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Impact of pedestrianization and traffic calming on retailing

Germany has implemented many ambitious pedestrianization and traffic-calming schemes over the last 20 years, and has carried out quite large-scale research studies on their effect on retailing. The schemes implemented in the UK and the research carried out on them have been more modest. However, they broadly show the same picture. There is generally a positive effect on retailing, with shops inside pedestrian areas being more successful than those outside. Part of the increased turnover is transferred to the landlord, in the form of higher market rents. More extensive schemes have more substantial positive effects. However, there can be a reduction in turnover during a transition period of 1-2 years, and the effects can be unfavourable for fringe shops just outside the developed area, unless the scheme is carefully designed. (Carmen Hass-Klau)