Shopping centres

Heart of Europe Stifling Under Concrete:The construction boom of shopping centres in Prague

Foreword

The Shopping Gallery Harfa opened fall 2010. The Fenix Shopping Gallery opened in 2008. They both lie in a driving distance of approximately 5 minutes from the biggest shopping area in Prague and the Czech Republic - OC Letňany built in 1999. I visited Fenix on the 23rd December and it felt like ghost town. On one of the busiest days of the year! This experience made me wonder, how is it possible, that energy and resources are wasted for redundant chapels of consume. In Czech Republic the so called area standard – square metres of shops per inhabitant – has tripled since 1989 from 0,331 to 1,1 in 2009. That means that every citizen in this country has their own square metre for shopping. Out of these, shopping centres present 0,26 sq m per inhabitant(sq/inh). Compared to Liberec for example, which has a value of 1,4 sq/inh, Prague might seem quite empty with its 0,72. The velocity of new shopping centre openings however teases common sense. Prague is fancied for its intimacy and was honoured to become a part of the UNESCO world heritage in 1992 thanks to its historical value. Does the construction boom present a threat for its uniqueness? Sýkora (2006) warns that new investments after 1990 contributed to densification in central city morphology including rapid growth in car traffic and consequent congestion, which turned out to be especially critical in Prague. Furthermore, Sýkora adds, there have been numerous conflicts between investors and the protection of historic buildings and urban landscapes. Another argument in the discussion is environmental sustainability. As the City Development Authority Prague points out, developing commercial areas significantly increase the proportion of built-up land and so decrease opportunities for setting up adequate proportions of greenery. Numerous civic petitions for maintaining parks or other free land in different parts of the city were signed. Rumour has it though that in the Czech Republic, the democratic governance of people is carried out without the people. I will take a closer look at the situation of shopping centre construction in Prague and try to find out, what is happening and whether there is a problem of some kind.

About shopping centres in general

Shopping centres have been replacing traditional markets since the previous century. They represent the modern lifestyle as they are sometimes called the chapels of consume.
I.Smolová provides an overall definition: “A Regional Shopping Centre is an architecturally unified complex of commercial facilities planned, constructed, owned and administered as a whole. They represent a concentration of retail stores, catering and services (entertainment and cultural establishments, e.g. multiplex cinema) aiming to satisfy the customers’ requirements in the field of goods and services in a short-term, mid-term and long-term perspective. The basis of shopping centres is formed by big retail units of the hypermarket type and by specialized superstores (e.g. hobbymarket).”
The localization of SC is determined mainly by the proximity of potential customers and accessibility by transport. Given the ratio of sales area to total required area stands at approximately 1:7, the localization is limited by the offer of development areas and by lot prices. Concerning Prague, the most wanted places are edges of the city and its high streets.

Shopping centres in the Czech Republic with a focus on Prague

Shopping centres did exist before 1989 – every citizen then knew the famous first western-like Retail House Kotva for example, nevertheless the massive spreading of this shopping phenomenon began after the revolution in 1989 as a result of joining the global market. The capital city Prague forms a kind of bridge between the national and foreign market, therefore it has been affected the most by globalization and internationalization. The service sector has grown rapidly, leaving industrial brownfields in several parts behind. The most visible recent urban tendency is suburbanization including outward migration and commercialization. Stores, logistic centres and shopping areas are built. As I mentioned in the foreword, the so called area standard – square metres of shops per inhabitant – has tripled since 1989 from 0,331 to 1,1 in 2009 in the Czech Republic. Prague belongs below the average with the value of 0,87 sq m per citizen. The total number of shopping centres in the capital is 38, their area present 33% of the national SC area (CBRE, 2010).

Figure 1: CBRE, 2010

Figure 1 shows that shopping centres experiencied a steep increase in construction in the year 1998. The peak was in 2008, which is the year of opening of big Prague shopping centres like Arkády Pankrác (40 000m²) or the already mentioned Fenix Gallery (12 000m²). Most of the new supply was placed in smaller towns however - the focus of investors moved our of cities to these less saturated regional towns. The graph shows there has been a decreasing tendency in the last two years. In 2010, the financial crisis displayed in construction maybe even more than in others fields, in Prague only one shopping centre opened (Harfa Gallery).

Legislation

Three main laws are relevant to the topic of shopping centre construction in the Czech Republic. Firstly it is The Construction Law no 183/2006 of the Code, secondly the Law no 334/1992 of the Code about Protection of Agricultural Soil and lastly the Law no 100/2001 of the Code containing Environmental Impact Assessment (EIA). These include general principles of the building processes, conditions of use of agricultural soil for other than agricultural purposes and criteria for EIA (for example since 2007, projects with less than 3 000 m2 and less than 100 parking lots can be omitted from the EIA).  Complex regulations concerning specifically big shopping centres are missing though.

