The fear of losing customers due to a lack of parking spaces has long been a concern for retailers. However, a recent study has shown that having parking spaces directly in front of a store may actually harm the retail industry rather than help it. In many cities, parking spaces and streets in the city center are being converted into areas for pedestrians and cyclists, with some cities even considering banning combustion engine cars altogether. Critics of these measures argue that car-free zones harm local businesses. However, a study by the Research Institute for Sustainability (RIFS) published in the journal Transport Findings suggests that retailers may be overestimating the importance of cars to their customers.
Researchers from the Rheinisch-Westfälische Technische Hochschule Aachen (RWTH Aachen), led by Laura Merten, have conducted a new study to investigate how parking spaces affect the retail industry. The scientists analyzed data on retail rents from 2015 to 2022, with higher square meter prices indicating greater attractiveness. The researchers then used a spatial model to examine how rental prices were affected by other factors, such as location in a pedestrian zone or distance to the nearest public transport stop. Surprisingly, the study found that the distance to parking spaces had the greatest impact on rental prices.
The results of the study may seem paradoxical at first glance. While a high number of street parking spaces within 100 meters of a store can reduce rental prices, parking spaces located between 100 and 500 meters away have a positive effect. The researchers suggest that reducing the number of street parking spaces in city centers could free up space for other uses, while making better use of existing parking capacity in parking garages. The study’s authors argue that businesses can reach their full potential when the street in front of them is not overcrowded with parked cars, while having sufficient parking spaces within reasonable walking distance is also beneficial.
