Chain Store Age - July 2009

apparel stores continue to remodel, with 46.2% reporting no change in plans.

Costs: Construction costs were divided into two separate categories: building-shell construction costs for freestanding locations, and tenant fit-out costs for stores in malls and other types of centers.

In the freestanding category, construction costs (includes con-

66,029 gross sq. ft. for existing units, and specialty apparel stores, where new stores averaged 6,154 sq. ft. versus 8,654 sq. ft. for existing stores.

Outfitting costs: For all retailers surveyed, store-outfitting costs were down across the board when compared with last year’s results. Display fixtures retained their longstanding status as the most expensive category, averaging $7.65 per sq. ft. for all retailers surveyed.

Flooring was the second most costly store-outfitting category, averaging $2.78 per sq. ft. for all retailers surveyed. It was followed by roofing, at $2.68 per sq. ft., and interior lighting, at $2.54 per sq. ft.

HVAC averaged $1.63 per sq. ft., and ceilings averaged $1.50 per sq. ft. The least expensive cate-

gories were exterior signage, at $1.18 per sq. ft.; interior signage, at $0.66 per sq. ft.; and floor maintenance, $0.36 per sq. ft.

For a breakdown of store-outfitting costs by individual retail category, and for more information on the types of systems used, see chainstoreage.com.

Energy: Energy costs averaged $1.94 per sq. ft. for all chains surveyed. The supermarket sector, which has been at the forefront of energy conservation in the past several years, came in below average, at $1.75.

Energy expenditures were highest for specialty stores, at $2.25 per sq. ft., followed by big-box stores at $2.11, and home centers at $1.87. Costs were lowest for convenience stores, at $1.55.

Green: The economic downturn has not diminished retailers’ interest in building green. For all chains surveyed, 77.4%

Average Cost Per Square Foot of Store-Outfitting Systems (Mean Dollars)

Total Convenience Supermarket Home Center Specialty Apparel Big Box 2009 2009 2009 2009 2009 2009*

Flooring $2.78 $4.56 $1.89 $1.98 $3.90 $2.16

Ceilings $1.50 $1.94 $1.30 $1.70 $1.63 $1.16

Displayfixtures $7.65 $4.50 $9.13 $5.86 $10.62 $6.75

Interiorlighting $2.54 $3.20 $1.92 $1.78 $3.55 $2.36

Interiorsignage $0.66 $1.07 $0.72 $0.49 $0.72 $0.45

Roofing $2.68 $4.13 $2.93 $2.67 $1.79 $2.13

Floormaintenance$0.36 $0.60 $0.59 $0.20 $0.28 $0.24

HVAC $1.63 $1.91 $1.74 $1.37 $1.68 $1.51

Exteriorsignage $1.18 $2.27 $0.61 $0.91 $1.61 $0.89

*Includes big-box stores as well as those previously classified as department stores. Source: Leo J. Shapiro & Associates

crete, structural steel, structural masonry, roof and HVAC but excludes interior fit-out) averaged $40.77 per sq. ft. for all retailers surveyed, compared with $42.63 per sq. ft. in last year’s survey.

Specialty apparel retailers had the highest building costs, at $55.00 per sq. ft., followed by convenience stores at $51.14 per sq. ft.

Big-box stores averaged $40.00 per sq. ft., and home centers averaged $32.00 per sq. ft. Supermarkets had the lowest costs, at $31.00 per sq. ft.

Costs for tenant fit-out work (includes dry wall, ceiling, floor, wall finishes and exterior construction but not fixture package) averaged $40.59 per sq. ft. for all retailers surveyed, compared with $39.27 per sq. ft. last year. Convenience stores had the highest costs, $55.00 per sq. ft. followed by specialty apparel, at

Energy Expenditures

Total 2009

Convenience 2009

Supermarket
2009

Home Center 2009

Specialty Apparel 2009

Big Box 2009*

Average energy cost per square foot

(mean dollars) $1.94 $1.55

Average percent of total sales spent on energy costs 0.79% 0.82% *Includes big-box stores as well as those previously classified as department stores.

$1.75

$1.87

$2.25

$2.11

0.88%

0.78% 0.83% 0.68% Source: Chain Store Age Research / Leo J. Shapiro & Associates

$43.59, and big-box stores, which averaged $40.96 per sq. ft.

Supermarkets averaged $39.00 per sq. ft. Home centers enjoyed the lowest costs, at $13.50 per sq. ft.

Store size: The size of new stores (defined as stores opened during the past 12 months) on average was down compared with the size of existing units. For all retailers surveyed, new stores averaged 36,000 gross sq. ft. versus 38,911 gross sq. ft. for existing units.

The smaller footprint was driven largely by big-box retailers, where new outlets averaged 56,250 gross sq. ft. compared with

reported using environmentally friendly materials in their most recent construction projects, with another 14.5% planning to do so in the future.

The use of green materials was not as strong in the convenience store sector as it was in the other retail categories. Of the convenience chains surveyed, 75% reported they were using green materials or planned to in the future, compared with 100% of supermarkets, 94.1% of big-box retailers, 92.3% of specialty apparel chains, and 91.7% of home centers. ■