DDi - October 2011 - (Page 32)

32 | State of the Retail Design Industry 2011 State of the Retail Design Industry 2011 State of the Retail State of the Retail Design Industry DDI’s third-annual survey finds retailers and designers are feeling good about the future…finally By Alison Embrey Medina, Executive Editor 2011 SOI Charts: 17-21 large-chain retailers (i.e. Old Navy’s 400-store DI’s third-annual State of the Retail remodel plan and Belk’s major brand and store Design Industry survey asks the quespresence rollout). New store builds are still tions that everyone in our industry is growing as well, but more by the handful than talking about on the sidelines, but what we are How concerned are you that you will the bucket-ful. Design firms tell us work is often too cautious to say out loud. This has been lose your job in the While luxury con- coming in, projects are flowing and hiring is an odd year for retail already. next year? commencing. All good news for those still looksumers have rebounded and found their wallets 6.4% Very concerned ing for job placement. again, Walmart is still struggling to meet its sameSomewhat concerned Here’ store sales goals. The flat unemployment rate and 22.7% s where DDI’s third-annual State of the Retail Design Industry43.3% comes in. On the survey ever-pressingconcerned threat of a double-dip recession has Not too following pages, you will see an accurate repkept the consumer at bay, still only spending in Not at cautious about 27.7% resentation of exactly where the mindset of our spurts and all concerned the country’s economic industry currently lies. stability. “What still seems to be a huge challenge for retailers that are not in the luxury goods level, especially those that colleague and lowerThe recovery Have you or aserve the middle-been laid o income families, is their uncertainty about their Overall, companies are feeling better about their from a job in the last year? jobs, and balancing their spending between gas, current economic situation, with 60. 9 percent refood and absolute necessities,” one survey responding3.5% their situation is “Good,” and a full that Yes, I was laid o spondent said. “The jobless rate is still extremely quarter of respondents (25.4 percent) respondYes, one those families, and no end high and alarming inor more colleagues have been laid o“Excellent/Very Good.” 29.8%compares with ing This is in the near future.” or more colleagues have been laid o 57 percent saying “Good” last year, and only 17.8 2.1% Yes, myself and one In the design world, word on the street is percent believing their business was “Excellent or No that renovations are picking up dramatically for Very Good.” Perhaps a greater bellwether, in 2011 D What is your company’s current economic situation? Economic Status Excellent/Very Good Good Barely Acceptable Poor 3.6% 9.4% 25.4% 60.9% Very Poor 0.7% less than a tenth of respondents (9.4 percent) listed “Barely Acceptable” to describe their business, versus a full 22.4 percent last year. It appears retailers and design firms feel we have begun to dig ourselves out of the trenches. More than half (51.5 percent) of retail respondents said their company plans to increase capital spending in the next 12 months, a good sign for the health of the industry. Another 43.2 percent reported no significant changes in capital spending (meaning they are spending the same as the previous 12 months), and only 5.3 percent reported plans to decrease capital spending in the next year. Fifty-eight percent of the retailers in our survey said that they had opened 1-25 new stores in 2011, with another 10.9 percent saying they have opened 26-50 new stores already this year. And 31.8 percent plan to open more new stores in 2012 than in 2011, with another 40.3 percent opening the same number of new stores next year. Renovations for 2011 landed most heavily in 64.5% the 1-25 range, with a majority 63.1 percent of retailers saying that’s where their renovation dollars landed. Expect that number to grow in the coming year, as 32.8 percent of respondents said they plan to renovate more stores in 2012, with another 38.7 percent saying they plan to renovate the same amount of stores as in 2011. In terms of which channels of retail were still suffering the most, a quarter of respondents (25 percent) agreed that department stores were still at the top of the list, followed by softlines | October 2011

Table of Contents for the Digital Edition of DDi - October 2011

DDi - October 2011

https://www.nxtbook.com/nxtbooks/designretail/201402
https://www.nxtbook.com/nxtbooks/nielsen/designretail_201401
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20131112
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201310
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201309
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201308
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201307
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201306
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20130405
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20130203
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201301
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20121112
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201210
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201209
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201208
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https://www.nxtbook.com/nxtbooks/nielsen/ddi_201206
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20120405
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20120203
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201201
https://www.nxtbook.com/nxtbooks/nielsen/ddi_20111112
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201110
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201110v2
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201109_v2
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201109
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201108_v2
https://www.nxtbook.com/nxtbooks/nielsen/ddi_201108
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https://www.nxtbook.com/nxtbooks/nielsen/ddi_200907
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200906
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200905
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200904
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200903
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200902
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200901
https://www.nxtbook.com/nxtbooks/nielsen/ddi_200812
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