Rwi report 2012[1]


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Rwi report 2012[1]

  2. 2. 2 Retail Week Interiors Report 2012 S pend any time with advertising folk and it won’t be too long before you come across the maxim that seeks to justify client expenditure by saying: “Imagine how things might have been if you hadn’t advertised.” Something of the kind may explain the fact that in spite of the regular news about retailer administrations, margins under pressure and falling turnover, new stores keep being built while old ones are refurbished. Do nothing and you risk going backwards. There is, of course, also the matter of a competitive environment. When trade is tough, the retailer that can provide the best reason for entering a store will be the one that succeeds in the face of adversity. And when the current recession finally comes to an end – and it will – those that have taken care of their store portfolios during the bad times will be best placed to prosper when the money flows. All of which means that far from being a period in which retrenchment and cost cutting have been the hallmarks of the store design and fit-out sector, there has been a relatively buoyant supply of new projects. Retailers may not have opened as many stores as in the heady days of the space race, but store refurbishments and the rolling out of initiatives piloted in trial stores have continued apace. The ultimate winners in this will be shoppers. Stores will look sharper and be fitted out to a higher specification as designers and shopfitters respond to retailer pressure and put in overtime to ensure they maintain the loyalty of their retail clients. There has undoubtedly been a shakeout in retailing during 2012 with weaker players going to the wall and this is mirrored across the fit-out sector. Yet there is still much to be done and UK retailing, store design and shopfitting remain dynamic arenas in which to operate. In addition to providing readers with the information they need, we hope this report engenders a sense of optimism. John Ryan, Stores Editor, Retail Week Editor’sForeword when the current recession finally comes to an end – and it will – those that have taken care of their store portfolios during the bad times will be best placed to prosper when the money flows
  3. 3. Retail Week Interiors Report 2012 3 N ew Store Europe is thrilled to get involved in the Retail Week Interiors Report. We believe this comprehensive report will provide insight to the whole sector, for companies like us and retailers. This year the market is beginning to show signs of recovery. According to the Retail Week survey of retailers, 46% of the respondents are spending more on interiors compared with last year, while only 27% of retailers kept their spend the same. This is positive news for the sector, as over three quarters of businesses that feature in the shopfitters league table boosted sales on the year in 2011. The one note of caution that many in the industry have sounded is that despite increasing sales for many companies, margins are getting slimmer. In tough trading conditions for retailers, the importance of a well-designed and fitted-out store is more vital than ever, as Retail Week’s survey of shopfitters found that the majority of clients are spending the same or more on their store interiors per sq ft. In turn, retailers are expecting more from shopfitters. Exciting and emerging trends in store design such as click-and-collect and in-store screen technologies enable retailers to stay competitive and mean quality shopfitting remains relevant. New Store Europe lives and breathes store interiors and is happy to work with Retail Week to explore the retail market of today and the future. Abdul Basharat, UK Chief Executive, New Store Europe Partner’sForeword in association with in tough trading conditions for retailers, the importance of a well-designed and fitted-out store is more vital than ever
  4. 4. 4 Retail Week Interiors Report 2012 Retailers’ views on store design and refits – P5 Store design has proven its importance this year in the face of tough trading. According to our survey of retailers, 46% of respondents are spending more on interiors this year than last, while 27% spent the same. Retailers fall into two camps: those with diverse estates spending on select store refurbishments, and mass roll-out retailers investing in new formats. The end of the space race – P7 Though smaller stores are the order of the day for many chains, there are still a variety of specialist and discount retailers substantially increasing their footprints. Retail Week Knowledge Bank data shows that Hollister increased its store space by 93% and Poundworld increased its footprint by 45%. Service and its impact on space – P8 Specialist retailers are generating high sales in small spaces mostly with tailored service and alluring store design, while generalists and supermarkets are using their space for everything from hairdressing to financial services to maximise footfall and their yield per square foot. Designing for multichannel – P9 Online retailing is finally beginning to have a significant impact on stores as multichannel services resonate with shoppers. Tablets are altering the way consumers interact with store and staff. And click-and-collect and in-store ordering services are impacting the way new stores are designed and existing ones are remodelled. The most exciting new UK formats – P10 Retail Week stores editor John Ryan highlights five of the most exciting new UK formats of 2012, including the social store environment of HMV in Cambridge, Whole Foods Market in Piccadilly and the first multichannel-focused Wilkinson in Crawley. The shopfitters’ view – P12 Here we reveal the results of Retail Week’s annual shopfitters league table and survey. It was a good year for most in the table as three quarters of the companies featured increased revenues on the year before. ReportSummary
