The advantages of agglomeration can be seen in most large urban communities. For example, automobile dealers now tend to locate in places called “auto rows or auto malls.” By doing this, they benefit because customers interesting in buying a car can easily travel from one dealer to another and are therefore able to look at many cars in a short time. Dealers, who locate in less accessible places, will not attract as many potential buyers as those who locate near one another in an “auto row.”
Retail malls exist for similar reasons. Retailers find it beneficial to locate in a place where hundreds, or even thousands, of customers pass by their shops. If they are situated in isolated places, their exposure to potential customers will not be as great. Additionally, malls allow retail stores to share in the upkeep, and security costs of the facility. Furthermore, stores located in a large shopping mall do not need to be concerned with maintaining parking or restroom facilities. Thus, agglomeration pays.