Inner city retail development - the importance of psychological, social and community dividends

Abstract

Problem/Purpose. A process of revitalisation, adaptive reuse and gentrification of historic industrial buildings was underway in the south eastern corner of the central business district of Christchurch prior to the devastating earthquakes of 2010 and 2011. This was seen as an exemplar of a successful approach to rejuvenation of the central city by many residents of Christchurch and the City Council was keen to build on this success. Design/Methodology/Approach. A comprehensive research case study has been undertaken which examines the establishment and progress of the commercial tenants within these buildings both before and after the earthquakes. Findings. The retail and hospitality uses that were a key to the success of this area pre-earthquake could be characterised as small, owner operated, quirky, bohemian, chaotic and relatively low rent. This is a stark contrast to the types of businesses that typically occupy suburban malls and the wider CBD. An interesting outcome of comprehensive interviews with these commercial tenants is that factors other than profits and economic success were pivotal in how they operated and what they perceived was attractive about this CBD location. Research limitations/Implications. These findings are fixed in time and place to a specific and relatively small location, which may be unique. Further research in different locations will be necessary to determine if the phenomenon identified is of wider applicability. Takeaway for practice. Important success factors for many tenants can be characterised as social returns or community dividends flowing from their investment in the business. These factors can translate into an attraction for shoppers of a type that reject the impersonal and homogenised experience of mall shopping. This may have important implications for inner city revitalisation as it contrasts with the traditional focus of property developers and local authorities on physical aspects and tenant profitability as a measure of success in how to compete successfully with suburban malls. Social implications. A better understanding of what makes for successful inner city revitalisation and also a consideration of alternative definitions of success in business, may lead to a wider variety of CBD retail experiences and therefore social interaction and development.