Abstract: Introduction: Location selection is vital in all types of businesses, including retail, wholesale, service, and manufacturing. This is particularly true for retail businesses, where location often plays a determining role in the success or failure of commercial activities. Agglomeration economies, where stores physically cluster together to gain mutual benefits, are common in retail. In Kazeroon City, many retail activities, especially clothing stores, have traditionally been located in the city center, within the Bazaar or nearby shopping centers. However, in recent years, a noticeable shift has occurred, with some stores opting for street locations instead. This research seeks to explore the reasons behind this trend of avoiding retail agglomeration and the criteria for selecting locations on the street. 2. Theoretical Framework Retail agglomeration occurs when similar or complementary retailers cluster in or near a location, creating a pull factor for both retailers and customers. This concept is a foundational element in economic studies and urban planning. Retail patterns can be categorized hierarchically, from central business districts to isolated store clusters, and by their form into planned or unplanned, linear, or isolated clusters. Three types of retail agglomerations are commonly distinguished: evolved such as central business districts, created such as shopping malls, and hybrid like retail parks. Furthermore, these agglomerations can be classified as planned or unplanned, depending on their level of management and organization. Various theories such as Central Place Theory, the Spatial Interaction Model, Bid Rent Theory, and the Principle of Minimum Differentiation provide insight into how retailers distribute themselves spatially within cities and why they form agglomerations. 3. Methodology This research employs a qualitative approach to collect and analyze data. Kazeroon, a city in Iran’s Fars Province, has over 4,877 active economic activities, 395 of which are clothing stores. Of these, 330 are located within the Bazaar or shopping centers (i.e., retail agglomerations), while 65 are located on the street. Data was gathered through face-to-face interviews with 24 street-based clothing vendors, and content was analyzed using MaxQDA software. Spatial analysis was conducted using GIS Pro software to map the spatial distribution and configuration of stores. 4. Results and Discussion The primary reasons for retailers choosing street locations over the Bazaar included factors such as business hours, accessibility, parking availability, social networks, store atmosphere, the size of the shop, COVID-19 impacts, ownership, costs, and the unavailability of empty shops within the Bazaar. These factors can be divided into two categories: nonspatial factors e.g., business hours, social networks, ownership and spatial factors e.g., accessibility, parking availability, store size). Interviews revealed that retailers were attracted to street locations because of convenient customer parking, high visibility, active streets, and proximity to major urban centers. These factors, as well as store size and ownership arrangements, were commonly cited as critical considerations in selecting a location. The deductive approach based on theoretical foundations and past research revealed that parking availability, visibility, active street life, and proximity to major attractions were frequently mentioned by interviewees. Proximity to complementary stores, rental costs, and proximity to competitors were also noted but were not as prominent as in previous studies. The findings suggest that while proximity to complementary stores and cost considerations are significant in other research, in the case of Kazeroon, these factors were less influential. The unique conditions of the city, such as the lack of adequate parking near the Bazaar, shifted the emphasis towards street locations, where customer access is easier due to marginal parking availability. Active street life, visibility, and proximity to major land uses remain consistent with findings from other studies. Notably, the influence of the COVID-19 pandemic, the growing role of social networks, and the atmospheric quality of street stores emerged as differentiating factors in this study, contrasting with findings from other research. Ownership arrangements and contract types also played a significant role in location decisions, providing an additional layer of complexity not often addressed in traditional retail studies. Moreover, it was discovered that some clothing stores are moving away from the city center and forming new retail clusters on the outskirts, creating new agglomerations. 5. Conclusion The findings of this research underscore that store ownership is a significant factor in avoiding central city locations, as owning property eliminates the need to pay rent, reducing the perceived benefits of agglomeration. Additionally, the rise of social networks as a customer acquisition tool has decreased the reliance on physical proximity to the Bazaar. Limited business hours within the Bazaar, particularly closing on holidays and early evening closures, along with the confined atmosphere of shopping malls, have prompted retailers to establish street-based locations. Among the most critical factors influencing this decision is the ease of customer access, particularly due to the availability of marginal parking. Factors such as active street life, high visibility, and proximity to significant land uses are consistent with previous studies on retail location selection. However, the influence of proximity to competitors and complementary stores, which are frequently emphasized in the literature, were less significant in this study. The research also highlights that certain retailers, far from the city center, are forming new agglomerations in less central areas, indicating the emergence of new retail patterns in Kazeroon. This research contributes to the understanding of retail location dynamics, particularly in smaller cities like Kazeroon. It suggests that retailers prioritize factors that facilitate customer convenience, such as parking and accessibility, over traditional agglomeration benefits. The findings have implications for urban planners and policymakers, particularly in addressing the infrastructural needs of non-central retail areas. [ABSTRACT FROM AUTHOR]
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