A vibrant, interconnected neighborhood radiating from a central home, symbolizing local economic activity.

Is Your Neighborhood a Shopping Desert? How Local Amenities Shape Your Spending Habits

Reese Marlowe in Business & Economy December 2025 • 4 min read.

"New research reveals the surprising ways the density of nearby stores and services influences what—and where—we buy, with lessons for urban planning and your wallet."

Ever wonder why you're more likely to grab a coffee from the café down the street rather than trek across town? Or why some neighborhoods seem to buzz with shoppers while others feel like retail deserts? A fascinating new study analyzing urban consumer behavior in Seoul, South Korea, sheds light on these very questions, revealing the powerful influence of local amenities on our spending habits.

The research, which dives deep into credit card data from 2018 to 2023, uncovers a clear preference for shopping close to home. But it goes beyond simple convenience, exploring how the 'relatedness density' of amenities—essentially, how many different types of stores and services are clustered together—shapes our purchasing decisions.

Whether you're a city planner, a small business owner, or simply curious about the forces that drive your local economy, this research offers valuable insights. Let's explore how the density of amenities influences your buying patterns, focusing on multi-purpose shopping preferences.

The Power of Proximity: Why Local Shopping Matters

A vibrant, interconnected neighborhood radiating from a central home, symbolizing local economic activity.

The study pinpoints a significant trend: Seoul residents overwhelmingly prefer shopping within a 2-kilometer radius of their homes. This isn't just about laziness; the 'relatedness density' of amenities in that zone has a strong influence on whether people choose to spend their money there. The more diverse and interconnected the local shopping scene, the more likely residents are to support it.

Think about it: a neighborhood with a grocery store, a pharmacy, a dry cleaner, and a coffee shop all within walking distance offers the opportunity to run multiple errands in a single trip. This convenience, the researchers argue, is a major driver of local spending. It's not just about buying what you need; it's about the ease and efficiency of getting it all done in one go.

Convenience is King: Shoppers prioritize locations where they can accomplish multiple tasks in one trip.
Local Businesses Thrive: A high density of related amenities fosters a supportive environment for local businesses.
Urban Planning Matters: The design of neighborhoods directly impacts consumer behavior and economic activity.

This preference for local shopping isn't just a matter of convenience; it's also a reflection of economic resilience. The study found that even during the disruptions of the COVID-19 pandemic, local shopping preferences remained strong, demonstrating the enduring importance of amenity-relatedness in urban consumer behavior. Even when broader economic forces threatened to disrupt established patterns, people continued to value the ability to shop close to home.

The Future of Local: What This Means for You

The Seoul study offers valuable lessons for anyone interested in understanding and shaping the future of local economies. For city planners, it highlights the importance of creating mixed-use neighborhoods that prioritize walkability and a diverse range of amenities. For small business owners, it underscores the value of clustering with complementary businesses to attract more customers. And for consumers, it's a reminder that where we choose to spend our money has a direct impact on the vitality of our communities. By supporting local businesses and advocating for thoughtful urban planning, we can all help create thriving, resilient neighborhoods that meet our needs and enhance our quality of life.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2407.20587,

Title: Close To Home: Analyzing Urban Consumer Behavior And Consumption Space In Seoul

Subject: econ.gn q-fin.ec

Authors: Hyoji Choi, Frank Neffke, Donghyeon Yu, Bogang Jun

Published: 30-07-2024

Everything You Need To Know

What is 'relatedness density' and how does it affect my shopping habits?

The term 'relatedness density' refers to the variety and interconnectedness of stores and services clustered together in a particular area. The research from Seoul indicates that a higher 'relatedness density'—meaning more diverse and complementary amenities in close proximity—significantly influences consumer spending. This means that if your neighborhood has a mix of essential services like grocery stores, pharmacies, and coffee shops, you're more likely to spend your money there, because it enables you to accomplish multiple errands in a single trip, enhancing convenience and efficiency.

How far from home do people typically prefer to shop, according to the Seoul study?

The study revealed that residents of Seoul overwhelmingly prefer to shop within a 2-kilometer radius of their homes. This preference is not merely about convenience, but strongly linked to the 'relatedness density' of amenities within that zone. The presence of a diverse array of stores and services within this range greatly influences the likelihood of residents spending their money locally.

How did the COVID-19 pandemic impact the preference for local shopping, based on the research?

During the COVID-19 pandemic, the preference for local shopping remained strong in Seoul. This demonstrates that the value placed on amenity-relatedness and the ability to shop close to home is enduring, even when broader economic forces disrupt established consumer patterns. This suggests that the convenience and efficiency of local shopping, facilitated by the 'relatedness density' of amenities, are highly valued by consumers, providing resilience to local businesses.

What are the implications of this research for city planners and urban design?

For city planners, the study highlights the importance of creating mixed-use neighborhoods that prioritize walkability and a diverse range of amenities. The research emphasizes how urban design directly impacts consumer behavior and economic activity. By fostering environments with a high 'relatedness density' – such as combining a grocery store, pharmacy, dry cleaner, and coffee shop – city planners can encourage local spending and create more vibrant, resilient communities. This approach supports local businesses and enhances the overall quality of life for residents.

How can small business owners leverage the findings of this study to improve their business?

The research underscores the value of small business owners clustering with complementary businesses to attract more customers. By strategically locating near businesses that offer related services, such as a coffee shop next to a bookstore, businesses can capitalize on the 'relatedness density' effect. This clustering creates a more attractive shopping environment, encourages customers to visit multiple establishments in a single trip, and fosters a supportive ecosystem that benefits all local businesses involved.