  5. 5. in association with Retail Week Interiors Report 2012 W hen the ink dries on 2012 as a year, it seems probable it will be acknowledged as a period in which the UK economy trod water at best. This state of affairs seems to be reflected in the first Retail Week survey of retailers’ intentions as regards store design and fit-out. The views expressed are the outcome of a survey carried out in August across a broad cross-section of retailers covering all sectors and seeking to uncover their opinions on stores, the current state of play with regards to store design and refit and their aspirations for the future. In spite of the respondents being a diverse group of retail businesses, there is an overriding sense of the short term, with retailers waiting to see what happens this quarter rather than next year. For this reason perhaps, 20% of those surveyed stated that budgets for store design and fit-out in 2013 would remain the same as this year, while 40% said they would indulge in “a little more” – exactly countered by the 40% that claimed they will do “less”. None of those taking part however said they would do “substantially more” or “a lot less” and, given the uncertainty that is shooting through retail at the moment, this should come as little surprise. Whatisinterestingisthatthenumberofretailersspendingmorepersquare footontheirstores’interiorsoutweighsthosespendingless(seepiechart). Theintuitivereactiontotoughtradingwouldbetocutbackonnon-essential spendingandthereareretailersthatwouldviewstoredesignandfit-outas partofthis.Yetitisameasureofthecentralpositionoccupiedbystore designthatthereareclearlyasubstantialproportionofretailersthatviewthe matterofgood-lookingandinvitingshopsascentraltotheirsuccess. Broadly, there are two major trends in UK store design and consequent fit-out. The first is to spend when required. Translated, this means retailers such as Marks & Spencer that have large estates will invest heavily in new stores and indeed in old stores that are being refitted. But as M&S has a widely varying property portfolio, with very large and relatively small stores, as well as central and some off-pitch locations, there are fairly wide disparities across the estate. Put another way, some retailers are prepared to spend on a location if there is a perception that a demonstrable return on investment will follow within a meaningful timeframe. This group should be contrasted with the mass roll-out retailers that have been creating new formats – 47% of respondents to our survey said the roll-out of a new format has been the main focus of their shopfitting activities during 2012. The objective in this case is to create a near-uniform in-store experience for shoppers irrespective of location; and this requires a store design to be modular and capable of being flexed to take account of vagaries in individual branch geography. It also accounts for the fact that nearly half of the survey respondents said store refurbishment was the principal driver of in-store investment. Storedesignandrefitin 2012–retailers’views pilot stores, in which new ways of working and selling are investigated, have been high on the agenda during 2012 Are you spending more per sq ft on your store interiors this year than last year? Over 50% more 10%-25% more 10%-25% less The same as 2011 Up to 10% more Up to 10% less 25%-50% more 13% 13% 13% 7% 27% 13% 13%
  6. 6. 6 Retail Week Interiors Report 2012 our table highlights how specialist retailers are the ones that have flexed their space the most Pilot stores, in which new ways of working and selling are investigated, have been high on the agenda during 2012. The general mood seems to be that stores do need to change in view of the online threat and that once the worth of a trial store format has been confirmed, then a rapid roll-out needs to follow. Clinton Cards is an instance of the process at work. Clintons emerged from administration in June having been bought by American Greetings subsidiary Lakeshore Lending. A redesign of the stores was immediately undertaken, both fascia and interior, and a new format was unveiled on London’s Cheapside in July. Since then, a limited roll-out has already been put in place as the recovery plan gathers momentum. Our table pinpointing the retailers that gained and lost the most space in percentage terms between 2010 and 2011 highlights how specialist retailers are the ones that have flexed their space the most. But whether the focus is on a select location or a more general roll-out, store design and its execution are currently about quick decision-making and fit-outs carried out with almost equal dispatch. Storedesignandrefitin2012–retailers’views(continued) Retail risers UK sales area (‘000 sq ft) Retail fallers UK sales area (‘000 sq ft) Year 2010 2011 Change(%) Hollister 75 145 93.3 Beale PLC 550 1,000 81.8 Carphone Warehouse Group PLC* 545 920 68.8 Bensons 520 825 58.7 Blue Inc 250 365 46 Poundworld 480 695 44.8 Cath Kidston 70 100 42.9 Go Outdoors 700 1,000 42.9 B&M Retail 2,500 3,525 41 Joules 32 45 40.6 Year 2010 2011 Change(%) Reid Furniture 390 210 -46.2 Bed Shed 210 120 -42.9 Uniqlo 132 117 -11.4 Jane Norman 285 255 -10.5 Jacques Vert Group 460 420 -8.7 Julian Graves 186 171 -8.1 Aurum Holdings** 205 190 -7.3 HMV*** 1,500 1,400 -6.7 Laura Ashley 886 833 -6 Coast Fashions 170 160 -5.9 *This rise was due to the opening of Best Buy in the UK, now closed **Mostly Goldsmiths stores ***Includes a limited number of Republic of Ireland stores Biggest space changes – estimated figures from Retail Week Knowledge Bank
