Professional Retail Store - September/October 2011 - (Page 10)
executive director’s column
Industry Trends to Watch
n an industry that changes so rapidly, it’s sometimes difﬁcult to identify trends that impact retail facilities in time to do anything about them. Trends can be very abstract or sporadic events that we sometimes dismiss as just happenstance. But, when we are able to predict or identify these trends early on, we’re able to make different decisions or at the least plan contingencies to address them. At the least, we gain some satisfaction in knowing that what may be impacting our business is also being experienced by others. The events trending in the retail facilities industry are being fueled today by our sluggish economy, a depressed commercial real estate market, and the pressure of Wall Street on retailers for better sales performance to name a few. As these factors change, we’ll see these trends displaced by new ones. But for now, here are my top 10 trends impacting retail facilities management based upon my dialogue with PRSM members and others in the industry. Retailers are taking advantage of the glut of available property in the retail market to trade up. Garrick Brown, national research director at Terranomics/ChainLinks, says retailers are trading up for better locations and quality space for the dollar or lower rent or CAM. According to one PRSM member, this challenges the facilities team to retroﬁt, track existing warranties and evaluate existing infrastructure rather than inheriting new properties with warranties intact. Vendors are gaining new business due to inspections, PMs and capital replacements of these new sites. Mergers and acquisitions among service providers are shaking up the retail facilities industry. Retailers are taking second looks at who they’re actually doing business with these days and watching closely for changes in service levels, contract requirements and the overall beneﬁts to these newly merged companies. Other service providers are watchful for new business opportunities in relationships that go sour. Retailers and vendors are leveraging technology to streamline operations and processes. Accessible tools and apps useable via iPads and smartphones are great resources for FM professionals on the move. Greater demand is being placed on work order management and energy management systems to reduce operating costs and increase efﬁciencies. Retailers are starting to pay the price for delaying major repairs. Plus, some retailers are wasting money in major repair areas, such as HVAC and environmental hazards because routine service calls could have identiﬁed a repair need before it turned into a major problem and dollars.
PATRICIA DAMERON, Executive Director PRSM Association
Retailers are taking second looks at who they’re actually doing business with these days and watching closely for changes in service levels, contract requirements and the overall beneﬁts to these newly merged companies.
U.S. retailers are expanding into international markets and international retailers are setting up shop in the U.S. and Canada. Everyone is scrambling to learn about business practices and to ﬁnd qualiﬁed service providers in these new markets. New retailers entering the U.S. and Canadian markets provide new business opportunities for service providers. Retailers are resizing or mixing up their footprints. Big box retailers, especially, are refocusing on smaller boxes to penetrate new urban markets, such as the launch of Walmart Express. Others are adopting unique pop-up stores or the store-within-store concepts. For example, Kroger is expanding its product line to include newly resurrected The Bombay Company. Consequently, existing performance metrics and maintenance schedules are being revamped to ﬁt the footprint. No relief is in sight for the pressure on facilities teams to reduce costs. For the foreseeable future, FM professionals will experience immense pressures to reduce their operating costs and achieve better performance metrics. Consequently, vendors are
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10 I Professional Retail Store Maintenance • www.prsm.com
Table of Contents for the Digital Edition of Professional Retail Store - September/October 2011
EXECUTIVE DIRECTOR’S COLUMN
GREEN SOLUTIONS: GREEN CERTIFICATION FOR RETAILERS
MAINTENANCE: HOW TO IMPROVE YOUR VERTICAL TRANSPORTATION SYSTEMS
MANAGEMENT: “I DON’T HAVE TIME” IS A LIE!
LOST IN TRANSLATION: MANAGING RETAIL FACILITIES IN EUROPE
REPAIR OR REPLACE? CONSIDERING THE OPTIONS IN AIR CONDITIONING REFRIGERANTS
ENERGY EFFICIENCY COST SAVINGS
PREPARE ABOVE AND BEYOND WITH PS-PREP
Professional Retail Store - September/October 2011