PRSM 2014 Trends Report - (Page 20)

STAYING ON TOP OF BRICK AND MORTAR STORE APPEARANCE From design to construction to maintenance—the life-cycle encompassed at Z Gallerie TRENDING: BRICK AND MORTAR INNOVATIONS Whether you are constructing new stores from the ground up or renovating existing properties, be prepared for rising costs for signage, fixtures and heating, ventilation and air conditioning (HVAC). A recent report indicates only two outfitting costs that did not rise on average from 2012 were flooring and lighting. The most expensive costs when renovating the store continues to be display fixtures. On average retailers paid more than $9.00 per square foot in 2013 versus just over $8.00 in 2012. HVAC costs increased $0.80 per square foot on average. Ceiling costs, signage and interior lighting increased, but not substantially. per square foot. Although interior lighting didn’t change drastically from 2012 to 2013, supermarkets and convenience stores pay almost a dollar more per square foot than home centers, specialty apparel and big box stores. The type of store is especially important when comparing metrics. Specialty apparel stores paid on average $11.57 per square foot on display fixtures whereas home centers only paid $7.00 W hat’s the best model to design, construct and maintain brick and mortar retail stores that promotes brand awareness and gets customers through the doors to shop longer and buy more? According to Jane Sullivan, Construction Manager at Z Gallerie, the process begins with a solid strategy, good decision making, dedicated execution and a shared-goals approach from design to construction to facilities maintenance. Store Update Decision Making Overseeing all construction and facilities for the entire company, Sullivan is on the forefront of an FM trend to lead the execution against a very active stage in the company’s growth strategy. “We have already opened three new stores in 2013 and have two more new stores scheduled to open by the end of the year. Include one remodel in that mix and you get a very fast-paced environment,” Sullivan says of their current level of activity. Focusing on the remodel project, a number of factors are considered in making decisions on when it’s time for store renovations or remodeling. “Stores need to be updated for a variety of reasons, including age, lease requirements or general wear and tear. Our owners play a key role in the decision making process,” Sullivan says. “We view each store as a stage to present our products in the best setting for customers to envision these furnishings in their homes. We strive for a signature look, inside the walls, for customers who are typically between the ages of 20 and 50 years of age. Exteriors are done to compliment requirements and style of the local area, per se.” “If the staging isn’t perfect,” Sullivan says, “we need to evaluate where we missed 20 I PROFESSIONAL RETAIL STORE MAINTENANCE I www.prsm.com the mark. Whether it’s a general refresh or a complete rebuild, my goal is to always improve the stage. Sometimes the decision comes down to taking the right path for the company, our consumers and the environment.” Sullivan said the scope of any remodel is determined by multiple factors, but ultimately the final decision comes down to return on investment (ROI) and how well the changes support the goal for efficient maintenance. “Some stores are aging and may need a fixture update to stay relevant http://www.prsm.com

Table of Contents for the Digital Edition of PRSM 2014 Trends Report

EXECUTIVE SUMMARY
TECHNOLOGY
WASTE MANAGEMENT
VENDOR MANAGEMENT
SUSTAINABILITY
BRICK AND MORTAR INNOVATIONS
ADVERTISERS’ INDEX

PRSM 2014 Trends Report

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