Parking, Retail and Urban Attractiveness

Transcription

1 4 th European Conference on SUMPs Parking, Retail and Urban Attractiveness 30 March 2017 Giuliano Mingardo Erasmus University Rotterdam

2 Agenda Setting the scene for parking policy Misunderstandings in parking policy Parking and Retail How can parking help the retail sector 3 April

3 Setting the scene Cities have followed the same development pattern in parking policy No policy (free parking) Time restrictions RETAIL CRISIS Paid parking 3 April

4 Misunderstandings in parking policy There are two major misunderstandings in parking policy: 1. Free parking exists; 2. Paid parking is bad for the city economy; 4

5 Free parking Free parking does not exist!! The price of parking is included in the costs of all other products and services we buy. 5

6 Free parking does not exist! The price of this is included in this! 6

7 Parking fee as a tax? The lower the parking fee I pay as a visitor, the higher is the subsidy I get from the city Low parking fees for visitors = higher taxes for citizens 7

8 Parking and Retail

9 High Street: the problem Many urban areas in Europe experience problems with the retail sector such as: Decreasing turnover; Decreasing footfall; Increasing vacancy; This problem affects also the parking sector for two reasons: Less income for the parking sector; Often parking is blamed to be the reason for the retail problem; 3 April

10 Retail and Mobility 3 Apri l 201 Most of retailers are afraid/against any kind of policy that might reduce car use in city centers The debate between retailers and policy makers is usually based on emotions Taking (investment) decisions based on emotions is usually not a good idea! 10

11 Retail Crisis There are three main reasons why traditional retail in cities is having a difficult time: a) In the last years we have been through one of the deepest economic crisis since decades; b) Internet has dramatically changed consumer behavior; c) We increased retail supply (n. of shops) at the time we needed the least (a+b) 11

12 No parking, No business Is it true? 12

13 Why do retailers think that parking is important? Because they think that the majority of their customers come by car; Because they think that car drivers are better customers [spend more money] than customers travelling by other modes; Because they often think that parking can be free; WHY IS THAT? 13

14 No parking = No business? Several researches have been done on this issue One result: No parking = No business is a huge misunderstanding! 14

15 How to read the next slides 15

16 Strong (positive) relationship between A and B No relationship between A and B 16

17 Role of parking in shopping areas: KSO Apri l 201 Year: shopping areas in 158 municipalities in the Randstad; More than 70,000 respondents 17

18 Do Parking tariffs Explain Turnover (for Daily Goods)? Turnover per m uurtarstr07 Parking tariff ( /hour) ProdDag Fitted values Very small R² of regression No causal relationship; model not significant

19 Does Parking Capacity Explain Turnover (for Daily Goods)? Turnover per m capstr07 ProdDag Fitted values Parking capacity (n. of places) R² is zero! No causal relationship

20 Does Parking Capacity Explain Turnover (for Non-Daily Goods)? Turnover per m capstr07 Parking capacity (n. of places) ProdNDag Fitted values Very small R² of regression No causal relationship

21 Do Parking tariffs Explain Turnover (for Non-Daily Goods)? Turnover per m uurtarstr07 Parking tariff ( /hour) ProdNDag Fitted values Very small R² of regression No causal relationship

22 What Characteristics Do Shoppers Consider? Rank Motive Mentioned by 1 Closeness to home 60% 2 Completeness of shops 3 Completeness of products 38% 25% 4 Parking 18% 5 Accessibility by car 16% 6 Amthmosphere 14% 7 Product pricing 13% 8 Parking tariffs 5% In total: 12 shopping motives included in the survey Parking and accessibility by car among the top5 motives Still, only important for around every 6th person in the survey

23 KSO 2016 Bron: I&O Research en DTNP (2017) 3 April

24 Turnover per m² ProdTot CAR Modal Split Car WALKING MSTotlopend ProdTot Turnover per m² BIKE HOW CUSTOMERS TRAVEL TO THE SHOPPING AREA HAS NO INFLUENCE ON THE TURNOVER!!!! Mode of transport vs. turnover m MSTotFiets PT Modal Split OV

25 Turnover growth per size of the shopping area (Rabobank, 2013) Turnover growth PAID PARKING HAS NO INFLUENCE ON THE TURNOVER!!!! Paid Parking Free Parking 25

26 3 Apri l 201 Do you really think IKEA is successful because of this? 26

27 How do you explain this? 3 Apri l

28 Do they offer free parking? 3 Apri l

29 How can parking help the retail sector?

30 The numbers tell the tale Parking data can provide very usefull information 3 April

31 Parking transactions Culemborg May N= 2,166,794 kort lang

32 Average parking duration Culemborg May

33 Parking transactions Culemborg on Saturday Parking duration: 1 60 min 60+ min N = 115,751

34 Parking transactions Culemborg on Saturday Age: N =115,751

35 Conclusion

36 Can't see the wood for the trees if someone can't see the wood for the trees, they are unable to understand what is important in a situation because they are giving too much attention to details 36

37 THANKS 3 April

38 Four-step model 3 Apri l 2017 How does the consumer take his/her decision about buying a product? Four-step model: 1st step: Do I buy the product or not?; 2nd step: What product shall I buy? 3rd step: Where shall I buy it? 4th step: How do I go to the shop? 38