Effect of neighborhood income and consumption on retail viability: Evidence from Seoul, Korea

초록

Retail activities and their performance have been critical issues in studies on urban economics and spatial structure, mixed-use development, retail deserts, and neighborhood gentrification. A debatable topic is whether neighborhood income is associated with retail presence and prosperity. To investigate this, many studies have focused on the connection between neighborhood income and spatial patterns of retail business. However, it is yet to be determined how both neighborhood income and consumption are linked with retail viability, as indicated by sales in retail cluster areas and hinterlands. This study focuses on this unexplored topic and investigates the connection between neighborhood income, consumption, and retail sales. Empirical analysis reveals that higher income and expenditure are correlated with higher retail sales. The influence of neighborhood income on retail sales was stronger than that of neighborhood consumption. The patterns that emerged were more evident in the hinterlands, where many consumers are located and retail presence is lower, than in retail cluster areas that have fewer residents. Regarding types of retail activities, neighborhood income and consumption significantly explain the sales variation of retail stores and restaurants. These findings provide insights for retail-based neighborhood resilience, urban design and transportation policy, and neighborhood economic development. © 2019 Elsevier Ltd

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