Evaluation of high streets shopping management approach in the case of Istiklal Street

EVALUATION OF HIGH STREETS SHOPPING MANAGEMENT APPROACH IN THE CASE OF ISTIKLAL STREET SUMMARY The changing consumer habits and improving e-trade turnovers, brought the necessity for changes in the retail sector in global perpective. This fact, effected the pysical store presence, where some retailors chose to spread to wide fields with lower number of opening and some chose to decrease the sizes of their stores.to by focusing on consumer needs and increaseing the effieciency. On the other side, conumers are demanding uniqe and personallized stores from the retailors where they can experience different tastes. The retail sector and the high street shopping retail had impact from the changing needs of the consumers, economic and political volatility, increasing urban transformation, construction works, changing profile of the tourists and increasing security awareness, which decreased the desirability of the high street shopping. This study focussed on 3 high street shoppings in İstanbul as İstiklal, Nişantaşı and Bağdat Streets. These 3 streets cover, 202.000 sq. m GLA in aproximetly 1.000 store units. Thereof the about figures are located as 40% in Bağdat Street, 33% in İstiklal Street and 27% in Nişantaşı area. İstiklal Street is the worlwide known high street of İstanbul, hosting the highest number of pedestrian traffic, because of its historical and touristical attractions. However, the Street is on the losing side in recent years, due to the economycal and politic defects as well as the ongoing construction works, changing tourist profile and security reasons. The retailers also suffered from these negative factors. Many high streets through Europe, are being managed by public-private partnership companies or voluuntary organisations, in order to keep the desirability and the economycal life of the streets. The duties and the power of these companies or organisation are; • Forming a visual and complete identity for the street. • Preserving the historical texture. • Managing the shop-mix and shop visuals • Holding events, campains and activities. • Negotiating the leasing processes of the new stores and locations. • Managing the security, cleaning and traffic services on the street. • Managing the relations with municipality and other local authorities. Within the theses study, the High Street Shopping, which is the main anchor for the retail sector, has been analysed with examples from around World and Turkey. This thesis aims to measure the effect of a management model to the High Street Shooping attractiveness, which combines planning, organisation and managment technics. In this respect, two separate questionnaires with consumers and retailers were conducted in order to analyse shopping habits, thoughts on the services and events taking place at İstiklal Street and their perception towards high street shopping management. Consumers and retailers were directed two seperate surveys, with consumer survey covering 24 questions under 4 topics and retailor survey covering 29 questions under 4 topics as well. Consumer survey is conducted by 300 people and retailer survey is conducted by 55. The questions and answers are summarized below. The questions directed to the consumers were aiming to determine the demographic structure, shopping habits, toughts on İstiklal Street and their evaluations on high street shopping management. The questions directed to retailer were aiming to determine the profile of the retailer, location criteria, their store performance in İstiklal Street and their toughts on high street shopping management. Outcome of the both questionnaire were blaming the negative view of the construction and urban transformation works, changing tourist profile and security as the reasons behind the decreasing demand for the street. In addition, the retailers have highlighted high rent figures as a thread. According to the quaestions about the shopping habits, approximately 86% of respondents were found shopping on the internet and 14% of them said that they made more than 50% of their total purchases from the internet. The answers confirm the finding that Internet shopping has widespread in recent years. The ready to wear - sporting goods category is specified as the most shopping categories on the internet, book - journal - gift goods, holiday - travel categories have the second and third order. Customer questionnaire highlighted that İstiklal Street is attracting the visitors mainly for the social-cultural events. 60% of the reason for the last visit to the street was answered as social activity (Meeting friends, gastoronomy activities e.g.) by the consumers. Cultural and art activities are also taking the second place for the visit reason, whereas shopping has only 6.6% share amongs the reasons of visit. This verifies that İstiklal Street is not a desirable palce for shopping. In line with the recent trend, the consumers are pursuing for Gourmet restaurants, cafés, exhibitions, museums and boutique shops. The retailer questionnaire, highlights the advantages of high street shopping with having no common charges, flexible opening hours and contract negotiations. The shopping malls are highlighted with, rent levels, higher turnovers, higher number of customers, customer profile, accesibility means. Retailers pointed the İstiklal Street as the most wanted store locationg in a high street. It is followed by Bağdat Street, Nişantaşı, Beşiktaş Çarşı, Kadıköy Bahariye Street, Bakırköy İstasyon Street. And Ümraniye Alemdağ Street. On the other hand, retailers, although they have the appetite to open street shops, have cold feet due to the problematic contract negotiations and relations with municipality and local authorities. The uncertainty and volatility at the rent prices and currency is another constraint for international brands, where they used to have solid rent figures that change according to the store size and category in shopping mall side. The high streets are not reflecting a common currency for the rent payments. 58% of the retailers reflect that their store in İstiklal Street is always within the first 5 stores as performance, 18% reflect that it is always the best performing store and 9 % reflect that it is always 1 or 2 spot. Only 15% of the retailers say that their store in İstiklal Street have low performance, which shows on the other hand that 85% of the retailers are happy with the performance of their stores. Consumers showed that their awarness about the high street shopping management is low. 71% of the consumers reflected that they have never heard of it. Nevertheless, the retailers are mostly aware of the high street shopping management with 77%. Just like the examples around the World, consumers and retailers think that a Street Shopping Management Organization which will manage the problems of both consumers and retailers, the shop-mix, the event and perception and the relations with the municipality and the local authorities is considered to increase the potential of İstiklal Street and will help İstiklal Street to gain back its previous desirability. It is presumed that the study will be source for the retailers or investors, which already have shops or shopping malls on the street as well as to the entities who are willing to develop high street shopping management model into real life.