Policy and Planning

In the Czech Republic, the responsibility of policy making rests primarily with city governments. The problem is that the so called functional urban region extends the political boundaries of the core cities. As concerns Prague it is surrounded by over 170 small municipalities, which are economically and legally independent units and whose decision-making lacks wider coordination. Moreover the metropolitan area of Prague is governed by two regions – Prague itself and Central Bohemia which tend to compete rather than cooperate in the question of common development.
Prague itself as a statutory town has its municipal territory divided into 57 boroughs, therefore establishing a second tier of local governments, which take advantage of the gained partial autonomy in decision making. However they ought to respect two citywide planning documents – The Master Plan and The Strategic Plan. The former is a physical plan that specifies the special arrangement and land use in the medium term perspective, the latter specifies long term priorities of socio-economic development.

The Strategic plan declares controlled development and coordinated management and decision-making in order to achieve prosperity, healthy and cultural environment and preservation of values, which make Prague one of the most beautiful cities in the world. It is an agreement between politicians, specialists, corporate sector representatives and citizens. One of the five pillars focuses on Quality of environment: “Prague endeavours to achieve a high quality of both natural and urban development, while observing the principles of sustainability. It wants to substantially reduce pollution in the city and create balance between human settlement and landscape in order to become a clean, healthy and harmonious city.” Besides these two documents, Prague worked on policies according to the EU demands and created a Regional Development Strategy which basically matches the Strategic Plan.

A feedback of the current policy

In this part, a resume of a feedback document - Planning Analytical Materials - carried out by the City Development Authority Prague in 2008 is provided:
The lasting pressure on building new shopping centres and office complexes is seen as a threat to the content of a lively metropolitan structure and to the transport network. New European trends turn their attention to mixed compact construction with lower capacity facilities. Newly constructed and reconstructed big capacities of retail and offices, such as the newly opened Palladium complex, stress traffic because of parking demands and with their 100% built-up land limit areas for new parks or greenery for relaxation of local inhabitants and workers. Due to more interest in investment the survival of existing parks in the Prague city centre is endangered as well.
The negative trend is low support of the private sector it fulfilling financially less attractive functions of the city, which includes public facilities, greenery and recreation areas. There also exists a disproportion between customer interest in traditional dispersed retail network and the new fashion of travelling to big shopping centres in the outskirts of Prague which generates traffic and so causes damage to the environment.
A Problem solvable by the Mater Plan is insufficient coordination of store and logistic areas in the city surroundings. What is beyond the competences of the plan however is regulation of retail network in favour of smaller units as well as the pressure of economic land use at the expense of urban aspects and environmental protection.
The Planning Analytical materials of 2008 recommend that no more land is dedicated to big shopping centres except for newly suggested district centres.

Problems connected to commercialization – urban, environmental and social aspects

Besides benefits (employment, shopping availability, economic growth...), the construction og shopping centres is followed by numerous unpleasant consequences. A list of the most important one follows.

1. The question of population decline in the city centre emerges as more and more buildings are loosing their residential function and used for office or retail areas instead.
2. As a result, people move out of the centre but commute there to work or for shopping, which causes traffic congestions. Suppliers contribute as well. 

trafic increase	number of retail units	rate
< 5%	66	26,50 %
5,00-9,99%	67	26,90 %
10-19,99 %	65	26,10 %
20-29.99 %	28	11,20 %
> 30%	23	9,20 %
total	249	100 %
average		11 %

Fig.2: The impact of retail construction on traffic, NESEHNUTÍ

• This chart provides a dividing of retails units by the precentage of traffic increase that appeared after the opening. The good perception might be than 1/4 of the cases registered an increase of 5% in maximum. On the other hand the same number of cases reported an increase of up to 20%, which might be a horour for infrastructure in case it was often congested already. Increased traffic is a burden not only for the air quality, but also worsens noise pollution (currently one of the worst problems of the Czech environment) and throttles pedestrian comfort and safety too.

3. At the expense of new construction investments the already rare greenery is diminishing in the city centre.

Land balance.jpg

Fig.3: The development of different types of land in Prague, ENVIS

• Eventhough politicians like to pride themselves with numbers of newly planted trees or hectares of newly set up urban greenery, this chart shows that in total the nature-like land (forest, water, agricultural and other areas) has more or less stagnated, whereas the built-up area has increased has risen significantly since 1990.
  
  

4. Construction of suburban SC occupies land even more, because roads and parking lots have to be built too. Traffic increases again. A research from EIA 2003-2009 shows that

•  72% of SC in the Czech Republic have been built in the suburbs
• Buildings take up 30% of the construction lot, roads and parking lots 45%
•  92% of parking sites have been designed as surface types, the rest as underground or inside
•  One half of SC have been built upon green fields, 10% of that land being the I. category agricultural soil intended to be built upon only in the most special cases.
  
