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Cities facilitate:
- Money and Goods
- Act as a device for maximising utility
- Cities are built primarily to bring people and firms physically as close together as possible: to enhance standard of livings
- The more accessible a location, the greater the demand for the locations and hence the price of the land, and hence the density of settlement
- Cities are a wider manifestation of the same thing: the economies of assembly, scale, and agglomeration
- Urbanisation: The process by which the proportion of a country's population living in cities rises.
- Cities are invented to make us richer: increase the standard of living
What are the 5 main demand size pressures?
1. Changes in residential location
2. Changing consumer attitudes and expectations
3. Growth in female employment
4. Change in levels of consumption
5. Increased mobility
The cycle/process of accessability
- Accessibility widens markets
- Larger markets means greater production
- Larger volumes allows economies of scale and scope
- Economies of scale mean greater division of labour
- Division of labour allows specialisation
- Specialisation raises productivity (output per hour)
- Higher productivity leads to higher wages
- Higher wages means increased standard of living
- Therefore, accessibility results in affluence
What are the 3 supply side influences?
1. Structural change: long-term shift in the fundamental structure of an economy, which is often linked to growth and economic development.
2. New Technology
3. Consumer 'control'
What does it mean by changes in residential location when talking about demand size pressures?
Suburbanisation of the population
rich, young and mobile people moving the the periphery of urban areas. Therefore there is more demand for retail centres in new areas. Poor, old and less mobile, are the worst off as they are left with less retail and a worse quality.
What does it mean by changing consumer attitudes and expectations when talking about demand size pressures?
Increased demand for comfort and convenience
What does it mean by growth in female employment, when talking about demand size pressures?
Increase purchasing power - households disposable income increases
Time constraints - increase in bulk buying and a decrease in shopping trips.
What does it mean by the change in levels of consumption, when talking about demand size pressures?
Increased consumption due to population growth and an increased purchasing power in society after WWII.
Opposite effect was the economic downturn which lead to larger companies offering lower prices and putting small businesses out of business.
What does it mean by increased mobility, when talking about demand size pressures?
Growth of car ownership, public transport etc.
What does it mean by structural change, when talking about supply side influences?
Expansion of multiple retailers share of turnover largely at expense of the independent shop keepers. For example: Supermarkets pursuit of economies of scale has promoted development of larger units.
How does new technology influence urban retailing as a supply side influence?
New technology such as bar coding, tills, cash registers and receipts improves efficiency, worker control ,data documentation, customer recording etc.
What are examples of consumer control?
limited exits in mall, channelling customers, demonstration points.
Four factors of the anatomy of a shopping mall:
1. Large anchor tenants e.g. department stores or supermarkets
2. Minimized amount of exit points
3. Mall street often curved or zig zagged
4. Clusters of similar retail activities e.g. food courts

Also private ownership so they can choose tenants and remove undesirables.
Evolution of Town-Centre shopping schemes in the UK
Post-war reconstruction
new town precincts
revitalized district centres
town centre accretions
regional shopping centres
large comprehensive developments
Three types of market competition?
1. Competition to attract consumers has lead to 'shopper-tainment', eater-tainment, and edu-tainment
2. Combination of 'leisure' and 'shopping' esp. possible in large purpose built shopping complexes
3. 'landscapes of consumption', the 'malling of America"
Division of labour in the mall:
Increase labour pool of trained retail workers
Knowledge spillover between shops within mall
Privately owned enterprise - specialization in management and business side of running the mall allows for better control, co-operation and efficiency. Compared with a street with different owners and management throughout the retail centre.
Economies of scale in a shopping mall:
Shared resources: car parking, infrastructure and governance
Shared customers: Customers only intending to buy from one shop may end up buying from other shops they had intended on going to.
Privately owned: private rules allows for the enterprise to have overall control.
The combination of these factors leads to the efficiency, specialization and running of a mall to have lower costs of production and therefore creating economies of scale.
