Abstract
What should retailers do to ensure that people buy from them and not from a competitor? How should bricks and mortar retailers respond to the intensifying challenges from online sellers? What role can store design play in ensuring that a retailer is high in the pecking order?
This report addresses several themes, looking at the role of good store design in helping retailers build sustainable, profitable businesses.
Table of Contents
- Issues in the Market
- Definitions
- Abbreviations
- Market in Brief
- Plenty of store design activity
- Shopfit expenditure -- growth has slowed
- Shopfit costs vary considerably
- Adding value
- Upwardly mobile designs
- Doing things better and doing better things
- Avoiding ' clone Britain'
- Consumer confidence, win-win for designers
- Consumer spending and retail sales
- How consumers shop
- Age and gender divide
- Older consumers favour supermarkets that sell mainly food
- Grocery shopping can be a chore
- Figure 1: Food shopper types, March 2007
- Clothes shoppers want a quick experience
- Figure 2: Clothing shopper types, March 2007
- Key themes emerging in store design
- Figure 3: key design themes within retail stores
- Future for store design
- Industry Insight
- Key Points
- Intense competition among designers
- Fragmentation among designers
- Retailer attitudes to design process
- Are retailers dumbing down?
- More shopfitting sourced abroad
- Are retailers still using design agencies?
- Demands on design
- The pace of change is increasing
- Shopfitting is just part of the equation
- Emerging design themes
- ...flexibility
- ...white box is still thriving
- ...large space stores tend to stick to the white box
- ...hot spots enhance mood
- ... where colour is more prominent
- Designing the ambience
- ...mixing finishes
- Use of technology at the point-of-sale
- How the Internet is affecting attitudes to store design
- Internet has become quite personal
- Changing expectations of time
- Retailers encourage lingering
- Pampering in retailing
- Retailers need to build desire
- Being seen to be green
- The ' prove it' trend
- Meaningful missions
- Value retailers putting on the style
- Design essential to add value
- Designing for the local catchment
- Risk-averse retailers looking similar
- Is solution retailing growing?
- The key lies in empathy
- Store design businesses will do more work abroad
- More competition will arrive from abroad
- Flagship outlets often have a different agenda
- Designing the changing room
- Men are from Mars...
- Creating distractions
- Shopping centre design
- Outlook for store design
- Internal Market Environment
- Key Points:
- Elements of store design
- Hard design
- Flooring -- a costly element in the shopfit
- Flooring must stand up to wear and tear
- Mixed floor surfaces a common theme
- Innovations in flooring materials
- Key themes:
- Screens at the point-of-sale lower costs
- Other hard design features
- Permanent and semi-permanent displays and features
- Props and displays -- inspiration and hot spots
- Non permanent point of purchase -- more joined up thinking
- Point of purchase materials -- encouraging impulse
- Estimates of the scale of the point of purchase market
- Atmospherics -- can be zoned
- The wrong music is a lot worse than silence
- ... music should be appropriate
- ... digital improves delivery
- ... central control ensures standards
- Suppliers of music
- Lighting -- trend to raise lighting levels
- Aroma -- emerging use of scents
- Multimedia explosion
- In-store advertising
- Broader Market Environment
- Key Points:
- The economy
- PDI and consumer expenditure
- Figure 4: PDI and consumer expenditure, at current and constant 2002 prices, 2002-12
- Employment
- Figure 5: UK workforce and employment, 2002-2012
- Inflation and interest rates
- Figure 6: UK inflation rates, all goods UK, 2002-12
- Fast growth in number of UK households
- Figure 7: Number of UK households, by size of household, 2002, 2007 and 2012
- Age of population
- Figure 8: Population by age group, 2002, 2007 and 2012
- Property and planning issues
- The planning regime
- ... concentrating on redevelopment of town centres
- ... more refusals for out-of-town applications
- ... but food stores adding to non-food space
- ... new rules will favour refurbishment
- Mezzanine floor boom
- Outlook for major new schemes
- In the pipeline
- Several new completions in 2006 and 2007
- Flurry of future large developments
- Market in Context
- Key points:
- Retail sales
- Figure 9: All retail sales, at current and constant 2002 prices, 2002-12
- Food retailing gaining market share
- Figure 10: sales through food retailers and non-food retailers, at current prices 2002-07
- Retail concentration continues
- Figure 11: Concentration of retailing, 2002 and 2006, plus estimates for 2007
- The online shopping channel
- So why bother going out to shop?
