Power centres: A new retail format in the United States of America

Power centres are primarily agglomerations of big box retailers. Even though the first power centre was only opened in 1986, there were 713 power centres in the United States by the end of the 1997. This paper addresses the evolution of power centres in the United States and discusses the differences between power centres and traditional shopping centres. Also presented are the operating results, sales figures, location, consumers, trading areas and the advantages and disadvantages of power centres for consumers, retailers and investors. Two power centres are described in detail. These observations are based upon a review of the literature and analyses of industry data. Power centres in Chicago, Washington, DC, California and Texas were also examined. Interviews with developers of power centres helped verify published data. Although power centres may develop in other countries, they are not likely to be as successful in Europe as they are in the United States. (C) 2000 Elsevier Science Ltd. All rights reserved.