RETAIL SATURATION: INEVITABLE OR IRRELEVANT?

Abstract

Retail saturation has become a prevalent theme of discussions within the retailing and shopping center development sectors. The concept also has recently begun to attract the attention of the academic community. This paper begins by considering the definition of retail saturation and some of the problematic issues in determining if the condition exists. Causes of the rapid growth in retail supply are discussed, including the availability of capital, the competitiveness of key players, and the dynamic nature of the retailing and shopping center development sectors. Indicators of saturation are reviewed and a number of escape mechanisms are noted. The paper concludes by considering avenues for further research, the impact of Internet retailing, public policy issues related to saturation, and the appropriateness of the saturation concept for describing the retail environment. [Key words: overstoring, retail demand, retail supply, saturation.]

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