Power positions in out-of-town retail development decisions Ingrid Janssen

Outline presentation Characteristics of the Dutch retail market Introduction to the problem Research question Research approach Analysis of two initiatives for large scale retail developments Analysis of power positions Conclusions and recommendations / name of department 11-1-2019

Characteristics Dutch retail market Mature (focus on extension and redevelopment) High average square meters per inhabitant Stronly regulated planning policy Little room for innovation and expansion Strong position inner cities / name of department 11-1-2019

The Netherlands: a mature retail market / name of department Source: Jones Lang Lasalle, 2008 11-1-2019

Introduction Dynamics in retail sector ask for new retail locations. Introduction of new national policy document on spatial planning: “Nota Ruimte”. From plan-led to market-led (or development planning) Local governments are responsible, but inexperienced with retail developments. Professional and dominant retail development industry. Power positions within negotiations on a local policy level have become increasingly more important. / name of department 11-1-2019

Research question Does private parties dominate local retail planning decisions since the responsibility is disputed to local governments? / name of department 11-1-2019

Research approach Research framework: “Decision making in networks” to reconstruct the decision-making process Case study: Two initiatives for a new out-of-town shopping mall “Classification of power” to identify relations within the network / name of department 11-1-2019

Decision making in rounds Decision making as a clew of rows of decisions taken by several actors row of decisions taken by actor A row of decisions taken by actor B taken by actor C taken by actor D Source: Teisman, 2000, adjusted by the author / name of department 11-1-2019

A classification of power Form of power Aspects of power 1. No power (co-operation) 2. Formal power authority 3. Power by resources availability of resources: capital land knowledge etc. 4. Social power impatience outside options asymmetric information future obligations / name of department 11-1-2019

Two initiatives for Mega Malls / name of department 11-1-2019

Characteristics initiatives NL-C Geldermalsen Started in 2002 Periphery of small city (26.000 inh.) 130.000 sq.m (100.000 sq. m retail) Integration retail and leisure 8 to 11,5 million visitors each year Tilburg Mall Started in 2007 Former military site located at the border of a medium sized city (200.000 inh.) 80.000 to 100.000 sq. m. retail Integration retail and leisure 5,2 to 7,8 million visitors each year / name of department 11-1-2019

Analysis of the decision making process Initiative developer Decision result: feasible new retail concept / name of department 11-1-2019

Analysis of the decision making process Decision round 1 developer representatives local government Decision result: - Support from local executives - Location selection / name of department 11-1-2019

Analysis of the decision making process Decision round 2 NL-C Geldermalsen Tilburg Mall Municipal Executive Feedback group: Mayor and alderman MKB Nederland chamber of commerce others developer Municipal Executive City Council developer City Council advisors neighboring cities advisors (I) advisors (II) Decision result: local political support / name of department 11-1-2019

Analysis of the decision making process Decision round 3a Decision round 3b NL-C Geldermalsen Tilburg Mall local government developer local government interest groups developer citizens province neighboring cities advisors (III) interest groups Decision result: regional political support Decision result: social support / name of department 11-1-2019

Analysis of power positions Situations of power change during the decision- making process. 1st decision round: co-operation The more actors, the more diverging interests, the more conflicts, the more forms of power manifest. The power position of the developer decreases during the decision-making process. In all decision rounds formal power is the most apparent form of power. Aspects of power that also appeared: Power by resources Asymmetric information Outside options / name of department 11-1-2019

Conclusions Although developers are the initiators, the formal decision-making process weakens their power position. Although the planning philosophy has changed, retail planning decisions are still a formal, political decision process. For the introduction of new retail concepts, the Dutch retail market is still a difficult market. Power positions during informal processes, like lobbying, are just as important as those in formal decision making processes. The role of retailers in the decision-making process is equivocal. Compensatory planning as a tool to get social support. Delegation of planning authority leads to some form of community planning. / name of department 11-1-2019

Further research Additional research is needed to uncover influence structures during decision making in urban planning and real estate development. Principles from game-theory and choice modelling can be applied to set up an experiment to investigate desicion behavior of real estate agents. / name of department 11-1-2019