  7. 7. in association with Retail Week Interiors Report 2012 S pace is one of the better indicators of the health, or otherwise, of a retailer. The rapid addition of space to a retail portfolio normally means a company is bullish about its prospects and can take up some of the empty space that occurs naturally in any market. While there has been an oversupply of retail space in many locations in the past four years, this is more an indication of the kind of retailers that are struggling, instead of an overall malaise. A quick glance at the risers and fallers, in terms of percentage change in estate size (see p6), reveals that niche and value-led retailers are among those leading the clamour for new space, while fashion and furniture retailers have demonstrated a marked propensity to shed square footage to the end of 2011. This is not surprising. Value-hunting shoppers have led to operators such as Poundworld and B&M Retail expanding by close to 45% and a little over 40% respectively. Equally, the teen obsession with the highly niche Hollister formula has put it at the top of the expansion table, nearly doubling its size against the previous year, although this is probably the fashion exception that proves the rule. More typically, Cath Kidston, which has increased its total footprint by 43%, is a retailer with relatively small outlets. Fit-out time and suitable site availability is therefore more likely to be a simpler matter than it would be for larger players. The same applies to the majority of those heading the table. The picture at the other end could hardly be more different. High street fashion players such as Coast, Arcadia Group – across its various fascias – and Laura Ashley, have all shed space as discretionary purchases decline. The biggest fallers are furniture retailers however, reflecting consumer resistance to buying big-ticket items, with the Steinhoff UK-owned Reid Furniture and Bed Shed estates being cut almost in half, as steps were taken by management to streamline the operations. Smaller, better and fewer might be the conclusion to be drawn from all of this about the current direction of travel. For multi-site retailers, there is little reason to suppose the situation will alter greatly during 2013. Smaller,fewerand better–theendof thespacerace 14.6%n Average vacancy rate for the UK 10.1%n London is the region with the lowest rate for the first half 20.1%n Northwest England is the region with the highest vacancy rate 7.7%n Salisbury is the best performing large town/city centre** 30.6%n Nottingham has the highest vacancy rate of large town/city centres** 8.1%n Retail parks have the lowest rate among types of centres 16.2%n The average rate for both high streets with large centres and shopping centres *Local Data Company figures, from its Too Many Shops report based on visits to 145,000 shops between January and June 2012 ** Town centres with 400-plus shops Vacancy Rates for first half of 2012*
  8. 8. 8 Retail Week Interiors Report 2012 Serviceanditsimpactonspace even the grocers are experimenting with using space for service offers. Tesco has teamed up with Regis to offer hair and beauty salons S mall really is beautiful in terms of product when the retail yield per sq ft in the UK is considered. Technology and jewellery retailers feature strongly in terms of their ability to sweat turnover and profit from limited space. Even in recessionary times, the right gizmo or bauble in the right environment can attract hordes of buyers and such items tend to be small. Indeed,suchsmall,high-valueitemsalsooftenrequireretailerstooffercomplementary services,andasanexamplebothDixonsRetailandHalfordsarecreatingmoreaspirational, service-ledinteriors.Serviceisincreasinglyimportantforconsideredpurchases,and especiallyforretailerswhoaretryingtocompetewiththeirstoreexperienceagainstthe wealthofproductinformationandadviceavailableonline.Dixons’new‘Black’formatis thereforeaprimeexampleofastoredesignedtoseduceshoppers. The ‘small product is beautiful’ mantra also accounts for the fact that supermarkets show a high yield per sq ft (£1164 per sq ft in 2011 for Morrisons) because the lifetime of a SKU on a large grocer’s shelf is short, with space used again and again. But even the grocers are experimenting with using space for service offers. Tesco has teamed up with Regis to offer hair and beauty salons in nine of its larger stores. And similarly Boots has set up a Champneys day spa within a store in Milton Keynes. The next wave of initiatives could be financial services – with Marks Spencer a prime example of a retailer introducing a banking concept to stores. And retailers of all kinds have followed the grocers in introducing cafes to their space. In fact, two of the stores profiled in our best of 2012 (see p10) have cafes. Entertainment- focused HMV and cyclewear brand Rapha are both using cafes as a way of attracting and keeping customers in their stores. Perhaps unsurprisingly, big-box, edge-of-town retailing offers poorer yields and a correspondingly pared-back experience, but the lower cost of space is the upside for retailers in this instance. The other point that is perhaps worth noting is that at between £300 and £750 per sq ft, department store yields are lower than might be expected. This is a reflection of the need for space to be part of the shopper payoff in luxury retail environments. Richer Sounds 6,160 Abercrombie Fitch 4,600 Apple 2,360 Carphone Warehouse Group 2,025 ScS 1,940 Kurt Geiger 1,450 Aurum Holdings* 1,315 Leslie Davis 1,300 Game Retail 1,200 Tesco 1,170 Top 10 sales densities – estimated figures from Retail Week Knowledge Bank Store UK sales per sq ft 2011 (£) *Mostly Goldsmiths stores
