Shopping Mall and Its Impact in the City Life a Study With

International Conference on Management and Information Systems September 21-22, 2018

ISBN 978-1-943295-12-8 189

Shopping Mall and Its Impact in the City Life a Study With Reference to

Bengaluru City

Princy R

Auxilium College

Kezline Dharshini

Azim Premji University This research paper analyzes the impact of shopping malls on the Bengaluru city. The influence of shopping

mall is measured in the form of different attributes evaluated with respect to belief and actual impact. The

attributes were real estate (rent) and traffic. The attributes were studied through surveys and observation.

Overall, the effect of shopping mall on the city structure are analyzed based on the belief and actual. This

research also tried to trace out the preference of people while renting a house in a city. Statistical tools were

used to analyze and bring out the inferences. The goal of this research is to help people understand how their

choices and attraction towards malls had affected their daily life and their city. Some of the inferences were

quite shocking and amusing. I hope this research paper helps people fathom how malls have changed their city

without them realizing it.

Keywords: Shopping mall, Bengaluru City, Rent, Traffic, Real Estate. People’s Preference

1. Introduction India has witnessed rapid growth in the organized retail sector over the last decade due to increase in population,

pay rise, and increase in standard of living. This resulted in the development of shopping malls. According to

the Global Retail Development Index 2012, India ranks 5th among the top 30 emerging markets for retail.

Shopping malls have provided a unique and amusing shopping experience for the Indian consumers. The

changing consumption pattern, in turn primarily remains driven by higher standard of living, growing middle-

class population, greater proportion of working women, increase in penetration levels of organized retail, etc.

(Credit Analysis and Research Limited, 2012). Mall culture is viewed as a significant change in the life style of

Indians, as shopping is no longer an activity of buying things but also viewed as a status symbol and a one-stop

retail solution. Shopping malls are the most happening places these days where people spend their weekends to

relax and shop. With the changing tastes and preferences of customers, shopping malls extend a global impact

across metros, cities and towns. Tier one cities like Delhi, Mumbai and Chennai and Bengaluru have received

greater economic and social contributions from malls. Spencer Plaza, Chennai, is the first mall to be opened up

in Indian history. Spencer Plaza started its operation in the year 1863.

According to Wikipedia, a shopping mall is one or more buildings forming a complex of shops representing

merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a

parking area—a modern, indoor version of the traditional marketplace

(http://en.wikipedia.org/wiki/Shopping_mall). Shopping malls are usually built in an area of 80,000 to 350,000

sq. ft., and consist of around 200 shops in India, and more than 200 in many parts of the world. With the advent

of players like Future Group, Pantaloons, Lifestyle, Crossword, etc. the organized retail is creating a new image

for itself. The organized retail sector has been expanding at a faster pace since 2002 with the establishment of

many malls even in two-tier cities. India offers an immense market opportunity because of increased income and

changed lifestyle of middle class families. In 2001 there were just three malls in India. The number grew to 343

by 2007. As of May 2013, India had a total of 570 operational malls. As per the data from Bangalore-based

Asipac Consulting, number of malls in 2013 has doubled since 2008 and the number is expected to reach 1,000

by 2020.

The shopping malls in Bengaluru city are the sum of the effects of the quality of life, lifestyle pattern,

standard of living, the work of city transportation system and architectural and urban perception of the city. The

malls in the city attract with entertainment, food court, multi-brand portfolio, convenience, infrastructure, safety,

parking and eliteness.

Most of us would have heard this statement when you go looking for houses to rent – ‘the rent in this area is

little high because nearby you have big mall’. So, does it really affect the rent? Do malls affect the area’s

traffic? Therefore, the question on focus - How malls affect the city and its people?

2. Review of Literature A review of literature revealed why people are attracted to malls and how this affects the city on which they

depend for their living.


