SPECS
store planning, equipment, construction and facilities services
Store Construction
& Outfitting Survey Annual study tracks building costs
By Marianne Wilson
Retail expansion is edging up, and so is the cost
of construction materials and labor, according
to Chain Store Age’s 2012 Store Construction
& Store Outfitting survey, which tracks retail
building activity and construction costs.
The annual survey, conducted by Leo J.
Shapiro & Associates, Chicago, for Chain Store
Age, is based on results from retail chains across
the country. Along with construction costs,
store size and expansion plans, it also examined
Company Expansion
Total Convenience Supermarket Home Center Specialty Apparel
Big Box
Average (mean) number of:
Stores in operation during 2011
392
218
343
511
618
267
New stores opened in 2011
11
4
8
10
26
7
New stores plan to open in
the coming 12 months
14
8
10
10
29
9
3.6%
3.7%
2.9%
2.0%
4.8%
3.4%
Expansion ratio:
(New stores planned as a percent
of stores currently in operation)
Source: Leo J. Shapiro & Associates
surveyed said the cost of construction materials was
the costs of store outfitting systems — including
rising, and 90% of big-box retailers said the same.
lighting, flooring, signage, fixtures, roofing heating,
And 92.3% of specialty apparel retailers and 90%
ventilation and air-conditioning (HVAC) — and
of big-box retailers said
retailers’ plans with
labor also was getting
regard to the use of green
more costly.
materials, LEED and
The cost of building
Energy Star certification.
stores
was divided into
The retailers that
two
categories:
tenant
participated in the survey
• Construction costs for freestanding stores
fit-out
costs
for
stores
were divided into five
average $48.67 per square foot
in
malls
and
other
type
categories: convenience
• Fit-out costs for in-line tenants average
of
centers,
and
building
stores, supermarkets,
$40.28 per square foot
shell construction
home centers, specialty
• Cost of construction materials and labor on the rise
costs for freestanding
apparel and big box
• Eight percent of all retailers pursuing LEED
locations.
(includes department
certification
In the freestanding
stores and other large• Durability and lifecycle costs are top concerns
category,
construction
format stores).
in purchasing store-outfitting equipment
costs (including concrete,
CONSTRUCTION
structural steel, structured
COSTS: For all retailers
masonry, roof and HVAC,
surveyed, 83.4% said the
exterior wall assembly, and insulation but excluding
cost of construction materials was increasing. An
interior fit-out) averaged $48.67 per square foot for
overwhelming majority, 71.7%, also said the cost of
all retailers surveyed. This compares with $43.48 in
construction labor was increasing.
last year’s study. (While the chains that participate in
While retailers across the board were in agreement
the survey vary year to year, comparisons can be used
about the increases, two classes of trade appear to be
to suggest general trends.)
feeling the increases the most: specialty apparel and
By retail sector, specialty apparel retailers had the
big box. A full 100% of the specialty apparel retailers
Quick Stats
construction costs
(per square foot)
Total
Convenience Supermarket
Home Center
Specialty Apparel
Big Box
Tenant fit-out in a
shopping center
$40.28
$28.00
$39.30
$30.67
$43.20
$43.92
Building shell in
freestanding location
$48.67
$49.00
$49.69
$50.25
$55.00
$42.75
Combined average
$44.48
$38.50
$44.49
$40.46
$49.10
$43.33
Source: Leo J. Shapiro & Associates
COST OF STORE OUTFITTING SYSTEMS
(Construction costs per square foot)
Total
Convenience
Supermarket
Home Center
Specialty Apparel
Big Box
Flooring
$2.76
$2.89
$2.83
$1.43
$3.44
$2.61
Ceilings
$1.51
$2.17
$1.58
$1.14
$1.59
$0.94
Display fixtures
$8.09
$6.56
$8.08
$7.93
$7.38
$10.88
Interior lighting
$3.21
$4.44
$2.91
$2.16
$3.36
$3.22
Interior signage
$0.84
$1.19
$1.12
$0.51
$0.29
$0.98
Roofing
$3.20
$4.03
$2.89
$3.29
$2.33
$3.41
HVAC
$1.81
$1.90
$1.81
$1.46
$1.72
$2.06
Exterior signage
$1.11
$1.79
$0.83
$0.69
$1.38
$0.88
Source: Leo J. Shapiro & Associates
SPECS
Construction Survey
highest building costs, at $55.00 per square foot.
(However, the overwhelming majority of stores in
this category were built in centers as opposed to
freestanding sites.)
Home centers averaged $50.25 per square foot,
followed by supermarkets at $49.69 per square
foot, and convenience stores came in at $49.00 per
square foot.
Big-box stores had the lowest building shell
construction costs, at $42.75 per square foot.
The cost of tenant fit-out work, which includes
drywall, ceiling, floor, wall finishes and interior
construction, but excludes the fixture package,
averaged $40.28 per square for all retailers surveyed.
This is almost flat with 2011, when tenant fit-out
costs averaged $40.47.
Big-box stores had the highest costs, at $43.92 per
square foot, followed by specialty apparel, at $43.20.
