| 1. |
INTRODUCTION |
6 |
| 2. | EXECUTIVE SUMMARY |
8 |
| 3. | ECONOMIC ENVIRONMENT |
13 |
| 3.1 | GDP |
13 |
| 3.2 | INFLATION & INTEREST RATES |
14 |
| 3.3 | UNEMPLOYMENT |
15 |
| 3.4 | HOUSEHOLD CONSUMPTION |
15 |
| 3.5 | HOUSING & CONSTRUCTION |
16 |
| 3.6 | STERLING |
17 |
| 3.7 | POPULATION PROFILE |
18 |
| 3.8 | CONCLUSIONS |
19 |
| 4. | THE RETAIL MARKET IN THE UK |
21 |
| 4.1 | MARKET OVERVIEW AND SIZE |
21 |
| 4.2 | RETAIL SALES/CONSUMER SPENDING |
22 |
| 4.3 | THE GROCERY MARKET |
24 |
| 4.3.1 | Overview and Market Size |
24 |
| 4.3.2 | Structure of the UK Grocery Market |
25 |
| 4.3.3 | Leading Supermarket Chains and Superstores |
28 |
| 4.3.4 | Convenience Retailing |
36 |
| 4.4 | NON-FOOD RETAILING |
37 |
| 4.4.1 | Clothing and Footwear |
38 |
| 4.4.2 | Electrical Appliances & Consumer Electronics |
39 |
| 4.4.3 | DIY & Hardware |
39 |
| 4.4.4 | Furniture & Furnishings |
40 |
| 4.4.5 | Leading Non-Food Retailers, Chains and Department Stores |
40 |
| 4.5 | OUT-OF-TOWN RETAILING/RETAIL WAREHOUSING |
42 |
| 4.5.1 | Retail Warehouse Construction |
43 |
| 5. | RETAIL CONSTRUCTION IN THE UK |
45 |
| 5.1 | CONSTRUCTION MARKET OVERVIEW |
45 |
| 5.1.1 | Value of Output – Construction New Work |
45 |
| 5.1.2 | Construction Output by Sector in 2005 |
46 |
| 5.1.3 | Construction Output in 2006 and Beyond |
47 |
| 5.1.4 | Value of Output – RMI |
48 |
| 5.2 | RETAIL CONSTRUCTION MARKET |
49 |
| 5.2.1 | The Shop Fitting Market - Retail Fit Out in the UK |
51 |
| 5.3 | CAPITAL EXPENDITURE AND BUILDING PROGRAMMES IN THE RETAIL SECTOR |
53 |
| 5.3.1 | Overview |
53 |
| 5.3.2 | Capital Expenditure in the Grocery Sector |
55 |
| 5.3.3 | Capital Expenditure in the Non-Food Sector |
59 |
| 5.4 | SHOPPING CENTRE DEVELOPMENT |
62 |
| 5.5 | MIXED USE DEVELOPMENT |
64 |
| 5.5.1 | Residential Development & Supermarkets |
66 |
| 5.6 | PROCUREMENT OF RETAIL CONSTRUCTION WORK |
69 |
| 5.6.1 | Construction and Procurement Practices of Leading Retailers |
70 |
| 6. | CONTRACTOR CAPABILITY IN THE RETAIL SECTOR |
73 |
| 6.1 | STRUCTURE OF THE CONTRACTING INDUSTRY IN THE UK |
73 |
| 6.2 | LEADING CONSTRUCTION CONTRACTORS IN THE RETAIL MARKET |
74 |
| 6.2.1 | Overview |
74 |
| 6.2.2 | Key Contractor Profiles |
75 |
| 6.3 | LEADING DEVELOPERS IN THE RETAIL MARKET |
84 |
| 7. | FACTORS AFFECTING RETAIL CONSTRUCTION |
86 |
| 7.1 | OVERVIEW |
86 |
| 7.2 | PLANNING LAWS |
86 |
| 7.2.1 | PPG6/PPS6 |
86 |
| 7.3 | THE ‘BIG FOUR’ SUPERMARKETS – LAND BANKS |
87 |
| 7.4 | SUSTAINABLE CONSTRUCTION IN THE RETAIL SECTOR |
88 |
| 7.5 | ONLINE RETAILING |
90 |
| 7.6 | PRE-FABRICATION & MODERN METHODS OF CONSTRUCTION (MMC) IN THE RETAIL SECTOR |
92 |
| 7.6.1 | Application to Retail Projects |
93 |
| 8. | FUTURE PROSPECTS |
94 |
|
TABLES AND CHARTS |
