How has COVID-19 impacted the economic resilience of retail clusters?: Examining the difference between neighborhood-level and district-level retail clusters.

ABSTRACT

The spread of COVID-19 greatly restricted physical and economic activities in global cities due to growing fears of infection and lockdown policies. Accordingly, the transfer of shopping activities from traditional markets to e-commerce has accelerated. Urban retail has substantially declined by competing with these disrupting factors, but resilience capabilities are known to vary by scale and regional characteristics. This study identifies which types of retail clusters were more resilient to the economic shock caused by the pandemic. This research focuses on the changes in online and in-store sales and how retailers recovered differently at the neighborhood and district levels in 2019 and 2020. This research compares the resilience of two types of retail clusters by calculating the loss of resilience and online adaptivity. The findings suggest that neighborhood-level retail areas were more resilient and bounced back in sales at a faster rate than district-level retail areas during the pandemic. These findings suggest that retail clusters are more resilient if they have steady populations and low-rent loads and can accommodate online shopping. The study contributes theoretical insights into how sales have changed and how e-commerce has increased the resilience of retail clusters throughout the pandemic by examining in-store and online sales.