Executive Summary

This report analyses the UK shopfitting market, which in 1999 was estimated to be £1.6bn.

An account is given of the type of work carried out by shopfitters, including the retail, financial, catering and leisure centres. The market for shopfitting depends on new building work, refurbishment and trends in retail sales.

New building work output and new orders are analysed for the period covering the 1990s. The value of private commercial construction output in 1998 was £9.92bn, and there are strong indications that results for 1999 will exceed the 1990 level for this sector (£11.13bn) for the first time. However, the value of new orders for building shops in 1999 was £1.92bn, a decline on the 1998 figure of £2.15bn. A contributory factor to this decline was the restriction on the building of large out-of-town retail stores. As an alternative, retailers are expanding existing premises and, in some cases, opening smaller in-town stores. Analysis of store size shows a steady trend towards larger stores. However, traditional segmentation between food and non-food stores is becoming less clear, as an increasing number of supermarkets that were originally food stores now stock clothing and electrical goods.

The shopfitting industry shows signs of recovery from the situation of the last couple of years — with widespread restricted margins, and also some major takeovers and closures. There is scope for shopfitters to gain more influence in contracts by partnering with other important players such as designers, management contracts and suppliers of other retail material — point-of-purchase (PoP) being an important area.

Several other key issues are facing the industry. Overseas retailers are investing in the UK, a move that presents a challenge to UK shopfitters to satisfy their fitting-out requirements. On the other hand, there have been some recent foreign investments in the UK shopfitting sector; ROL Jonkoping of Sweden and Umdasch Shop-Concept of Austria are two recent examples.

Shopfitters also have to examine the consequences of the increase in factory outlets and, more significantly, `e-tailing' (electronic retail selling). The 2004 deadline for implementation of the physical aspects of the Disability Discrimination Act (DDA) is approaching and there should be significant opportunities for shopfitters in changes to premises, which will be needed to comply with the Act.

Key Note estimates that the market in 2000 will be £1.66bn, rising to £1.89bn in 2004.

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