Economies of scale and the street :
Works at a smaller rate than in a mall which, is one reason there is an increasing number of malls. Streets still share labour pool, customers and resources.
Streets usually will have a reputation associated with them - having boutiques and upper class shops.
Economies of Scale
A set of conditions in which average costs of a firm decrease as the scale of production increases.
Diseconomies of scale
The situation where economies of scale no longer work for a firm. Rather than experiencing continued decreasing cost per increase in output, firms see an increase in marginal cost when output is increased.
What is the impact of urban retailing on an economy?
USA retailing commands 20% of workforce.
Canada spends 1/3 of its disposable income on retailing.
Growth of North America shopping malls
1950s - Mall built after housing, when market was known
1960s - Simultaneous building of malls and housing
1970s - mall built first
1980s - arge industrialisation style shop agglomerations. Shopping mall tourist attraction.
1990s - Renovations rather than new construction
The Mall: USA
First covered mall in 1956.
1960-80 30,000 malls were constructed

Regulated by surveillance systems to exclude undesirables. Specialty centres, downtown mega structures and festival market places
The Street:
May become a destination and a throughfare.
Some streets specialized shopping venues
Home Shopping:
Began with mail order catalogues
TV and internet growing importance but non place shopping is unlikely to replace more conventional landscapes of consumption.
Origin and growth of cities
- From a nomadic, agricultural revolution 10,000 BC of hunter gatherers, clans and kinships to the establishment of farm hamlets and villages and towns with divisions of labours, specialisation and new forms of social control
Pre-conditions of urban growth
- Agriculture - surplus. (Intensification). Hydraulic/co-operation /concentration. Labour specialisation (+ writing, religion, governance).
- Trade - short and long distance
- Social stratification and control
> Mesopotamia 3500BC
Peter Taylor:
- Emphasises 'connectedness',
every city is a 'mass of connected humanity
- Draws on Metcalf's law: "the value of a network is proportional to the square of the number of connected users in the system"
- The law has often been illustrated using the example of fax machines: a single fax machine is useless, but the value of every fax machine increases with the total number of fax machines in the network, because the total number of people with whom each user may send and receive documents increases
From feudalism to capitalism:
- Price = materials + labour to Price = materials + wage + surplus, capital reinvested to generate additional capital
- Merchants made the town: Decline of feudalism - rise of merchant class, deregulation - freedom esp. within selected cities (granted). Guilds, charters (boroughs) Hence city-states: Goal - expansion, profit. Central market place: Influx of rural labour: Infrastructure for increased division of labour to allow trace
Post-industrial urbanism
- 1956 when service employment > manufacturing.
- Shift in power from merchants and capitalists to professionals and technological workers
- Shift from production to R&D
- Technological innovation key to growth
- Advanced information technology and 'intellectual technology'
Social implications of the shift:
- Post-Fordest (deindustrialisation, tertiarisation)
- Greater integration into the global economy
- Restructuring of the urban form
- Increasing income inequality
Types of economies:
1. Internal economies (of scale). Firm in industry A
2. Localisation economies. Several firms in industry A located together (sharing, matching, learning)
3. Urbanisation economies. Several firms from different industries, A, B...locate together in same urban area
2 + 3 are agglomeration economies (or external scale
economies - watch terminology)
> Knowledge spillovers
> Lower logistic costs due to proximity
> Sharing infrastructure
> Sharing governance
> Sharing labour
Economies of agglomeration:
- The benefits that firms obtain when locating near each other
- Several firms from different industries A, B... locate together in the same urban area
- The more related firms that are clustered together, the lower the cost of production (firms have competing multiple suppliers, greater specialization and division of labour that results the greater the market that the firm can sell into).
