DDi - November/December 2009 - (Page 22)

22 | Survey Showing signs of light DDI’s State of the Retail Design Industry survey shows retailers and designers are preparing for the future by innovating in the present By Alison Embrey Medina, Executive Editor he retail industry, without a doubt, has been stamped severely by the economic downturn and resulting consumer-spending withdrawal. The retail design sector has been scathed, with retail organizations cutting back on capital spending and depleting their visual and store planning staffs. But despite the mud we have been drug through over the last year, our industry is still pushing onward, embracing innovation and experimentation, even as budgets and resources diminish. But DDI wouldn’t be able to say this deﬁnitively without accurate data, which is why we launched the 2009 State of the Retail Design Industry Survey. We wanted to capture an accurate portrayal of exactly where the mindset and attitude of our industry’s players were. Throughout the next three pages, you’ll catch a glimpse of some of the survey’s results, in addition to some commentary from prominent industry professionals reacting to those measurables. T Isn’t it odd that it takes a dramatic downturn in business to begin innovating to ﬁnd new business solutions? —Ignaz Gorischek, Neiman Marcus The change ahead The survey proved that, while times may be tough now, there is a glimmer of hope that relief is on the way. While 52 percent of respondents believe America’s retail economy is still “stagnating in a recession,” 31 percent believe the economy is “growing slowly” and only 12 percent believe we are “in a depression.” We all are hoping for an expedient economic recovery—but the question is when? When asked “Where do you view the economic recovery occurring for your business?” 30 percent of respondents said they were “already seeing signs of light.” Another 21 percent said recovery was coming in ﬁrst quarter 2010, 27 percent responded with fourth quarter 2010, 17 percent said 2011, and 5 percent don’t see recovery coming until 2012 or beyond. “Holiday sales in the U.S. market and the degree of proﬁttaking from the stock market will be major factors in the direction and pace of our recovery,” says Patrick Rodmell, president and CEO, Watt International Inc. While 39 percent of respondents said their companies decreased design staff head count in 2009, only 8 percent said they were planning to decrease head count in 2010. In fact, 19 percent said their organizations are planning to increase 19.1% stafﬁng levels in 2010—a good sign for those still looking for placement. Pay cuts may have been the way many organizations stayed aﬂoat in the last year, with 42 percent of respondents receiving a reduction in salary this year. Thirteen percent reported receiving more than a 20 percent cut in pay, with another 16 percent receiving a pay cut of more than 10 percent. Regarding company stability, businesses seem to be faring for the better heading into 2010. When asked “What is your company’s current economic situation?” half of respondents replied “Good,” with another 12 percent responding “Excellent/Very Good.” Another 28 percent said their company’s economic situation was “Barely Acceptable,” and only 9 percent responded “Poor” or “Very Poor.” Job importance on the rise Despite the industry compacting over the last year, respondents felt that the importance of the retail designer’s role has risen. Nearly half (47 percent) of respondents said that the design/store planning/visual component of the retail industry is “much more important” than it was ﬁve years ago. Another 30 percent claim this component is “somewhat more important.” And looking onward ﬁve years down the line, more than half (56 percent) of respondents feel the average retail designer’s job importance will rise. “Top executives in retail organizations may be more open and eager to consider new strategies as a direct result of the challenging sales environment,” says Judy Bell, group manager merchandise presentation, Target Corp. “This opens the door for visual merchandisers and store designers to offer their best ideas. And if they are successful, I think opportunities will multiply in the future.” The post-recession marketplace gives the opportunity for creativity and trying new things, which may beneﬁt the retail design industry in the long run. “Store designers and merchandisers will be called upon to provide solutions to lagging sales, via means other than a percentage-off When you think about America's retail economy today, do you think it is Growing rapidly Growing slowly Stagnating in a recession In a depression No opinion 3.8% 12.1% 1.0% 31.0% 52.1% | November/December 2009

Table of Contents for the Digital Edition of DDi - November/December 2009

DDi - November/December 2009
Contents
From the Editor
Newsworthy
Quick Tips
Greentailing
Editor’s Choice
State of the Retail Design Industry Survey
Channel Focus: Sportswear
Tommy Hilfiger
JCPenney
Saks Fifth Avenue
New York Retail Map
Retail Design Collective
Showroom Map
Products
Right Light
In-Store Technology
Product Spotlight
Advertisers
Calendar
Classifieds
Shopping with Paco

DDi - November/December 2009