Supermarkets averaged $39.30 per square foot,
followed by home centers, at $30.67. Convenience
stores had the lowest costs, at $28.00 per square foot.
EXPANSION: The average number of new stores
planned for all participating chains for 2012 was
14 (per chain), up from 11 in the previous year.
(All comparisons regarding expansion are based on
information collected in this year’s survey.)
Looking at the individual sectors, specialty apparel
retailers are on track to open an average of 29 stores
this year, up from 26 last year. Supermarkets and
home centers plan to open 10, compared with eight
and 10, respectively, in 2011.
Big-box operators plan to open nine new stores this
year, up from seven last year. Convenience stores
retailers plan to open eight, up from four last year.
The planned expansion ratio (defined as new stores
planned as a percent of stores currently in operation)
averaged 3.6% for all retailers surveyed. As in past
years, specialty retailers continue to outpace the other
categories surveyed, with an expansion ratio of 4.8%.
OUTFITTING COSTS: Store-outfitting was up in
several categories and down in others compared
with last year. Display fixtures held onto their
longstanding status as the most expensive
category, averaging $8.09 per square foot for all
retailers surveyed, down from $8.24 per square
foot last year.
Interior lighting (including lamps, ballasts and
fixtures) was the second-most costly class of
equipment, averaging $3.21 per square foot, up
significantly from last year ($2.54 per square foot).
Roofing costs also saw a big bump, averaging $3.20
per square foot, compared with $2.67 last year.
Flooring averaged $2.76 per square foot, down
from $2.99 last year,
Construction cost for HVAC (including ductwork)
averaged $1.81 per square foot for all retailers, up
from $1.54 last year. Ceilings were flat with last year,
at $1.51 per square foot.
As in past years, the least expensive categories
were exterior signage, which averaged $1.11 per
square foot, down from $1.21 last year, and interior
signage, which at $0.84 per square foot was up
slightly over last year ($0.79 per square foot).
Durability ranked as the top concern (50%) in
selecting a physical support system for all retailers,
followed by lifecycle costs (41.7%). Maintenance
concerns and first costs were tied at 33.3%, followed
by energy efficiency (23.3%).
The survey also provided details on the types of
lighting, flooring, ceiling and roofing systems used
by retailers. In the lighting category, for example,
fluorescent lamps and LEDs are most common,
used by 95% and 83% respectively, of all retailers
surveyed.
In flooring, ceramic tile and vinyl/resilient
remain the standards, used by 80% and 70%,
respectively, of all retailer surveyed. Polished
concrete is another common choice, used by 61%.
Costs Of Construction Materials And Labor
Total
Convenience
Supermarket
Home Center Specialty Apparel
Big Box
Increasing
83.4%
72.7%
76.5%
77.8%
100.0%
90.0%
Decreasing
10.0%
18.2%
5.9%
22.2%
0.0%
10.0%
Stayed the same/Other
6.6%
9.1%
17.6.0%
0.0%
0.0%
0.0%
Increasing
71.7%
45.5%
76.5%
44.4%
92.3%
90.0%
Decreasing
21.7%
45.5%
11.8%
44.4%
7.7%
10.0%
Stayed the same/Other
6.6%
9.0%
11.7%
11.2%
0.0%
0.0%
Construction materials
Construction labor
Source: Leo J. Shapiro & Associates
(Full survey results, including a breakdown on
the types of flooring and other systems used by
retailers by segment, are available at chainstoreage.
com/resources.)
STORE SIZE: In the big-box category, new stores
(defined as locations opened during the past 12
months or currently under construction) averaged
74,000 gross sq. ft., compared with an average store
size of 150,000 sq. ft. for retailers that did not build
in the past year.
New supermarkets averaged 49,000 sq. ft.,
compared with 65,000 sq. ft. for retailers who did
not build in the past year. New convenience stores
averaged 5,500 sq. ft., versus 6,250 sq. ft.
New home centers averaged 57,000 sq. ft., which
was consistent with the store size of retailers that
had no new construction during the past year. New
specialty apparel stores averaged 6,731 sq. ft.
GREEN: Retailers’ interest in building green is an
ongoing theme, with 78.3% of all chains reporting
they use environmentally friendly materials (versus
76.7% in 2011), with another 10% planning to use
them in the future.
The use of green materials was strongest in
supermarkets, with 100% of surveyed retailers on
board, followed by home centers (88.9%) and bigbox stores (80%) and convenience stores (72.7%),
Specialty stores, perhaps owing to their in-line
emphasis, were the laggards, at 46.2%.
As much as retailers are interested in using
green materials, they are not yet as interested in
LEED (Leadership in Energy and Environmental
Design) certification. Eight percent (8.3%) of all
retailers surveyed said they were pursuing LEED
certification.
The results varied widely by class of trade. None
of the participating home centers or specialty
apparel retailers are seeking LEED certification.
But 20% of the big-box retailers are pursuing
certification, and 11.8% of the supermarkets are
doing the same.
EPA’s Energy Star certification program, which
focuses on energy efficiency, has more advocates.