  9. 9. in association with Retail Week Interiors Report 2012 O ne of the more obvious changes to many retail interiors over the last 12 months has been the emergence of iPads. Retailers as diverse as Halfords, Oasis, DFS and even Liberty with its Westfield Stratford pop-up store, have all trialled formats in which tablets, and these are usually iPads, feature. Practically, this takes two forms. Halfords has put banks of tablets in its ‘lab’ stores in Nuneaton and Cheltenham, arranged on a table at the front of the store and providing in-store guidance for shoppers, as well as giving them access to the retailer’s ranges not stocked in these locations. DFS, by contrast, has opted to locate single tablets on the sides of pillars around its Tottenham Court Road pilot store – allowing customers to benefit from “pause points” around the floors. It is worth noting that DFS has also equipped its staff with tablets in this store, to help shoppers design their dream homes, if they don’t wish to use the unattended devices. The other multichannel element that has affected the way designers lay out new stores has been the arrival of click-and-collect and in-store ordering as part of the in-store proposition. This has been on the rise for some time, with retailers such as House of Fraser and Debenhams having made it a standard in-store element. And Marks Spencer has put in-store ordering points in prominent positions in its new Cheshire Oaks store. This is, of course, a relatively simple matter if new stores are being opened, as it merely involves including click-and-collect and order counters as part of the overall mix. Retro-fitting click-and-collect counters in older stores is more challenging, however. The state-of-the-art click-and-collect store at present is probably the new Wilko store in Crawley. Here, as elsewhere, a click-and-collect counter has been installed, but room has also been made for a space that permits collections to be made outside normal trading hours, while the store is being restocked. This implies more square footage for non-selling space, albeit the out-of-hours collection room in this instance is in a back-of- shop location. If this, and the increasing use of in-store screens of varying shapes and sizes, is indicative of the way things are set to go in-store, it would seem that multichannel will have a greater impact on space usage and store design during 2013 and 2014. Designingfor multichannel halfords has banks of TABLETS arranged on a table at the front of its ‘lab’ stores and dfs has opted to locate single TABLETS on the sides of pillars around its tottenham court road pilot store MS has in-store ordering points in its new Cheshire Oaks store
  10. 10. 10 Retail Week Interiors Report 2012 S uch was the outlook at the end of 2011, that the prospect of a slowdown in new store launches looked high, with severe repercussions for the shopfitting and store design sectors. With the bulk of the year now a matter of record, however, it would appear the doomsayers were wide of the mark as new formats and refurbished interiors have been appearing with regularity. This is almost certainly still the outcome of a tighter economic climate as retailers look for new ways of appealing to their customers to ensure they remain loyal. Three months hence, it seems likely that 2012 will be considered a vintage year for fresh retail thinking and design from one end of the market to the other, as players as diverse as Burberry and Wilkinson unveil new stores and reconfigure elements of their existing portfolios. 2012:avintage yearforstoredesign? new formats and interiors have been appearing with regularity as retailers look for new ways of appealing to their customers Rapha, soho, London 2012 has been the year of the bike in the UK, whether at the Olympics or the Tour de France. The idea of the bike shop as a place where like-minded individuals can meet and share experiences while enjoying a glass of Cabernet or an espresso is at the heart of cyclewear brand Rapha’s first UK store and has considerable resonance. Open since July, visitors to this shop can use the cafe, buy upscale cyclewear and watch the action from the latest road bike race on the several monitors around the perimeter. Already popular, it is symptomatic of a growing community-led trend in retail. Wilko, Crawley These have been tough times for value general merchandise retailer Wilkinson, which recently unveiled a 62.6% fall in profits for the year to January 27. The winds of change are sweeping through the organisation, however, as it looks for new ways to attract shoppers. The clearest evidence of this is in Crawley where the newly opened ‘Wilko’, the first branch to bear the abbreviated name, features an aspirational interior. As such, it is part of a trend that is seeing retailers seeking to reconcile contradictory impulses – offering more value while providing increasingly upscale interiors.