| CHART 1 | VALUE OF RETAIL CAPITAL EXPENDITURE 2000-2010 (£ BILLION) |
8 |
| CHART 2 | INTEREST RATES AND INFLATION (CPI) FROM 1990-2008 |
14 |
| CHART 3 | PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2006 |
16 |
| TABLE 4 | EXCHANGE RATE FLUCTUATIONS 2000-2007 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES |
18 |
| CHART 5 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 (‘000) |
19 |
| CHART 6 | NUMBER OF UK RETAIL OUTLETS 1997 - 2005 |
22 |
| TABLE 7 | PERFORMANCE OF THE UK RETAIL MARKET 1997-2007 |
23 |
| CHART 8 | UK GROCERY MARKET PERFORMANCE – MARKET VALUE 2000 – 2010 (£ BILLION) |
25 |
| TABLE 9 | STRUCTURE OF THE UK GROCERY MARKET 2006 (£ BILLION) |
26 |
| TABLE 10 | UK GROCERY MARKET SIZES AND SHARES 2006 AND 2010 |
28 |
| CHART 11 | UK GROCERY MARKET SHARE – MAJOR MULTIPLES – AUGUST 2006 |
29 |
| CHART 12 | THE ‘BIG FOUR’ SUPERMARKETS – KEY FINANCIAL PERFORMANCE 1996-2006 |
30 |
| TABLE 13 | TESCO - UK STORE PORTFOLIO |
32 |
| TABLE 14 | ASDA - UK STORE PORTFOLIO |
33 |
| TABLE 15 | J SAINSBURY - UK STORE PORTFOLIO |
35 |
| TABLE 16 | OTHER MAJOR SUPERMARKET CHAINS IN THE UK GROCERY MARKET |
36 |
| CHART 17 | UK NON-FOOD RETAILING – MARKET SECTOR SHARES 2006 |
38 |
| TABLE 18 | LEADING NON-FOOD RETAIL CHAINS IN THE UK |
41 |
| TABLE 19 | PROJECTED OUT-OF-TOWN SALES GROWTH BY SECTOR 2005-2010 |
42 |
| CHART 20 | RETAIL WAREHOUSE DEVELOPMENT PIPELINE (SQ. M) 1996-2006 |
44 |
| CHART 21 | VALUE OF CONSTRUCTION OUTPUT NEW WORK 1998-2008 (£ BILLION) |
45 |
| CHART 22 | VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2005 |
47 |
| TABLE 23 | RMI WORK OUTPUT – 2005 (£M) |
48 |
| TABLE 24 | COMMERCIAL RETAIL WORK – CONTRACTORS OUTPUT 2000 – 2010 (£M) |
50 |
| CHART 25 | UK SHOPFITTING MARKET 1998-2008 £M MSP |
52 |
| TABLE 26 | CAPITAL EXPENDITURE IN THE RETAIL SECTOR 1995-2010 (£M) |
54 |
| TABLE 27 | CAPITAL EXPENDITURE OF THE LEADING GROCERY CHAINS 2005 (£M) |
55 |
| TABLE 28 | EXPANSION PLANS OF LEADING UK SUPERMARKETS |
57 |
| TABLE 29 | CAPITAL EXPENDITURE OF THE LEADING NON-FOOD RETAILERS 2005 (£M) |
59 |
| TABLE 30 | EXPANSION PLANS OF LEADING UK DEPARTMENT STORES |
61 |
| CHART 31 | IN-TOWN SHOPPING CENTRE DEVELOPMENT PIPELINE (SQ M) 1996-2006 |
63 |
| TABLE 32 | PRINCIPAL MIXED-USE SCHEMES IN DEVELOPMENT – 2006 |
65 |
| TABLE 33 | RESIDENTIAL DEVELOPMENT PLANS OF LEADING UK SUPERMARKETS |
68 |
| TABLE 34 | CONSTRUCTION & PROCUREMENT PRACTICES OF LEADING UK RETAILERS |
71 |
| TABLE 35 | MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2004 |
74 |
| TABLE 36 | LEADING CONTRACTORS’ SHARE OF RETAIL SECTOR CONSTRUCTION WORK IN 2005 (£M) |
75 |
| TABLE 37 | TOP 5 RETAIL DEVELOPERS IN THE UK – CURRENT PROPERTY PORTFOLIOS 2006 |
85 |
|
CHART 38 |
BREAKDOWN IN ONLINE SPENDING IN 2005 BY SECTOR (%) |
91 |
