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

2. 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

3. 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

4. The Netherlands: a mature retail market
/ name of department
Source: Jones Lang Lasalle, 2008

5. 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

6. Research question
Does private parties dominate local retail planning decisions since the responsibility is disputed to local governments?
/ name of department

7. 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

8. 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

9. 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

10. Two initiatives for Mega Malls
/ name of department

11. Characteristics initiatives
NL-C Geldermalsen
Started in 2002
Periphery of small city ( inh.)
sq.m ( 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 ( inh.)
to sq. m. retail
Integration retail and leisure
5,2 to 7,8 million visitors each year
/ name of department

12. Analysis of the decision making process
Initiative
developer
Decision result: feasible new retail concept
/ name of department

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

14. 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

15. 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

16. 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

17. 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

18. 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