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ATLANTA - Retailers are continuing to spend money on store design even in these uncertain economic times, according to the results of the 12th Annual Store Fixture survey conducted by Display & Design Ideas (DDI) Magazine with cooperation from the National Association of Store Fixture Manufacturers (NASFM).
Survey results indicate that they plan to renovate more stores over the next year than in years past. In addition, many will be looking for ways to cut their display and design costs while still attracting consumers.
"The survey reflects what many of us have guessed, given the traumatic events of the past weeks, and the impact that they have had on the retail sector and the economy in general," said Karen Schaffner, publisher of Display & Design Ideas. "Retailers will be spending less money on their expansion and renovation plans, but not significantly so. On average, the budgets in these areas are within 10 percent of last year's totals, with retailers planning to spend $22 million on store renovation and $28 million on expansion, as opposed to $24 million and $30 million in 2001, respectively."
Survey respondents indicated they plan to renovate more stores than last year (an average of 72 compared to 69 in 2001), while cutting their expansion plans to an average of 53 new stores, vs. 60 stores in 2001. Retailers also expect to contain their renovation costs, planning to spend $7 per square-foot less for their fixed and loose fixtures than they did in 2001.
Surveyed retailers also reported that they are relying on their internal renovation ideas. A whopping 85 percent of respondents said they are conducting fixture specifications for renovations in-house, with only 15 percent using the services of an outside design firm.
Retailers are also turning to technology for help in containing costs, using interactive kiosks to dispense customer information and the Internet to comparison shop for suppliers.