The impact of out-of-town shopping centres on town-centre retailers and employment: The case of the Region of Murcia

•The impact of out-of-town shopping centres in south-east Spain (Mediterranean cities) is lower than that observed in cities in the United Kingdom and the _United States.•The greater the distance from the shopping centre, the lesser the impact.•Competition based on size - GLA - in line with the theory of economies of agglomeration, more specifically, internal economies of scale.•In response to the negative effects of unspecialised out-of-town shopping centres, good practices of private-public collaboration can be observed which combine lucrative interests with the general interests of society.

In recent decades, in many countries and regions there has been much controversy regarding the effects of out-of-town shopping centres on retail activity and employment in the towns their catchment areas. In the Region of Murcia, the last decade, a cluster of out-of-town shopping centres has appeared and their impact on these socioeconomic variables constitutes the focus of this article. To carry out the research, an econometric model has been developed. The results reveal a negative impact on retail activity, around 12% in the case of the nearest and most affected town. Furthermore, the findings show a negative net balance of employment in the whole of the catchment area calling into question the desirability of these centres unless they provide a complementary supply in the area.