Traffic calming as an opportunity for the retail sector

Study debunks prejudices and shows economic potential of more attractive streets in city centers

Bike rental station with colorful rental bikes in a city center; Copyright: Unsplash/Mahdi Samadzad

Paris, Barcelona, Bogota, Oslo – some major cities are opting for car-free or low-car inner cities.
© Unsplash/Mahdi Samadzad

08.05.2025

Do traffic-calmed city centers harm the retail trade? A recent analysis by the German Institute of Urban Affairs (Difu) disproves this assumption. The study shows: Measures such as the rededication of parking spaces in favor of bicycle and pedestrian traffic not only improve the quality of life in cities, but also strengthen brick-and-mortar retail.

Measures to keep cars out of certain parts of the city center are discussed time and again. Retail associations often warn against such plans, as retailers fear that traffic-calmed or car-free city centers will result in a loss of sales. They assume that customers will find it more difficult or even impossible to get to their stores by car. They also see problems with the delivery of goods and daily delivery traffic. In the long term, many fear a migration of customers to shopping centers with better accessibility or to online retail.

Scientific findings on the connection between traffic calming and retail sales

The German Institute of Urban Affairs (Difu) has now conducted a study on this topic, with empirical data and practical reports from Germany and abroad at the heart of the analysis. The result is clear: there is no causal link between traffic calming and economic disadvantages for the retail trade. Rather, attractive public spaces lead to a higher quality of stay, increase visitor frequency and thus ensure more sales – even if people who travel by bike or on foot spend less per purchase than those who drive. They visit stores more often, which has a positive effect overall.

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Strengthen infrastructure, attract customers

People walking on a streetcar street in a city center; Copyright: Unsplash/Joshua J. Cotten

A key success factor is good accessibility – even without a car. Investments in local public transport as well as safe and comfortable cycle paths and footpaths increase the attractiveness of locations. In addition, well thought-out parking space management can increase customer access by displacing long-term parkers and making more efficient use of scarce space.

The international perspective underpins the results. For example, traffic calming in San Francisco's Mission District led to higher spending by residents and an increase in turnover for around 40 percent of retailers. In London's Kensington Street, not only did property prices increase by 13 percent following design improvements, but retailers also benefited significantly from better pedestrian accessibility.

Win-win situation for the environment and retailers

In view of increasing traffic congestion and its negative impact on the environment and quality of life, it may make sense to redesign the streetscape. In the long term, a city can benefit from alternative mobility concepts to the car. In addition, in the course of climate change, the sealing of surfaces should be reduced and supplemented by planting.

Retailers should see this development not as a threat, but as an opportunity, and actively participate in the planning and implementation of appropriate measures in order to benefit from the positive effects on customer frequency and sales.

Sources: Deutsches Institut für Urbanistik press release, The World Resources Institute commentary

Portrait of Sven Reck, freelancer for the EuroShop editorial team, in front of a red background; copyright: Sven Reck

Author: Sven Reck | EuroShop.mag

Sven Reck has been supporting EuroShop.mag as a freelancer for several years. Among other things, he creates photo series on store design, writes articles on best practices in retail marketing and use cases on new technologies in the retail sector. He also enters the content into the CMS and ensures user-friendly presentation and search engine optimization.