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Chapter 10 Page 2 of 25 such as Wal-Mart, with perhaps 200,000 plus square feet were to be constructed one-half mile away, soon, the auto traffic in the older mall lessened. The Target or Kmart with only 45,000 sq. feet closed and surrendered. The anchor store then remained vacant and the decline of the mall accelerated. Throughout the United States, formerly prosperous malls or strip centers have given up. The areas have become desolate and look abandoned and the customers depart for the newest supercenters and their parking areas. . The Potential Negative Impact Considering the Multiplier Effect on a Regional Economy Previously mentioned and described in this study is the new phenomena of the "Power Center" which has been gaining momentum in the mid 1990's. The Power Centers have been described as "Big Box" farms where there are a half-dozen or more mega-stores and smaller superstores set around vast (upwards of 1200 spaces) parking lots with total retailing space nearing one-half million square feet. The effect of the centers multiplies that of the single mega- or super-store. These stores and centers draw customers from a radius of 10 - to 15- miles in major metropolitan areas and even larger areas in rural ones. By increasing their drawing range, these mega-retail discount chains are also increasing their negative impact on "Main Street" retailers as well as the smaller retail discount chains that during the past year have been plummeting into bankruptcy or dissolution. In California, we have begun to see another approach. Wal-Mart, who has received opposition in some communities to building new stmctures has begun to renovate empty mall department stores or attach their new buildings to an existing mall. They are easily able to accomplish this since the community infrastructure is already in place - parking, roadways, water, and sewers. Their economic argument is that they will enhance the traffic to the mall; hence increasing overall business and the local GDP. . But how is this constructive result possible when Wal-Mart provides direct competition to at least 50% of the small businesses already in the mall. Look at the example of the Huntington Beach mall (stores listed below in Table 15) where there are 31 relatively small stores in addition to three largec. ones (anchors). . ISpencer Gifts IGreat Earth IONC ISee's Candy IDiamond Jewelers IKayBee Toys IRegis Hairstyle IHallmark IAthletic Press IShoe Witz ISizes Unlimited Table 15 Huntington Beach Mall IIWet Seal IIMusicland IILechters IISunglass Hut liMon Ami IIClaires I ,IBurlington Coat Factory IIHudson Goodman Jewele~ IILearhers Cloth IIKinney Shoes I IIWalden Books IIGTE-Phones I IILane Bryant IIRadio Shack I IIWard's Department StorellSilver Lace I IIAshley Jewelers IIIntrigue I IIPost Office IIExpress Emporium I IIGeneral Store IIMervyn's Department Storel http://www.shilsreport.org/chap 1 O.html 10/6/99