Subsidiary (geography)

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In geography , real estate management and urban planning, branching refers to the displacement of owner-managed retail businesses by branches of larger trading companies . The percentage of branches is called the degree of branching .

Typical local businesses are being abandoned because their owners can no longer pay the rents required. They are replaced by branches of nationally or internationally operating large companies, which can make profits despite high rents due to their market power , more rational business processes and further developed business concepts.

A high level of chain stores can lead to homogeneous, similar product ranges in the respective business centers. This homogeneity is often rated negatively.

However, since chain stores often increase pedestrian frequency and thus often keep the existing purchasing power on site like a magnet, not only the chain store itself but also the local dealers, the gastronomy and ultimately the entire location benefits from this in many places.

Even the external appearance of the respective city center can be positively influenced. Elaborate renovation measures or building renovations often only take place when property owners sign a long-term rental agreement with an economically stable branch and financing is thus guaranteed over a long period of time.

Decisive for the attractiveness of a shopping location is therefore less often the number of chain stores, but rather the combination of the various industries and the quality of the provider. Only too large a one-sided offer leads to monotonous city centers.

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  1. Seminar for Sociological Geography: The city must be permanently staged ( Memento of the original from March 14, 2007 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. , accessed December 30, 2006 @1@ 2Template: Webachiv / IABot / www.ssg.geo.uni-muenchen.de
  2. ^ "Chain stores conquer the shopping miles of cities" , Die Welt , May 13, 2011

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