Relevance of zoning small to medium size (StMS) shops in contemporary English valuation surveying practice in Newcastle upon Tyne, England

PurposeIn English valuation practice, when valuing small to medium size (StMS) shops, rental analysis is undertaken using zoning based on the argument that shop fronts including window displays attract customers to shops and that most trading takes place in the internal frontage area making it the most valuable part of shops. Albeit zoning has been critiqued, it remains the preferred method of rental analysis. The paper aims to answer two research questions: are shop fronts including window displays the only factor that attracts customers to shops? And is the frontage space within shops the area most trading takes place?Design/methodology/approachThe exploratory qualitative research methodology was used, and primary data collected by observing 178 shops in selected five shopping areas. The observational data were complemented with the use of secondary data.FindingsThe study has shown that shop fronts are not the only factor attracting clientele to shops as there are other varied factors including location, availability of Internet and hoardings. There is no evidence to suggest most goods in shops are displayed at the frontage space that attract most customers to that area, thereby, making the area the most valuable part, which decreases backwards.Practical implicationsThese findings coupled with extant research evidence implies zoning can lead to under or over valuation of StMS shops (which is not good for retail real estate (RE) management or market), and turnover generated from shops is the overarching determinant of rental values in valuation.Originality/valueThis is the first time the very foundation/underpinning principles of zoning have been subjected to scrutiny in England.