- Internet competition provides boost
- Strengths and Weaknesses
- Strengths
- Weaknesses
- Market Size
- Key Points
- Estimating market size
- Investing in refits
- The role of design agencies
- Market size for shop fitting
- Figure 12: The UK market for shopfitting, 2002-12
- Market trends
- Lifespans are decreasing
- Wide range of costs
- Full or partial refits
- The Consumer -- Where They Prefer Spending Time
- Key consumer findings:
- Where consumers prefer to spend time
- Clothing stores are tops
- Food shops -- not just a chore
- Superstores not as popular...
- Rejecting ' clone Britain'
- Large surface stores appear popular
- Furniture shops low in the ranking
- Specialised shops also low in the ratings
- Figure 13: Stores where consumers prefer spending time, March 2007
- Gender differences
- Figure 14: Top five stores where men like to spend time, March 2007
- Figure 15: Top five stores where women like to spend time, March 2007
- Enjoyment varies by age group
- Figure 16: Top five stores where people like to spend time, by age band, March 2007
- Personal adornment stores where consumers prefer spending time
- Figure 17: Personal adornment stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- It' s a girl thing
- How the men respond
- Flexibility and fast change
- How supermarkets with and without non-foods compare
- Figure 18: Supermarkets and independent stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Women responsible for food shopping
- Families like larger non-food ranges in supermarkets
- Local indies favoured by older consumers
- Leisure Goods Shoppers
- Figure 19: Leisure goods stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Where men like to visit
- Older music afficionados
- Mobiles
- Household goods and electronics
- Figure 20: DIY, garden, electonics and furniture stores where consumers prefer spending time, by gender, age and socio-economic group, March 2007
- Garden centres capture 45+ shoppers
- Men like their tools!
- Strong male bias to electronics stores
- Where They Prefer Spending Time -- Detailed Consumer Demographics
- Figure 21: Personal adornment stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
- Figure 22: Supermarkets and independent stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
- Figure 23: Leisure goods stores where consumers prefer spending time, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
- Figure 24: Stores where consumers prefer spending time, diy, garden, electronics and furniture, by special groups, working status, region, ACORN categories, commercial TV viewing, media usage and supermarket used, March 2007
- The Consumer -- Attitudes to Food Shopping
- Key points:
- A need for status quo
- Figure 25: Attitudes to food shopping, March 2007
- How attitudes to food shopping vary
- Figure 26: How consumers describe food shopping, by gender, age and socio-economic group, March 2007
- Shopping -- a necessity?
- Figure 27: How consumers describe food shopping, by gender, age and socio-economic group, March 2007
- Wanted: less frequent changes!
- Sample this!
- Food store requirements
- Figure 28: Desired improvements to food stores, by gender, age and socio-economic group, March 2007
- Figure 29: Desired improvements to food stores, by gender, age and socio-economic group, March 2007
- Customer typologies within food
- Figure 30: Food shopper types, March 2007
- Group 1: Aisle Browsers
- Who are the Aisle Browsers?
- Marketing message:
- Group 2: A Necessity
- Who are the A Necessity shoppers?
- Marketing message:
- Group 3: Get in, get out
- Who are the Get in, get out?
- Marketing message:
- Group 4: Enjoyable pastime
- Who are the Enjoyable pastime food shoppers?
