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ABSTRACT
The number of shopping centers in rural communities has increased rapidly in recent years. Downtown merchants and local government officials have been concerned about how the increased competition affects existing downtown businesses. This paper reviews the economic impact of shopping centers on downtowns of twelve rural Wisconsin communities. Three general aspects are analyzed: (1) the demand characteristics of each community; (2) change in the community's retail market behavior; and (3) direct measures of the shopping center's impact on downtown businesses.
The study results show that the introduction of a shopping center does not assure that the small community will capture its retail market potential. The growth in some retail categories appears to be more a consequence of improved store management or the addition of a single store either in or out of a shopping center. With respect to existing downtown businesses, adding the shopping center seems to have limited economic effects.