•  46% of SC have had a negative effect on landscape (soil degradation, tree cutting, endangering ecological stability etc)

5. Small, former retailers are threatened and see SC as “unfair rivals”.
6. The design of new SC often omits local urban patterns and so interrupts the landscape or even the historical values. A study on this topic claims these factors:

• A trend of globally active artist creating international images of cities has emerged, buildings are designed to show global success as a part of the marketing strategy of their owners. This means that the architecture is becoming rather unified, local specific manners are omitted often and so one can observe the same designs worldwide.Example images, both from abroad and Prague are shown to prove the theory (pictures taken from Wikipedia Commons):
  

Rio De Janeiro, Brazil 

Toronto, Canada

Entertainment centre Černý Most, Prague, Czech republic

• New projects engage foreign investors, which reflects in their names (Anděl Bussiness Center), in the similarity of financing (the developer designs the exterior x the client chooses the interior composition) and in construction similarity - groundscraper model ilustrated by pictures from Wikipedia Commons:

Shopping centre Wakamatsu. Fukuoka, Japan
Galerie Butovice, Prague, Czech republic
Shopping centre Letňany, Prague, Czech republic

Centrum Chodov, Prague, Czech republic

• Especially suburban stores and SC express rationality and purpose of machines of mass consume and create an atmosphere of a placeless city

Conflict

Citizen NGOs were probably the first to start complaining about retail construction as it has affected the direct surrounding of their homes. A good example is an NGO called Healthy Life founded in 1998 in Prague 10 in order to protest against the construction of SC EDEN, located close to the Slavia football pitch. As their website claims, this SC was built despite the lack of necessary approvals. This NGO and other bodies appealed against the Prague 10 Council´s permission of the construction and even though the Supreme Court decided that the decision-making process had been wrong and must start again (and so the building permit is invalid), the investors started cutting trees and building engineering network. Later on there was not enough power on the side of opponents to stop the construction.
The most important arguments of Healthy Life were that the park, which lay on the allotment was the only green land in a wide area and that the construction of a SC would increase traffic and worsen air-pollution.

Pictures: Shopping centre EDEN (http://nno.ecn.cz/, www.nceden.cz/cz)

Another example is the Pankrác Plain with SC Arkády, an area where skyscrapers have been built and a big discussion rose about a threat of UNESCO punishment (because the skyscrapers might disrupt the city’s panorama). Again and NGO was founded and a dispute went on. Citizens always refer to the EIA process because it is their only legal possibility of joining the discussion. They hope the EIA results might cause fatal trouble to the investor, but all the cases show that this political/environmental instrument is not powerful enough to actually stop a whole project.

Arkady Pankrac.jpg

Picture: Project of SC Arkády, http://www.flickr.com/photos/rodenn/2491864114/

Media have supported every now and then the fragmented citizen efforts. Articles with for example these headlines were published: “A stamp is enough to turn a park into a parking” (Ekonom, 9.1.2003) or “Arkády Pankrác are opening, other shopping centres struggle to survive”(ČT 24, 14.11.2008) or “Shopping centres are mounting up despite the crisis” (Profit.cz, 27.4.2009).
Politicians, important actors in the conflict, are usually rather silent and not much explanations or quotations are findable. From the few comments in media I have assumed that their argumentation in favour of SC construction is of financial character, that is to say that the given city part wants to profit from selling allotments and claims SC to bring local importance and raise the economic value of the area.
As for the developers, their role is quite simple – they act as businessmen looking for profit and don’t pay much attention to other aspects.

Future development

The Czech retail structure has undergone a rapid evolution since 1989. The construction of new shops and commercial centres has been so massive that it gave an image of uncontrolled sprawl. Numbers say we have recently reached the European level as concerns the area standard (square metres of shops per inhabitant), which undermines my worries – probably there is no over-construction if it’s the same as in the rest of Europe! Nevertheless a more general question arises: is the European average a relevant measure for Prague? And moreover isn’t the current average a sign of overconsumption? These are question beyond the scope of this study case, but they definitely present a challenge for human lifestyle.
To conclude I will cite an up-to-date article from Lidové noviny (Public Newspapers, 11.1.2011). Its headline is “The dusk of huge shopping centres” and points out that in 2011 no SC will be opened (for the first time since 1990!) because the Czech Republic is saturated. This fact is a result of a market self-regulation rather than urban and political planning, but it seems that the construction boom of SC hopefully ended together with the first decade of the millennium and therefore the future development should be pretty much calmer and slower. Current trends turn back to the establishment of retail in existing buildings (eg.high streets) instead of constructing massive complexes on green fields.

Research question

During the development of my case study I have learned that the construction of shopping centres features more aspects than the ecological one I have been anxious about. Architects are concerned about the design, small traders feel discriminated, citizens complain about traffic congestions…
The most worrying matter however is the lack of effective communication in the process preceding the construction itself. Starting from insufficient cooperation between administrative organs through to the absence of specialist (architects, environmentalists) tuition and ending by limited possibilities of participation of citizens. Therefore a research question arises: Do the Czech laws concerning the decision making process posses enough control mechanisms to prevent corruption and assure equal possibilities of involvement of all affected sides?