Retail Development in The Netherlands: Evaluating the Effects of Radical Changes in Planning Policy

Abstract

After long years of a protective national retail planning policy, the Dutch national government decided in 2004 on a radical shift with respect to this policy, by abolishing restrictive retail regulations. The provinces have recently responded by reinstalling the main elements of the national retail planning model at the regional level. This article shows that nevertheless unintended structural changes in the Dutch retail landscape have occurred. Building on theoretical perspectives on institutional change and normative approaches to planning, the article evaluates the rationale behind the shifts in the planning regime and the extent to which the “new” planning regime meets the conditions for a collaborative planning approach. Additionally, regional differences in the effectiveness of retail planning are analysed and related to regional differences in the planning regime.

Notes

See also Borchert (1995), Buit (1988), Gantvoort (1993), Gorter et al. (2003), Spierings (2006a, 2006b), van der Krabben et al. (2005) for studies of Dutch retail planning policy.

Case studies are based on research consultancy work by the author on behalf of regional and local authorities and the property development industry, in the Rotterdam region (Ecorys Real Estate, 2002), the Zuid Kennemerland region (Haarlem, Haarlemmermeer) (Ecorys Real Estate, 2006a), the Gooi en Eemland region (Amersfoort, Hilversum) (Ecorys Real Estate, 2006b) and the province of Friesland (Leeuwarden, Heerenveen) (Ecorys Real Estate, 2006c).

See, for instance, Crosby et al. (2005), Guy (2007), Jackson (2001), Jackson and Watkins (2005), Lowe (2000), Thomas and Bromley (2002) and Thomas et al. (2004) for UK references regarding retail planning.

Note that peripheral or out-of-town locations in the Dutch context usually are within the urban envelope and connected to the existing infrastructure.

However, a study by IMK REA (1997) showed that already in the 1990s “other” retail sectors were located on some of those retail parks. Local governments had apparently been able to create more flexibility than officially allowed.

Guy (1998, p. 958) defines a retail park as “an assembly of three or more retail warehouses”. Retail parks are often located in industrial or warehousing districts; goods that are being sold are often confined to bulky household goods (furniture, DIY supplies), but sometimes a wide range of “high street” goods is being sold. Out-of-town regional shopping centres (outside the traditional shopping areas) “provide the full range of goods and services which one would expect in a medium-sized town centre, but under one roof” (Guy, 1998, p. 958).

This refers to the phenomenon that can be observed best during Christmas time: Christmas decorations can be bought in almost every shop, from supermarkets to DIY stores.

Note that there are no indications that certain innovative developments in the retail market do not take place in the Dutch retail sector. A recent study by Guy and Bennison (2007) in England shows the retail industry's flexibility to adjust its store concepts to the regulations for retail developments.

Though this may be common practice in many European countries, it is certainly not in the Netherlands: place-making in Dutch cities is usually initiated by the municipalities and municipalities take the lead in the development process.

Note that in most Western European countries national retail policy aims to protect town centre retailing. However, to what extent this policy allows out-of-town retailing is, like in the Netherlands, a subject of debate (Guy, 1998, 2007).

Note that the methodology used for calculating the available market space for future extension is not undisputed, but it still is common sense in the Netherlands to make use of this methodology and it underlies the major part of local government decisions about new retail developments. This practice is, however, not in all respects reliable because, among other things, it neither takes account of the quality level of the present retail stock, nor of the location requirements of retailers.

This does not have to be alarming. A possible explanation for the relatively low floor space productivity in Friesland can, for instance, be found in the combination of relatively low property prices and relatively low urban densities in Friesland. As a result, the average size of retail stores may be relatively high.