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Prathamesh Muzumdar (2014) this study deals with the twin cities of Bloomington-Normal (henceforth

referred to as ‘city’) located in the Mclean county in the central Illinois region. Normal is a small town with a

population of 70,000. The major employer of the city is State Farm Insurance; the city is densely populated with

middle-class and lower upper-class income segments. The shopping malls have played a major role in the

growth of the city. The first shopping mall was started in the year 1982, and by 2011, it had 8 shopping malls.

The main reason for the increase in the number of the shopping malls was the increase in the population of the

city which was the result of the change in the environment of the city which took place due to the growth of

certain factors. As a result, many issues evolved addressing the factors of environmental changes, changes in

architectural and urban perception, changes in communication and transportation and changes in the economic

aspect of necessity of a city. A city with limited population but with multiple shopping malls posed a question to

the town planners to think about.

Rajagopal (1999) this study pointed out that the ambience of shopping malls, assortment of stores, sales

promotions and comparative economic gains in malls attract higher customer traffic.

Srivastava (2008) this study clearly shows the changing retail scene in India. Food, groceries and apparel

purchase by customers contributed to 52% of sales in malls. On an average, 75% of customers spend about 1-3

hours in the mall. Malls with multiplexes such as cinema theaters, food courts, and play areas for children are

becoming the centers for family outings.

Mehta (2009) state that large malls have brought about huge growth potential for the city and changes in the

consumer buying behavior.

Dobbin (2011) this study states that shopping behavior has changed and malls have become the landmark of

urban shopping and the city. In India, malls have transformed shopping from a need-driven activity to a leisure

time entertainment. The quality mall space, which was just one million sq. ft. in 2002, had accomplished new

milestones of 40 million sq. ft. and 60 million sq. ft. in 2007 and 2008 respectively. There is a paradigm shift in

the mall scenario from just three malls in 2000 to 220 malls in 2006.

Ammani. P (2013) in his study explains that shopping malls are gaining importance as places of recreation,

apart from the experience of shopping, for many in metros and cities. According to the Global Retail

Development Index 2012, India ranks 5th among the top 30 emerging markets for retail.

2.1 Objectives of the Study

The main objectives of this research paper are

• To learn how shopping malls affect the real estate rents in the surrounding area.

• To understand people’s preferences when renting a house with respect to their ages.

• To identify the effect of shopping malls on the traffic in the surrounding area.

• To help people understand how their choices and attraction towards shopping malls have affect their

daily life and their city.

2.2 Hypothesis

• Real estate rent value around shopping malls in high.

• Youth (17-29) in the urban cities will prefer to live next to shopping malls than any other place.

• Adults (30 and above) prefer to live near their workplace or educational institutions than shopping

malls.

• Peak hours of shopping malls are same as the peak traffic time in the area.

2.3 Research Methodology

• The research design is exploratory.

• Both primary and secondary data were utilized. ➢Survey and observation method was employed.

• The sampling method adopted was convenience sampling.

• The study was carried out in the city of Bengaluru.

• Sample size is 85, Out of these 85 responses – 24 were from teaching and non- teaching staff (adults)

and 61 from students (youth).

• Sample area: Azim Premji University Undergraduate Campus.

3. Data Sources 3.1 Primary data Survey done in Azim Premji University Undergraduate Campus.

Real Estate Rent

• 99acres.com

• Magicbricks.com


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• Nobroker.com

(Note: in all the above three websites the data was collected for a standard threebedroom, 2000 sq. ft.,

independent house.)

Traffic

• Google Search Engine, Google Maps

3.2 Secondary Data - Shopping mall name and size –from their official website and Wikipedia

4. Descriptive Analysis A survey was sent out to the students and staff in Azim Premji University Undergraduate Campus. The survey

contained two questions about their current house location and their preferred location for their house. There

were responses from 89 responses from which 85 was randomly picked.

