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SUBJECTS › PLANNING › Regulation of Large Retail Establishments (Big Box Retail)
Reviewed 01/09

Regulation of Large Retail Establishments (Big Box Retail)

Contents

Introduction

Large retail establishments, often termed "big box retail" or "superstores," have become a familiar fixture on the American landscape. Wal-Mart, Costco, Toys "R" Us, representing different categories of these large-scale establishments, have become household names. Initially, these large-scale stores gravitated toward suburban sites that offered large tracts of low-cost, readily-available land, with access to a larger urban market area. Over the last decade, these large-scale stores have made impressive in-roads into rural and small town communities. A new breed of "big box" stores is rediscovering the market potential of central locations in much larger cities. In short, no community is immune from the potential effects these of large-scale retail businesses.

In many cases, these large-scale retail establishments have been welcomed with open arms or some lesser degree of acceptance. In some communities they have been viewed as an antidote to a declining economy, promising new sales tax revenue and jobs. Expansive, yet full parking lots and ringing cash registers are evidence that customers have embraced these stores for their wide selection of goods at low prices, often not previously available in a community. They have met stiff opposition in other communities, which fear negative economic impacts on existing downtown business, traffic or other impacts of sprawl development, or a lack of connection with established community character. Cities that have escaped entry of these establishments within city limits may still experience significant impacts from stores in neighboring communities. In fact, such large-scale retail will bring a complex mixture of benefits and impacts.

These impacts typically were not anticipated in zoning and development regulations developed prior to the meteoric rise of such large-scale retail. As a result, many communities are re-working policies and development regulations to provide better guidance in making decisions.

This web page is intended to provide a variety of examples, regulatory approaches, articles and studies to help with decisions about whether such large-scale retail establishments are appropriate in the community, and if so, where and under what circumstances they are appropriate. Materials include suggestions or examples of design guidelines, development standards, size limits (applied jurisdiction-wide or within certain types of commercial centers) and other requirements.

If you have information to share, or are aware of other sites we should link to, please contact Sue Enger, Planning Consultant, or call (206) 625-1300.

Definitions

On these pages, we use the more neutral term "large retail establishments" in place of the perhaps more pejorative term "big box retail" frequently used in the media and many articles on the subject. Various publications have identified a number of sub-categories of large-scale retail development including discount department stores, "category killers, outlet stores, and warehouse clubs. The following definitions are not offered as suitable legal definitions, but are provided to convey a general understanding of various types of large-scale retail establishments offering discount pricing. Some of the codes and guidelines referenced on these pages include definitions tailored to local regulatory needs. These may be helpful in considering definitions for inclusion in codes and guidelines.

The following definitions are excerpted and adapted from Maryland, "'Big-Box' Retail Development," Adobe Acrobat Document Managing Maryland's Growth: Models and Guidelines, Maryland Department of Planning, October 2001.

  • Big-box retail facilities are large, industrial-style buildings or stores with footprints that generally range from 20,000 square feet to 200,000 square feet. While most big-boxes operate as a single-story structure, they typically have a three-story mass that stands more than 30 feet tall. The definition, or perhaps the description of a big-box store can be better understood through its product category. For example, book retailers like Barnes & Noble generally range from 25,000 square feet to 50,000 square feet, whereas in the general merchandise category, big-boxes like Wal-Mart range from 80,000 square feet to 130,000 square feet. (These typically no-frill stores seek to attract customers with the low prices and/or large selection possible with large floor space and high volume sales).

  • Discount department stores, ranging from 80,000 square feet to 130,000 square feet, offer a wide variety of merchandise including automotive parts and services, housewares, home furnishings, apparel and beauty aids. This group includes retailers such as Target, Wal-Mart and Kmart.

  • Category killers, ranging from 20,000 square feet to 120,000 square feet, offer a large selection of merchandise and low prices in a particular type of product category. This group includes retailers such as Circuit City, Office Depot, Sports Authority, Lowe's, Home Depot and Toys "R" Us. (As the name implies, they tend to overwhelm or "kill" smaller, or less focused competitors)

  • Outlet stores, ranging from 20,000 square feet to 80,000 square feet, are typically the discount arms of major department stores such as Nordstrom Rack and J.C. Penny Outlet. In addition, manufacturers such as Nike, Bass Shoes and Burlington Coat Factory have retail outlet stores.

  • Warehouse clubs, ranging from 104,000 square feet to 170,000 square feet, offer a variety of goods, in bulk, at wholesale prices. However, warehouse clubs provide a limited number of product items (5,000 or less). This group includes retailers such as Costco Wholesale, Pace, Sam's Club and BJ's Wholesale Club. (These clubs often charge their customers an annual membership fee).

  • The term "power center" is often used to describe groupings of the various forms of big-box retailers. Power centers generally contain 250,000 square feet to 1 million square feet of retail space. Retailers that locate in power centers may be freestanding, structurally attached to another retailer, or a combination of both types. The trade area from which most power centers draw consumers ranges from five miles to ten miles.

  • The term "regional center" is often used to describe a small grouping of big-box retailers, typically developments of two or more anchor stores. Regional centers range from 400,000 square feet to 800,000 square feet. They are generally enclosed with an inward arrangement of stores connected by a walkway. The trade area from which most regional centers draw consumers ranges from five miles to fifteen miles.

Articles

Design Guidelines

Code Examples

Size Limits

Addressing Vacant Big Box Buildings

Economic Impacts of Large Retail Establishments

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