Suitable Location Selection Optimization for Shopping Centres and Geographical Information System (GIS)

China-USA Business Review, ISSN 1537-1514 August 2011, Vol. 10, No. 8, 711-718 Suitable Location Selection Optimization for Shopping Centres and Geog...
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China-USA Business Review, ISSN 1537-1514 August 2011, Vol. 10, No. 8, 711-718

Suitable Location Selection Optimization for Shopping Centres and Geographical Information System (GIS) Ceren Erdin Gündogdu Yildiz Technical University, Istanbul, Turkey It is seen that current organizations try to make use of geographical information system (GIS) based on decision support systems at many stages of strategic decision-making. Geographical information systems that are known as collection, arrangement, inquiry and analysis of spatial data in computer-aided systems are known as the systems producing solutions in almost every field today. The most important strategic decision in the establishment phase of an enterprise is the selection of its location. Company location selection problem is defined as a combinatorial optimization problem in operational research. Different approaches can be created in the solution of the problem with the possibilities provided by Geographical Information Systems. The objective of this study was to perform the suitable location selection for shopping centers in Istanbul and its surroundings, which is the city where the largest and biggest numbers of shopping centers are located. In the study, evaluation of data concerning the suitable location selection was performed in Geographical information system ArcInfo-GIS environment. Keywords: GIS, spatial analysis, database, decision analysis, decision support systems

Introduction It is observed that urban projects evolve according to their location properties and to periodical investment types. This makes some locations the favorites of capital owners because of their location properties such as a central position in the city or ease of transport with automobile (Yırtıcı, 2005; Özaydın & Özgür, 2009; Terzi & Dökmeci, 2006). When thought of as an urban project, shopping malls reflect a place where consumption is highlighted. In the consumer society of our era, not only basic needs are consumed but even the scope of art is a consumer product. Baudrillard, in his work Consumer Society (translated to Turkish with the title Tüketim Toplumu), expresses that a synthesis of passing idle time and consumption is taking place in shopping malls that he calls drugstores (Baudrillard, 1997).

The Current Status of Shopping Malls in Turkey The first shopping mall in Turkey has opened its doors in 1988. By the first half of 2009, 217 malls in 37 cities were offering 6 million m2 of rentable space (see Figure 1) (AVMYOD, 2009). While according to data from 2009, total rentable area per 1,000 persons all around Turkey was 67 m2, and it is indicated that with 44 projects scheduled to complete in 2010, this area will rise to 118 m2. Ceren Erdin Gündogdu, Ph.D., Assistant Professor, Department of Business Administration, Yildiz Technical University. Correspondence concerning this article should be addressed to Ceren Erdin Gündogdu, Yildiz Technical University, Barbaros Bulvari, IIBF, H-Blok, 34349 Yildiz-Besiktas, Istanbul/Turkey. E-mail: [email protected].

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Figure 1. Development of shopping malls in Turkey (Based on rentable space) (Last updated on 17, March, 2010).

The Current Status of Shopping Malls in Istanbul Istanbul, the most populous and economically most significant city in Turkey, is the 34th most economically developed city in the world. From a population perspective, it has the largest population in Europe (12,573,836). When the definitions and standards set by the International Council of Shopping Centers (ICSC) European Organization for mall types are observed, the malls in Istanbul can be divided in two groups (ICSC-AMPD, 2006). Istanbul, as the city where 24% of all household expenses are made, is a metropolis where economical activities are concentrated on (TÜİK, 2010). The geographical distribution (location) of malls in Istanbul is concentrated on a specific workflow. The most important factor in the distribution of malls is the road network (transportation) because the biggest problem in Istanbul is transportation. It is observed that the geographical distribution of malls in Istanbul is tied with the road network, but only public areas that are not connected to the urban texture are assigned for this purpose. It is observed that malls in Istanbul are concentrated, almost oversaturated in areas with dense population or high income. On the other hand, preference research conducted about shopping malls shows that consumer demands are raising every day, and new malls are highly on demand. To satisfy these demands, they need to distribute the load on the city center and the workflow towards the periphery of the city. To fulfill this need rationally, the qualities of the target population and their consumer behaviour must be analyzed. For example, it is determined that the preferred mall distance of the consumers is around 1,000-2,000 m and they prefer 500-1,000 m to walk in the results of a research outsourced to SONAR research and marketing institution by the association of shopping malls and retailers. It is also determined that people who like to spend time in the malls defined as “living space” of consumers the whole day are concentrated between 25-35 years of age, and that they are mostly high school graduates from other researches and polls. Furthermore, it is established that 1/3 of visitors solve the transportation problem by walking, 1/3 with private vehicles, and 1/3 using public transportation. On the other hand, almost half the consumers (48%) stated that they prefer the malls to be opened in downtown (SONAR, 2003; Akad, Taşkın, & Özdemir, 2006; Bayar, 2005). At this point, it is inevitable that very important decisions and planning for Istanbul’s future will be made. In the selection of locations for new malls, consumer behaviour, qualities of the target population, demographical structure, economical status, geographical location and competition issues will be naturally considered.