Table No. 1 Current House Location

CURRENT HOUSE LOCATION NO. OF HOUSES

Near Educational Institutions 27

Near Shopping Malls 21

Near Companies 7

Near Industries 5

Near Workplace 10

Others 15

Total 85

Source: Primary Data

Graph No.1: Current house Location

4.1 Interpretation The above pie-chart shows that most of the students and staffs currently live near educational institutions than

compared to shopping malls. This can be interpreted as most parents wanted to live near their children’s schools

or colleges. The ‘others’ included parks, hospitals, banks etc.

Table No. 2 Preferred House Location

Preferred House Location No. Of Houses

Near Educational Institutions 23

Near Shopping Malls 26

Near Companies 2

Near nature 16

Near Workplace 7

others 11

Total 85


Educational Institutions

34 %

Malls 26 %

Companies 6 %

Industries 5 %

Workplace 10 %

others 19 %

CURRENT HOUSES LOCATION


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Graph No.2: Preferred House Location

4.2 Interpretation

The above pie chart showed a mixed response from people in Azim Premji University. It showed that mostly

people preferred shopping malls due to large number of student responses. The second and third place was taken

by educational institutions and nature respectively. Surprising, many people wrote nature as their preference

which conveyed that people are tired of urban lifestyle.

Table No.3 Staff Preference in their House Location

Staff No. of Houses

Educational Institutions 7

Shopping Malls 7

Nature 4

Workplace 6

Total 24


Graph No.3: Staff preference in their House Location

4.3 Interpretation This pie chart shows that the staffs of APU prefer both shopping malls and educational institutions equally

which contradicts the hypothesis. Secondly, they prefer staying near workplace and then nature.

2 %

2 %

1 %

2%

Staff's

Educational Mall natur workplac

Educational Institutions

27 %

Malls % 31

Companies %

nature % 19

Workplace 8 %

others 13 %

PREFERRED HOUSE LOCATION


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Table No.4 Students’ preference in their House Location

Students No. of Houses

Educational Institutions 16

Shopping Malls 21

Nature 19

Others 5

TOTAL 61


Graph No.4: Students’ Preference in their House Location

4.4 Interpretation

This pie chart shows student’s preference in their house location. Most of them selected shopping malls and then

nature. This also hinted that students (youngsters) like nature more than staffs (adults).

This survey was done to find people’s preference in their house location and to see if shopping malls were in

their top preferences. This also helped us to find the difference in preferences between adults and youngsters.

4.5 Real estate To prove that shopping malls affect the real estate rents around in shopping mall’s location – 10 malls in random

areas of Bangalore was taken. Average rent of 30 houses within 3 kilometers from the mall and after 3

kilometers was calculated.

Table No. 5 Shopping Mall and Rents within 3 km and after 3 km

Shopping Malls Within 3 Km After 3 Km

UB City 90000 39000

Orion Mall 52000 36000

Mantri Square Malls 65000 57000

Inorbit Mall 43000 27000

Royal Meenakshi Mall 40000 30000

Garuda Mall 43500 32000

The Forum Mall 46000 33000

Bangalore Central Mall 40500 35000

Central bellandur 29500 22000

Gopalan Mall 21500 20000

Source: Secondary Data

26 %

35 %

31 %

8%

student's preference

Educational Institutions Malls nature others


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Graph No. 5 Shopping Mall and Rents within 3 km and after 3 km

To study the relation between the malls and the rents, the Shopping mall size and the ‘within 3 km’ average

rent were taken into consideration.

Table No.6 Size of the Shopping mall and the Rent within 3 km

Shopping Mall Size In Sq. Ft. Rent In Rs.

UB City 10,00,000 90000

Orion Mall 8,00,000 52000

Mantri Square Malls 4,00,000 65000

Inorbit Mall 3,39,000 43000

Royal Meenakshi Mall 3,10,000 40000

Garuda Mall 2,80,000 43500

The Forum Mall 3,00,000 46000

Bangalore Central Mall 1,20,000 40500

Central bellandur 98,365 29500

Gopalan Mall 2,50,000 21500


Graph No.6: Size of the Shopping mall and the Rent within 3 km

The above graph has a high correlation of 0.811282194. This proves that there is some relation between the

rent and Shopping mall being in the same area.