Division of labour:
- Adam Smith: "the division of labour is a function of the size of the market", hence the division of labour is limited by the size of the market
- Division of labour enables specialisation, which is linked to productivity (higher output per worker)
- Therefore, two major drivers for locating in (bigger) cities: economies of scale and economies of agglomeration
- U shape cost curves depict the incentives for firms to grow in size in order to exploit economies of scale
> Between 2011 and 2050, the world population is expected to increase by 2.3 billion, passing from 7.0 billion to 9.3 billion, >At the same time, the population living in urban areas is projected to gain 2.6 billion, passing from 3.6 billion in 2011 to 6.3 billion in 2050
> Thus, the urban areas of the world are expected to absorb all the population growth expected over the next four decades
> As a result, the world rural population is projected to start decreasing in about a decade and there will likely be 0.3 billion fewer rural inhabitants in 2050 than today
> Most of the population growth expected in urban areas will be concentrated in the cities and towns of the less developed regions
> Asia, in particular, is projected to see its urban population increase by 1.4 billion, Africa by 0.9 billion, and Latin America and the Caribbean by 0.2 billion. Population growth is therefore becoming largely an urban phenomenon concentrated in the developing world.
Mega-city development
- Overall, the world population is expected to be 67 per cent urban in 2050.
- Today's 3.6 billion urban dwellers are distributed unevenly among urban settlements of different size.
- In 2011, 23 urban agglomerations qualified as megacities because they had at least 10 million inhabitants.
- By 2025 there will be 37 megacities. About 13.6 per cent of the urban population of the world will then live in these very large agglomerations - up from 9.9 per cent today.
- The population living in urban agglomerations with a population of between 5 and 10 million inhabitants will also increase significantly - from 283 million in 2011 to 402 million in 2025.
- And the population in urban settlements with a population between 1 and 5 million inhabitants will increase from 776 million to 1.129 billion.
Urban concentration:
- There seems to be a process of urban concentration: Cities with more than 1 million inhabitants will increase their share of the urban population, while cities with less than 1 million inhabitants will have a declining share of the urban population of the world.
- Remember, in 2011, over half of the urban population of the world still lives in urban centres with fewer than half a million inhabitants; by 2025 it will be only 42.3 per cent of the urban population.
- Population growth is becoming largely an urban phenomenon concentrated in the developing world.
Types of urban regions:
- City region: City, surrounded by urban hinterland
- Conurbation: urban fields, numerous city regions with linking urban hinterlands: a coalescence of once separate Urban settlements. New competing centres arise within the city region
- Polynuclear/centric cities
- Megalopolis: Jean Gottman: The urbanised Northeastern seaboard of the USA
- Ecumenopolis - world city. thus a city made of the whole world: represent the idea that in the future urban areas and megalopolises would eventually fuse and there would be a single continuous worldwide city as a progression from the current urbanization and population growth trends.
Cities grow in population from three sources:
1. Natural increase of their own population
2. By net in-migration from the rural areas to the city
3. Net in-migration from overseas
demographic transition model
The national urban system
- The interdependence among towns and cities makes it important to view a country as a system of urban places rather than as a series of independent settlements
- Static and dynamic
Urban systems are characterised by:
- A range of city sizes: metropoli to small towns
- A spatial distribution in which large centres are interspersed with smaller centres
- Both have an interesting regularity: the size distribution of cities
- In most countries the second city is one half the size of the largest city
- In most countries the second city is one half the size of the largest city. Moreover, the 3rd city down is a third the size of the first city, and the fourth city down is 4th (1/4) the size of the first city. And so on.
- This is called the 'rank-size rule' because 'rank' multiplied by population size will be equal to the size of the largest place. E.g. size of second city x 2 = size of first city. And so on.
- There is not only a size order to the urban system but a spatial order as well.
- Consider here the way large centres are surrounded by smaller ones.:
- This regularity lead to a theory called 'central place theory'
Pattern to urban settlements: Christaller's Theory
- Threshold is the minimum market (population or income) needed to bring about the selling of a particular good or service.
- Range is the maximum distance consumers are prepared to travel to acquire goods - at some point the cost or inconvenience will outweigh the need for the good.