- Marketing message:
- Attitudes to Food Shopping -- Detailed Consumer Demographics
- Figure 31: How consumers describe food shopping, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
- Figure 32: How consumers describe food shopping, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
- Figure 33: Desired improvements to food stores, by special groups, working status, region, ACORN categories, media usage, commercial TV viewing and supermarket used, March 2007
- Figure 34: Desired improvements to food stores, by special groups, working status, region, media usage, commercial TV viewing and supermarket used, March 2007
- Figure 35: Food shopper typologies, by gender, age, socio-economic group, marital status, lifestage, working status, tenure, ACORN categories, region, commercial TV viewing, newspaper readership and supermarket used, March 2007
- Figure 36: Where food shopper typologies enjoy spending time, March 2007
- Figure 37: Improvements wanted by customer typologies for food shops, March 2007
- Retail Competitor Analysis
- Major suppliers to the sector -- Industry associations
- The Design Business Association (DBA)
- POPAI
- The National Association of Shop Fitters (NAS)
- Retail design companies
- Sector overview
- Figure 51: Design Week consultancy survey, UK top 20 interior design specialists, 2006
- Figure 52: Design Week consultancy survey, UK top 5 interior design specialists, 2006
- The market has been tough
- A fragmented industry
- Very varied results
- Some agencies struggling
- Outlook
- Astound
- Checkland Kindleysides
- Conran and Partners
- Corporate Edge
- Dalziel and Pow
- Dinn Associates (closed in 2007)
- HMKM (Hosker, Moore, Kent and Melia)
- The Imagination Group
- Loewy Group
- Lumsden Design Partnership
- Michael Sheridan (Sheridan & Co)
- The Nest
- 20/20 Design
- Shopfitters
- Sector overview
- Figure 53: Leading UK shopfitting companies, turnover, 2005-06
- Long-term contracts -- the key to the future
- Creative competition
- Outlook
- David McLean Contractors
- ISG Dean and Bowes
- S. Dudley & Sons
- Withey Contracts
- Havelock Europa
- Hutton Construction
- ISG Interior Exterior
- Morris & Spottiswood
- Styles & Wood
- Point-of-purchase specialists
- Coutts Retail Communications
- Artform International
- PPE
- Point-of-purchase consultancies
- New Store Designs and Refurbishments
- Key findings
- Clothing and jewellery
- Adams, Bluewater (Designer: Inovus Path)
- George at Asda, Southend (Designer: Checkland Kindleysides)
- Beaverbrooks, Doncaster (Designer: Colin Williams)
- COS, Regent Street (H&M) (Designer: Pentagram)
- Gap (Designer: Dalziel & Pow)
- Jaeger, Regent Street flagship (Designer: in-house)
- Kurt Geiger, Liverpool' s Met Quarter (Designer: Found Associates)
- Primark, Oxford Street (Designer: Dalziel & Pow)
- Slaters, Manchester (Designer: Dalziel & Pow)
- Thomas Pink, Sloane Street (Designer: Four IV)
- Woolworths Kids Store, Bedford (Designer: 20/20)
- Electricals/technology retailers
- The Carphone Warehouse, Oxford Street (Designer: in-house)
- Virgin Mobile, Essex (Designer: Judge Gill and Start Creative)
- Sony Ericsson, Kensington High Street (Designer: Checkland Kindleysides)
- House and home
- Habitat (Designer: in-house)
- MFI (branding by Circus)
- Heals, Tottenham Court Road (Designer: in-house)
- B&Q, Birmingham (Designer: in-house)
- Magnet (Designer: in-house)
- Zara Home, Regent Street (Designer: in-house)
- Pets At Home, Romford (Designer: 20/20)
- Food stores
- Aldi, Manchester (Designer: in-house)
- Tesco' s ' greenest store' , Wick (Designer: in-house and Astound)
- Department Stores
- Debenhams (Designer: in-house)
- John Lewis, Oxford Street (Designer: in-house)
- Fortnum & Mason, Piccadilly (Designer: Kinnersley Kent)
- Health and beauty
- Superdrug, Uxbridge (Designer: in-house)
- Books and recorded music
- Waterstone' s, Manchester (Designer: Lewis & Hickey, London)
- Virgin, Manchester (Designer: Checkland Kindleysides)
- Appendix
- Research Methodology
- Consumer research
- ACORN







