Traffic To prove the relation between the Shopping mall and the occurring traffic (intensity) in the same area - the peak

hour of the Shopping mall and the level of traffic in that area at that time were considered for the above ten


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Shopping malls. The level of traffic was calculated with the help of a three-liter scale.

1 – Low 2 - Moderate 3 – High

This was calculated for a whole week and correlation between the above two attributes was found for every

single day hoping to find some trend.

(NOTE: The Shopping mall names will not be given and the time, traffic is already sorted in ascending order)

Table No. 7 The sorted mall Peak Hour Vs Traffic Level for Monday

Mall - Peak Hours (24 Hr) Traffic Level

15 3

15 3

16 3

16 2

17 2

17 3

17 1

18 3

19 2

19 2


Graph No. 7: The Sorted Mall Peak Hour Vs Traffic Level for Monday

On Monday there is a negative correlation coefficient of -0.394771017.

Table No. 8 The Sorted Mall Peak Hour Vs Traffic Level for Tuesday


16 1

16 2

16 2

17 3

17 2

17 1

17 2

18 3

19 3

19 1

Source: Primary Dat


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Graph No. 8: The Sorted Mall Peak Hour Vs Traffic Level for Tuesday

On Tuesday, there is a mild positive correlation coefficient of 0.239731651.

Table No. 9 The Sorted Mall Peak Hour Vs Traffic Level for Wednesday


16 2

16 1

16 2

16 2

17 2

17 2

17 2

18 3

18 1

19 2


Graph No. 9: The Sorted Mall Peak Hour Vs Traffic Level for Wednesday

On Wednesday, there is a mild positive correlation coefficient of 0.185695338.

Table No. 10 The Sorted Mall Peak Hour Vs Traffic Level for Thursday


17 2

17 1

17 1

18 3

18 3

18 2

18 2

19 3

19 2

19 3



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Graph No. 10 The Sorted Mall Peak Hour Vs Traffic Level for Thursday

On Thursday, there was a slightly high positive correlation coefficient of 0.690065559.

Table No. 11 The Sorted Mall Peak Hour Vs Traffic Level for Friday


15 1

16 1

16 2

17 2

17 2

18 3

18 3

18 3

19 3

19 2


Graph No. 11: The Sorted Mall Peak Hour Vs Traffic Level for Friday

On Friday, there was a slightly high correlation coefficient of 0.779336054.

0

0.5

1

1.5

2

2.5

3

3.5

0 2 4 6 8 10 12 14 16 18 20

Tra

ffic

lev

el

24 hr time

Correlation - Friday TRAFFIC LEVEL Linear (TRAFFIC LEVEL)

0

0.5

1

1.5

2

2.5

3

3.5

0 2 4 6 8 10 12 14 16 18 20

Tra

ffic

lev

el

24 hr time

CORRELATION - THURSDAY TRAFFIC LEVEL Linear (TRAFFIC LEVEL)


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Table No. 12 The Sorted Mall Peak Hour Vs Traffic Level for Saturday

Mall - Peak Hour Traffic Level

10 2

12 2

12 2

15 3

15 2

15 2

17 3

17 3

18 3

18 3


Graph No. 12 The Sorted Mall Peak Hour Vs Traffic Level for Saturday

On Saturday, there was a significant high correlation coefficient of 0.800036284.