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Material and Method There are 39 districts within Istanbul’s borders. When the distribution of commercial zones is examined, it is observed that they are directly related to the economical power of the district population. As a result of the same parameter, Istanbul’s work flow is traversing said district zones. In the distribution of shopping malls, they are also concentrated on the districts with high commercial density. Istanbul is a metropolis that has acquired its place within cities of the world as a city of culture. Because of this, such decisions made by administrations and planners should be based on very sensitive researches and urban data. It is planned to evaluate Istanbul from all its angles in a GIS environment to create a foundation for rational decisions that will be made taking into account the social responsibilities of city administrators and governments and the commercial expectations of investors. First of all, the number of existing malls and their distribution (location) has been determined based on district borders, and the geographical coordinates of every mall and district center are determined and the distance between district centers and malls are calculated (see Figures 2-3). To determine the locations of shopping malls in relation to the existing urban transport network 69 malls have been placed upon a map of transportation network based on geographical coordinates (see Figure 4).

Figure 2. Distribution of malls based on district borders.

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Figure 3. Distances based on geographical coordinates.

Figure 4. Distribution of malls based on urban transport network.

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The main concern in the choice of location for new shopping malls is the preservation of natural reserves. For this reason, considerations have been made using data from the IKONOS satellite to find out relations between natural reserves and residential areas and the distribution (location) of shopping malls in relation to natural reserves (see Figure 5).

Figure 5. Natural reserves in Istanbul and shopping malls.

To show the relation between the density of residential areas and the distribution of shopping malls, the distribution inside Istanbul borders has been determined (see Figure 6).

Figure 6. Density of residential areas and distribution of shopping malls.

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Transportation is the biggest issue in Istanbul. To solve this problem, every political administration tries to create different solutions and bring them to life. In the largest scope, in case the road network that will be brought to life by increasing the number of Bosphorus bridges happens, new areas for shopping malls can be created, but northern forests of the city may be destroyed by this approach (see Figure 7).

Figure 7. Project designed for urban transportation and shopping malls.

Conclusion The primary aim of evaluation is to define important parameters of location choice by using the results of scientific research and polls about qualities of the target population and consumer behaviour. The necessary data of different parameters based on consumer behaviour of Istanbul’s population and their outlook on shopping malls, demographical properties, economical status, geographical status and competition analysis have been determined. These are: (1) district population; (2) district area; (3) population density; (4) gross national product; (5) shopping potential; (6) land value; (7) road network (transportation); (8) rents; (9) natural values; (10) number of shopping malls; (11) competition status. From the 39 districts of Istanbul, districts except the Islands and Beyoğlu have not been taken into account in the evaluations that have been made using ESRI software, topology creation using ARCGIS software group’s tools Arc Catalog, Arc Map, Arc Toolbox, and software needed for data transformations, coordinate system transformations, spatial analysis has been used. Vectorial data have been transformed to Raster data before spatial analysis and the transformation between different coordinate systems have been made. District areas and other data about districts (district population, gross national product, land value, etc.) have been defined as self-qualities. The density map of existing shopping malls and Euclidian distances between shopping malls has been obtained after spatial and qualitative analyses made in this stage (see Figure 8). The district borders have been overlaid in the shopping malls density map and densities within district borders have been determined (see Figure 9).

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Figure 8. Density map of existing shopping malls.

Figure 9. Density map based on district borders.

For every attribute data, the effect coefficient has been determined and a function has been created considering every parameter’s effect on choice of location for shopping malls (+ or –) and as a result of evaluations, 20 most convenient districts have been determined for new shopping malls in Istanbul’s borders (from dark to light, see Figure 10). The natural reserves in the northern side of Istanbul have been excluded.

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Figure 10. Most important areas for new shopping malls within Istanbul’s borders.

References Akad, Ö., Taşkın, Ç., & Özdemir, A. (2006). Buying behaviour of international shopping center consumers—An application in Bursa. Anadolu University Journal of Social Sciences, 6(2), 13-30 (in Turkish). AVMYOD. (2009). Development of shopping centers in Turkey. Retrieved April 4, 2010, from http://www.ayd.org.tr./TR/Databank (in Turkish). Baudrillard, J. (2010). Consumer society. İstanbul: Ayrıntı Press. Bayar, R. (2005). Location choice for shopping mall centers using GIS: Case study Ankara. Journal of Geographical Sciences, 3(2), 19-38. Church, R. L., & Murray, A. T. (2009). Business site selection, location analysis and GIS. Hoboken, New Jersey: John Wiley & Sons Inc.. ESRI. (1999). ARCGIS, arc catalog, arc map, arc toolbox user’s manual. Redlands, A.B.D.: Environmental Systems Research Institute Inc.. ICSC-AMPD. (2006). ICSC shopping center standards. Arastaavm, 49, 48-51 (in Turkish). Longley, P. A., & Batty, M. (1996). Spatial analysis: Modelling in a GIS environment. New York: John Wiley & Sons Inc.. Malczewski, J. (1999). GIS and multicriteria decision analysis. New York: John Wiley & Sons, Inc.. Özaydın, G., & Özgür, E. F. (2009). A revaluation on shopping malls as grand scale urban projects in case of Istanbul. Journal of Architecture, 347, 55-69 (in Turkish). SONAR. (2009). Shopping centers preference survey report. Retrieved March 16, 2010, from http://www.ampd.org/members (in Turkish). Terzi, F., Mutlu, H., & Dokmeci, V. (2006). Retail potential of districts of Istanbul. Journal of Retail and Leisure Property, 5(4), 314-325. TÜİK. (2010). 2006-2007-2008 consumption expenditure statistics. Prime Ministry republic of Turkey Turkish Statistical Institute, 26. Yırtıcı, H. (2005). The spatial organization of contemporary capitalism. Istanbul: Bilgi University Press (in Turkish).

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