Nearly 17% of all retailers in the survey said they
were pursing Energy Star certification.
Energy Star certification is most prevalent in the
supermarket sector, where 29.4% of retailers are
seeking it, and in convenience stores, at 18.2%.
mwilson@chainstoreage.com
8
More detailed information and all the charts
from the 2012 Store Construction & Outfitting Survey
can be found at chainstoreage.com/resources.
Top concerns in purchasing
Durability
Total
Convenience
Supermarket
Home Center
Specialty Apparel
Big Box
50.0%
54.5%
58.8%
44.4%
38.5%
50.0%
Lifecycle costs
41.7%
27.3%
52.9%
33.3%
23.1%
70.0%
First costs
33.3%
27.3%
35.3%
33.3%
46.2%
20.0%
Maintenance concerns
33.3%
63.6%
17.6%
33.3%
46.2%
10.0%
Energy efficiency,
when applicable
23.3%
27.3%
29.4%
33.3%
0.0%
30.0%
Aesthetics
18.3%
0.0%
5.9%
22.2%
46.2%
20.0%
Note: Totals more than 100% due to multiple responses.
Source: Leo J. Shapiro & Associates
Store Size
Total
Size of existing stores:
average (mean) gross square feet
Convenience Supermarket Home Center Specialty Apparel
Big Box
36,042
5,682
48,529
51,111
6,154
73,500
... Did not build in past year
48,333
6,250
65,000
57,000
5,000
150,000
... Built any in past year
31,944
5,357
43,462
43,750
6,250
65,000
Stores opened in past 12 months
35,896
5,500
49,000
57,000
6,731
74,000
Among those who ...
Source: Leo J. Shapiro & Associates
Construction Survey
SPECS
Types Of Flooring Used
Total
Convenience
Supermarket
Home Center
Specialty Apparel
Big Box
Ceramic tile
80.0%
90.9%
100.0%
44.4%
92.3%
50.0%
Vinyl or resilient
73.3%
45.5%
100.0%
44.4%
84.6%
70.0%
Polished concrete
61.7%
36.4%
76.5%
88.9%
38.5%
70.0%
Carpet
53.3%
0.0%
52.9%
44.4%
76.9%
90.0%
Wood
40.0%
0.0%
47.1%
33.3%
53.8%
60.0%
Stone
16.7%
0.0%
17.6%
22.2%
15.4%
30.0%
Bamboo
5.0%
0.0%
5.9%
0.0%
0.0%
20.0%
Other
3.3%
9.1%
0.0%
0.0%
7.7%
0.0%
Note: Totals more than 100% due to multiple responses.
Source: Leo J. Shapiro & Associates
Types Of Ceilings Used
Total
Convenience
Supermarket Home Center Specialty Apparel
Big Box
2 x 4 ft. acoustical panels
81.7%
81.8%
100.0%
55.6%
76.9%
80.0%
Open deck ceilings
78.3%
45.5%
94.1%
88.9%
76.9%
80.0%
2 x 2 ft. acoustical panels
61.7%
54.5%
47.1%
100.0%
53.8%
70.0%
Drywall/Plaster
61.7%
36.4%
47.1%
66.7%
92.3%
70.0%
Other
3.3%
0.0%
0.0%
0.0%
7.7%
10.0%
Note: Totals more than 100% due to multiple responses.
Source: Leo J. Shapiro & Associates
Types Of Roofing Used
Total
Convenience
Supermarket
Home Center
Specialty Apparel
Big Box
Single-Ply roofing system
61.7%
54.5%
88.2%
55.6%
15.4%
90.0%
Metal
45.0%
54.5%
70.6%
66.7%
7.7%
20.0%
Bur [built-up roof]
33.3%
45.5%
41.2%
33.3%
15.4%
30.0%
Asphalt shingles
23.3%
36.4%
23.5%
44.4%
7.7%
10.0%
Other
6.7%
9.1%
17.6%
0.0%
0.0%
0.0%
None/Leased out
15.0%
0.0%
0.0%
0.0%
69.2%
0.0%
Not reporting
1.7%
0.0%
0.0%
0.0%
7.7%
0.0%
Note: Totals more than 100% due to multiple responses.
Source: Leo J. Shapiro & Associates
Types Of Lighting Used
Total
Convenience
Supermarket
Home Center
Specialty Apparel
Big Box
Fluorescent
95.0%
72.7%
100.0%
100.0%
100.0%
100.0%
LEDs
83.3%
72.7%
100.0%
77.8%
76.9%
80.0%
Track and spot lighting
70.0%
54.5%
76.5%
55.6%
92.3%
60.0%
Incandescent
50.0%
45.5%
47.1%
66.7%
53.8%
40.0%
Day lighting system
46.7%
36.4%
64.7%
66.7%
15.4%
50.0%
Metal halide/Hid
35.0%
9.1%
41.2%
33.3%
46.2%
40.0%
Halogen
30.0%
0.0%
35.3%
33.3%
38.5%
40.0%
Note: Totals more than 100% due to multiple responses.
Source: Leo J. Shapiro & Associates