Evaluation
The validity of the central place theory may vary with local factors, such as climate, topography, history of development, technological improvement and personal preference of consumers and suppliers.
Economic status of consumers in an area is also important. Consumers of higher economic status tend to be more mobile and therefore bypass centers providing only lower order goods. The application of central place theory must be tempered by an awareness of such factors when planning shopping center space location.
Purchasing power and density affect the spacing of centers and hierarchical arrangements. Sufficient densities will allow, for example, a grocery store, a lower order function, to survive in an isolated location.
Factors shaping the extent of market areas:
- Land use: industrial areas can provide little in the way of a consuming population
- Poor accessibility: this can limit the extent of a center's market area
- Competition: this limits the extent of market areas in all directions
- Technology: high mobility afforded by the automobile allows overlapping of market areas
Market area studies provide another technique for using central place theory as a retail location planning tool. The hierarchy of shopping centers has been widely used in the planning of "new towns". In this new town, the hierarchy of business centers is evident. One main shopping center provides mostly durable goods (higher order); district and local shopping centers supply, increasingly, convenience (lower order) goods. These centers provided for in the new town plan are not free from outside competition. The impacts of surrounding existing centers on the new town centers cannot be ignored.
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