The Influence of Complex Shopping Mall Expansion on Traditional Markets and Consumption: A Case Study of Su-won

Purpose: In recent years, complex shopping malls have transformed from simple retail venues into multifunctional cultural hubs offering dining, leisure, recreation, and rest. However, the emergence of such large-scale retail facilities often leads to the decline or disappearance of surrounding small-scale commercial districts, reshaping local retail ecosystems. This study aims to empirically investigate the impact of a newly opened complex shopping mall in Su-won, South Korea, on nearby traditional markets and small businesses, with a focus on understanding their coexistence and the mall’s role in reshaping consumption flows. Research design, data, and methodology: This study utilizes credit card transaction data to capture changes in consumer behavior before and after the mall’s opening. The analysis focuses on changes in spending across different business types and distance bands, allowing for a spatially explicit comparison of consumption patterns. Special attention was paid to variations by industry sector (e.g., restaurants, supermarkets, fashion) and to shifts in consumer mobility between the mall and nearby commercial zones. Results: First, the analysis of the impact of the complex shopping mall on traditional markets revealed that while the direct effect on traditional markets was generally positive, overall sales declined. This suggests that the decline may be attributed more to external factors such as the expansion of online shopping, population movement, and reduced foot traffic, rather than the mall’s presence itself. The difference in customer base and product offerings between traditional markets and the mall appears to result in a complementary rather than competitive relationship. Second, the industry- and distance-based analysis demonstrated varying effects depending on sector. In the restaurant industry, the mall had a positive direct impact, especially for businesses located closer to the mall, indicating a mutually beneficial relationship. In the apparel, footwear, and fashion sector, although some negative effects were observed at distances of 4–5 km, the overall impact was slightly positive but relatively minor (1–2%), and overall sales declined due to broader challenges in the offline retail environment. In contrast, the grocery and supermarket sector experienced notable negative effects within a 3 km radius, likely due to direct competition with a warehouse-style discount store located inside the mall. However, the impact weakened with distance. Third, the analysis of consumer behavior by residential district within Suwon showed that in Jangan-gu, where the mall is located, spending on retail, food, and mobility increased, driven in part by inflows from residents of other districts, which helped sustain the area’s commercial competitiveness. In contrast, Gwonseon-gu, Yeongtong-gu, and Paldal-gu experienced consumption declines and outward consumer leakage. While Suwon residents’ external spending on retail decreased, spending on food and transportation in other regions showed a slight increase. Conclusions: Overall, the study finds that the direct impact of complex shopping malls on nearby traditional markets and small businesses is generally positive. This is attributed to differences in customer base and consumption purposes, suggesting a complementary rather than competitive relationship between the two. Furthermore, the mall contributes to maintaining the vitality of local commercial districts by enhancing their competitiveness. The significance of this study lies in its approach: rather than simply comparing changes in sales, it identifies the underlying causes of sales fluctuations by categorizing customer types and empirically examines the mall’s functional role within the local retail ecosystem. The study challenges binary views of retail competition and underscores the need for urban commerce policies that promote cooperative coexistence between large malls and traditional commercial districts. It also provides practical implications for redesigning retail regulations and spatial planning based on empirical evidence.