Sustainable Store Development

With sustainability a growing issue, due to burgeoning levels of legislation and increasing awareness among consumers, this report looks at the key role that stores will play in meeting targets. It profiles the efforts of the leading retailers, developers and construction companies, demonstrating how businesses in all three areas can benefit from a sustainable approach and how they can improve.Features and benefits

• Summary of which retailers are expanding and what emphasis they place on sustainability
• Profiles of the major retailers, construction companies and landlords and evidence of best practice
• Analysis and outlook for retail space construction and what role sustainability will play in new builds and refurbishments
• Review of the major sustainability issues and examination of what problems will set the agenda in futureHighlights

In such a competitive environment, construction companies and developers must increasingly learn, and lead pitches with, sustainability, to gain a competitive advantage. In the short term this will help them to stand out in an aggressive market. Longer term it will become a basic necessity as part of a tender. They must now be proactive.Laggards and leaders are both moving forward. At the most proactive end of the spectrum, leading retail players such as M&S have demonstrated how sustainable stores can produce both cost and retail brand benefits. Among more reluctant retailers, a much greater number are finding themselves penalised by CRC payments and other regulations.Standardised ratings will provide a huge incentive. At present value benefits of sustainable buildings, such as cost savings and added asset value, remain hard to quantify. However, as legislation begins to address this issue, financial returns will be easier to calculate, motivating developers to act.

Your key questions answered

• Why do I need sustainable stores - and what do I need to do to get them?
• What retailers are adding space and how can I use a sustainable approach to win contracts with them?
• What actions do I need to take now to avoid profitability falling in the future?

Table of contents

EXECUTIVE SUMMARY
Verdict view
Key findings
Main conclusions

RETAIL CONSTRUCTION OVERVIEW
Construction contracts sharply in recession
Private development becomes even more important
Non-food retail development remains some way from recovery …
… but food stores remain a lucrative area
Sustainability key to winning business

SUSTAINABLE CONSTRUCTION OVERVIEW
Increasing participation in measurable targets
Increasingly involved process
Existing buildings must also be addressed
Outlook - development of industry standards

SUSTAINABLE DEVELOPMENT IN RETAIL
Disparate approach
Level of investment governed by perception of benefits
Grocers lead the way
High street lags
Take up to increase
Greater collaboration inevitable
Sustainability achievable now
Design crucial to sustainable buildings
Stores should be adapted to local area
More urgency needed in adapting existing stores
Training and education
Best practice
BREEAM

ISSUES IN FOCUS

HFCs
Water
Community engagement

RETAILERS
Expansion continues
Sustainability must play a role for all retailers
Asda
Dobbies
M&S
Sainsbury
Tesco
Waitrose / John Lewis Partnership

DEVELOPERS
Greater collaboration required
More proactive developers place demands on retailers
Prospect of financial returns will motivate developers
Hammerson

CONSTRUCTION COMPANIES
More ambitious individual targets required
More innovation in design
BAM
Willmott Dixon

OUTLOOK
Space will soon begin to stabilise
Developers now need to think about what they will offer in 3-5 years time.
Proportion of sustainable buildings will increase

APPENDIX
Definitions
Ask the analyst
Verdict consulting
Disclaimer

TABLE OF FIGURES
Figure 1: Quarterly output of the UK construction industry Q1 2007-Q2 2010
Figure 2: Food & grocery superstore/out-of-town selling space 1998-2013e
Figure 3: Sustainable construction process 2010
Figure 4: Sustainable retailers - characteristics of laggards and leaders 2010
Figure 5: Changing approach to building costs 2010
Figure 6: Sainsbury, Gloucester 2010
Figure 7: Asda, Bootle 2010
Figure 8: Dobbies, Aberdeen 2010
Figure 9: M&S, Pollock 2010
Figure 10: Sainsbury, Maidenhead 2010
Figure 11: Tesco, Ramsey 2010
Figure 12: John Lewis partnership original sustainable construction policy 2009
Figure 13: Hammerson sustainability focus areas 2010
Figure 14: BAM - looks for ways to add value by reducing cost 2010
Figure 15: Willmott Dixon - post-occupancy reviews improve process 2010
Figure 16: Occupied store space 2008-2013e

LIST OF TABLES
Table 1: BREEAM issue categories 2010
Table 2: Environmental Investigation Agency retailer HFC rankings 2010
Table 3: Major expanding retailers 2010
Table 4: Balfour Beatty sustainability key performance indicators worldwide 2005-2009