  11. 11. in association with Retail Week Interiors Report 2012 Whole Foods Market, Piccadilly, London After what has generally been considered an inauspicious start with its Kensington High Street behemoth, Whole Foods has right-sized its European format with this store just around the corner from Piccadilly. With its emphasis on quick, frequent top-up shops and to-go eating, the store chimes not only with its neighbourhood but also with its proposition as urban food provider. The use of hand-written signage and the efforts that have been made to tie this store in with the local demographic also point towards the increasing tendency by retailers to localise global offers, rather than indulging in mass, largely undifferentiated roll-outs. HMV, Cambridge The entertainment retailer may have been through the mill in 2012, but the new store in Cambridge points to a format that may contain a few green shoots as it seeks to reinvent itself in the face of the online onslaught. The 10,000 sq ft Fitzroy Street branch is located in a former department store and aims to be as much social drop-in point as entertainment retailer. A cafe offering cheap coffee and free Wi-Fi is a pull for passing shoppers, as is an enlarged technology presence. DVD and audio sales remain at the core of this shop, but HMV has provided additional reasons for dropping in. Tesco, Thetford Accused of being more shopper processing machine than retail experience and with falling market share, the UK’s largest supermarket has hit back on home territory with “warmed up” interiors aimed at regaining customer goodwill. The outcome has been stores such as the Thetford branch, which feature lower fresh produce units, greater use of wood cladding and enhanced beauty departments modelled on continental pharmacy interiors. Since the first store was unveiled in Hertford in the spring, a concerted roll-out has been undertaken. Also noteworthy is the move away from the large Extra format and a concentration on the more traditional supermarket.
  12. 12. 12 Retail Week Interiors Report 2012 UKShopfitting–sizematters several of the top-placed ‘shopfitters’ retain some form of manufacturing, but it might be closer to refer to most as retail shopfitting project managers I f there’s a fit-out job that needs doing, of any kind, then most UK shopfitters will tell you they are able to do it. More than two-thirds of those who responded to the Retail Week shopfitters survey this year – the research for the top shopfitters table was conducted by Retail Week in conjunction with the National Association of Shopfitters this summer – claimed they are a company capable of tackling all kinds of fit-out projects. To an extent this may be true, but this year, as in others, there are two distinct groups of companies claiming to be shopfitters and their ability to deal with all retail comers may depend on which type of operation they happen to be. On one side, there are those that fit shops, while on the other there are those that get others to do so. IntotheformercampgoconcernssuchasAEHadley ofPortsmouth, whichhashada positive12monthsinwhichnotonlyhasitsturnoverrisenbycloseto25%,butithasalso turneda£488,715lossintoa£188,000profit.Intheschemeofthingsthismaynotsound likeahugebusiness.Butthisisashopfitterwithaworkingfactory.Thismeansthosein needofbespokefixturescanturnto itwhenthetimecomestoequipanewstore –the capacityistheretoworkwiththeshopfittertocontrolcostsandcreatesomethingdifferent. This kind of enterprise used to be the UK shopfitting norm and retailers would have beaten a path to a shopfitter that manufactured metal units or perhaps had carpentry as a core skill, as a store design required. And more often than not the company that manufactured the units would be the same one that installed them into the new store. This is where Hadley has scored with its ongoing relationship with John Lewis. The second kind of shopfitter dates from the tail end of the 20th century and is perhaps typified by Styles Wood, which currently occupies fifth place in the league table. Visit the company’s headquarters in Altrincham and there is no sign of manufacturing, because there is none. Styles Wood is, in fact, a company that employs shopfitters with retail equipment manufacturing capacity on a project basis, subcontracting