak city centres
- Strong city centres have fewer high st. vacancies
Why do strong city centres have more specialist and premium amenities?
Give an example
- strong city centre economies attract the most high skilled and high paying employers
- presence of well-paid workers in/around streets creates demand for amenities
- additional source of footfall and spending power
MULTIPLIER EFFECT
e.g. London = 37% city centre specialist amenities
Barnsley = 7%
Why are strong city centres less reliant on retail than weak city centres?
Give an example
- stronger cities are able to match current customer preferences
- shift to online shopping = retail takes up less space on high streets but amenities are less replaceable
- weaker city centres are less resilient/more vulnerable to decline as they have higher percentages of retail
e.g. strong city centres = 46% amenities are food and drink, weak = 32%
strong city centres = 33% retail, weak = 43%
Why do stronger city centres have fewer high street vacancies?
- walk-in amenities e.g. cafes take up more space in a stronger city centre
- online retail means lack of spending power and footfall in weaker city centres which limits ability of walk-in amenities to stay open, but stronger city centres can cope because they have the high skilled workers providing money to spend on the high street, sustaining demand