Table No. 13 The Sorted Mall Peak Hour Vs Traffic Level for Sunday

Mall - Peak Hour Traffic Level

11 2

12 2

12 2

15 2

16 2

16 2

17 2

18 3

18 3

19 3


0

0.5

1

1.5

2

2.5

3

3.5

0 2 4 6 8 10 12 14 16 18 20

Tr

aff

ic

Le

vel

24 hr time

Correlation - Saturday TRAFFIC LEVEL

Linear (TRAFFIC LEVEL)


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Graph No. 13 The Sorted Mall Peak Hour Vs Traffic Level for Sunday

On Sunday, there was a high correlation coefficient of 0.713680354.

Table No. 14 All the days of the week with their Correlation

Days of the Week Correlation Coefficient

Monday -0.394771017

Tuesday 0.239731651

Wednesday 0.185695338

Thursday 0.690065559

Friday 0.779336054

Saturday 0.800036284

Sunday 0.713680354


Graph No. 14: All the Days of the Week with their Correlation

The above graph showed us a trend present in the correlation between Shopping mall peak hour and the traffic

level. There is a continuous rise in the correlation coefficient (exception Wednesday - where there is a small dip)

and Sunday it gradually reduces as it is a holiday for most working people. Therefore, the tension in traffic

gradually reduces which in turn reduces the coefficient of Sunday.

5. Findings 1. The preference of people while renting house changed with respect to their ages. Even though most of the

people in survey lived near educational institutions and shopping malls, in their preferences-

• Youth (Students) preferred Shopping Malls and Nature

• Adults (Staff) preferred Educational institutions and Shopping malls

2. There is a close relation between the shopping mall and house rents in the same area as it can be seen

through the high correlation coefficient.

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

CORRELATION COEFFICIENT


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3. There is also a close relation between shopping malls and the traffic in the area. even though it might not be

the only cause but it has some influence on it.

4. There was also a trend found in shopping mall and traffic level (intensity) correlation.

6. Conclusion

Even though shopping malls play an important role in the Indian economy, their effects on the city are greater.

They don’t just affect only the land but also have effect lots of other things like rent, traffic, water usage and etc.

They have become a part of everyone’s life just like technology. Government should be very cautious and

should play a very important role in the development of city through Shopping malls before the approval is

given for construction. It should consider all the other factors which affects the public. While writing this

research paper I came to understand a lot about the shopping malls as well as the city and I hope this paper also

helps every common man to understand the influence of shopping mall on the city.

7. Bibliography 1. Prathamesh Muzumdar, Quantitative Analysis of Compensatory Model: The Impact of Shopping Malls on

the City Structure, The IUP Journal of Knowledge Management, Vol. XII, No. 2, 2014

2. Dobbin L, “Reasons Why People choose Malls”, January2011, available at

http://www.articlerich.com/Article/Reasons-Why-People-choose-Malls/1284968,

3. Ammani. P, A Study of the Factors That Influence Customer Preference for Shopping Malls over Local

Markets,The IUP Journal of Management Research, Vol. XII, No. 1, 2013

4. Dalwadi R, Harishchandra S R and Atul P, “Key Retail Store Attributes Determining Consumers’

Perceptions: An Empirical Study of Consumers of Retail Stores Located in Ahmadabad (Gujarat)”, SIES

Journal of Management, Vol. 7, No. 1, pp. 20-34, 2010

5. Harvinder Singh and Srini R. Srinivasan, Mall Management: Operating in Indian Retail Space, Tata

McGraw-Hill Education Private Limited, New Delhi. First Edition 2012.

6. Rajagopal (2009), “Growing Shopping Malls and Behavior of Urban Shoppers”, Journal of Retail and

Leisure Property, Vol. 8, No. 22, pp. 99-118.

7. Swamynathan R., Mansurali A and Umesh Chandrasekhar, Mall Mania: A Study of

8. Factors Influencing Consumers’ Preference Towards Shopping Malls in Coimbatore City, The IUP Journal

of Marketing Management, Vol. XII, No. 4, 2013

9. Credit Analysis and Research Limited, “The Indian Retail Industry 2012”, May 2012.

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Shopping Mall and Its Impact in the City Life a Study With