the work it receives from retailers as needed. This is pretty much the norm at the top of the table and has led to the top five positions being occupied by companies that tend to work with retailers direct, where those further down the table tend to do so on a third-party basis. Several of the top-placed ‘shopfitters’ do retain some form of manufacturing, but it might be closer to refer to most as retail shopfitting project managers, rather than shopfitters. Such niceties notwithstanding, this has been a good year for those that appear in the table, with three-quarters of them showing an increase in sales against last year. Does this, however, mean a general upturn in the shopfitting sector? The chart on p14 provides answers of a kind, but Dave Park, managing director of Romford-based Cumberland Construction, which lists Debenhams and Jo Malone among its clients, puts things succinctly: “Clients are getting more selective. I don’t actually think things have picked up – it’s just that they’re being more careful about who they use.” On this analysis, retailers are putting more work the way of fewer shopfitters and therefore those that appear in this year’s table are more likely than not to have benefited as they have track records. From a retailer’s perspective, putting your eggs in one reliable basket might actually be more productive than scattering the work across 54%n of shopfitter clients are spending the same this year per sq ft as 2011. 64%n of shopfitters do not undertake overseas projects for international clients 57%n of shopfitters’ work remains UK based retail week shopfitters survey
  13. 13. in association with Retail Week Interiors Report 2012 Name Year end Revenue latest financial year Revenue 2010 Profit 2011 Profit 2010 Company comments Overbury (Vivid Interiors merged into) Dec-11 £396m £336m £11.1m £11.3m Turnover is increasing, though margins are decreasing. ISG Jun-12 £300m £321m Whilst margins remain challenging, the industry is innovating and providing opportunities for forward-thinking providers. Wates Retail Dec-11 £141m £112m Styles Wood Dec-11 £101m £99.1m £1.82m £1.1m Simons Group Mar-11 £99.88m £174.58m -£2.24m -£379,000 S Dudley Sons Aug-11 £92.32m £65.3m £283,526 £914,496 Vinci Construction UK Dec-11 £90.2m £78m £1.2m £1.3m Morris Spottiswood Dec-11 £84.65m £84.68m £332,259 £309,523 We’ve retained profitability with nil debt and a strong cash position. ITAB UK Dec-11 £79.3m £64.9m £1.51m £600,000 Simpsons (York) Dec-11 £73.49m £59.75m £1.96m £1.44m Achieved continued growth and development through difficult trading conditions. Havelock Europa - Interiors Business Dec-11 £70.1m £69m -£1.31m -£1.65m Patton Nov-11 £56m £56m £593,000 £111,00 New Store Europe UK Dec-11 £55m £57m £2.8m £3.5m New Store Europe UK is part of a larger pan-European group with a revenue of €232m (£185m) (December 31, 2011). Alan Nuttall May-11 £48.24m £35.48m £653,000 (£1.33m) Profit increased in 2010 -11 after a sluggish few years. Powells Jun-11 £39.01m £28.22m £125,565 £60,980 It is an extremely competitive market and has been so for the past four years. AMS Group Dec-11 £32m £24.5m £1.6m £1.2m Ongoinggrowthinturnoverhascontinuedinto2012byafurther30%. Harvey Shopfitters Nov-11 £30.08m £23.69m £683,838 £899,903 We have picked up more market share from competitors going out of business or failing to deliver. Bridgford Interiors Dec-11 £28.82m £27.5m £240,047 £341,907 Deane Amos Apr-12 £26.29m £28m £472,661 £50,000 Barlows Dec-11 £23.81m £20.11m £218,923 £167,939 Portview Nov-11 £23.7m £23.7m £293,000 £17,000 Pleasing in light of market conditions. Idess Retail Sep-11 £21.89m (15 month accounts) £16.2m £54,000 £276,000 Although turnover increased, profitability was substantially down mainly due to tighter market prices and difficult trading conditions. McCue Fit-Out Nov-11 £21.03m £13.4m £414,116 £520,076 We are forecasting an increase in 2012 over 2011. Railston Dec-11 £20.5m £26.7m £550,000 £500,000 2010 was exceptionally good for sales, while 2011 was as expected and profitability increased. Barnwood Shopfitting Dec-11 £16.16m £16.22m £521,000 £501,274 Vizona Dec-11 £16m £8m £100,000 -£400,000 Hurst Stores Interiors Dec-11 £14.17m £13.19m -£556,000 -£732,000 Clements Retail Mar-11 £13.33m £6.51m £908,000 £328,000 Resultsweresatisfactoryinadifficulttradingenvironmentandreflect thepositive,controlledexpansionthecompanyisexperiencing. Newman Scott Oct-11 £11.85m £9.6m £141,108 £146,395 Birley Manufacturing Solutions Dec-11 £9.29m £7.7m £314,042 £323,215 Given the current climate, business growth of around 20% in revenue is considered exceptional. Quinn Interiors Dec-11 £9.05m £8.03m £161,187 £202,406 GT Morgan Dec-11 £8.3m £5.7m £6,400 £30,800 Schweitzer UK Jun-12 £8.25m £8.16m (2011) £412,500 (2012) £652,800 (2011) The figures exceeded our expectations considering the market and the challenging conditions out there. A E Hadley Mar-12 £8.05m £6.46m £188,030 -488,715 The Maxim Creative Group Dec-12 £7m e £4.4m £3.8m £400,000 Benbow Group Dec-11 £6.2m £5.2m £149,000 -£192,000 A major customer went into receivership in 2010. Bentleys Shopfitting Mar-11 £5.04m £7.11m -£303,542 -£27,258 A Edmonds Sep-11 £4.98m £3.77m £8,668 £303,018 Cumberland Construction Apr-12 £4.25m e £2.126 e (2011) £450,000 (2012) £423,000 (2011) Umdasch Dec-11 £3.97m £4.76m Umdasch is part of a larger pan-European group with a revenue of €209m (£167m). Datum Contracts International Mar-11 £3.58m £3.49m £4,688 £11,303 Applied Heritage Jul-12 £2m £900,000 £50,000 £30,000 The company has changed hands and is no longer treated as a ‘lifestyle’ business. e = estimate 2012 shopfitters league table
  14. 14. in association with 14 Retail Week Interiors Report 2012 almost all of the large euro-shopfitters are near-vertical operations with the capacity to make almost anything for any client in seemingly limitless quantities a number of fit-out merchants. The other point worth considering is the challenge of working overseas. UK designers have been seeing the proportion of their fees originating offshore rising year on year for the last decade. This might lead to the supposition that shopfitters would have done the same, as the two sectors tend to operate hand in hand. The reality, however, is that fewer than one in three UK shopfitters work with international retailers, though 43% tell us they are working on international projects for UK retailers. This contrasts strongly with mainland Europe where the cross-border activities of big players such as Schweitzer, Umdasch, New Store Europe and Vizona have a long history and all of them operate local UK operations through offices in this country. Almost all of the large Euro-shopfitters are near-vertical operations with the capacity to make almost anything for any client in seemingly limitless quantities – the challenge for the UK industry is substantial. Consolidation remains important and is the other element that characterises the UK shopfitting sector. Large framework agreements between retailers and shopfitters to fit-out substantial numbers of stores mean scale is increasingly a criterion of success and consolidation is an obvious way in which to quickly gain appropriate size. The shopfitting landscape in the UK is therefore undergoing rapid change – from a series of large cottage industries into big companies that may not actually make anything, but which have considerable traction with UK retailers. Whether they will manage to make the leap across the Channel, in the short or medium term, remains a matter for debate. But currently, this still looks a somewhat fragmented sector in which there are rather more shopfitters than there are shops waiting to be fitted. Substantially more More The same amount A little less 50 40 30 20 10 0 percentage(%) Will shopfitters pick up more projects in 2013 than this year? The shopfitters said: 3.50% 43% 50% 3.50%
  15. 15. Retail Week Interiors Report 2012 For store interiors, you can trust New Store Europe to succeed anywhere in Europe. With 850 passionate people in 11 European countries, we are the experts for retail design, construction management, project management, manufacturing, logistics and installation. And our eight state-of-the-art production facilities in Europe, as well as in China, give us complete flexibility. New Store Europe works with you strategically to fulfil our mission of increasing retailers’ shop profitability, whether it is a new concept store, pop-up or a roll out to the whole of Europe. To see how we can help you visit or call +44 (0)1279 406300
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