UK Shopfitting

UK Shopfitting

This Market Report analyses the UK shopfitting market, which was worth an estimated £2.27bn in 2005, an increase of 2% on the previous year.

There are several aspects to shopfitting, including: the manufacture/supply of standard fittings, such as shelving, racking and bins; customised shopfittings made of wood, metal, plastic, etc.; and point of purchase (PoP)/point of sale (PoS) displays, containers, cards and related promotional facilities. This report does not cover electronic equipment, such as tills, data-capture systems and video displays.

Shopfitting attracts attention from other types of company as well as shopfitters. Large interior fit-out companies have experience of fitting out offices, public buildings and other non-retail premises. Some of these companies also undertake the fitting out of retail premises. These interior fit-out companies often have links with the building contracting market. Conversely, some shopfitting companies undertake work that is not actually shopfitting; for example, in hotels or banks. The shopfitting industry comprises many small companies, which means that large retailers have only a small choice of major shopfitters with the resources to undertake really substantial projects. As a result, large general interior design and fit-out companies are winning some of the very large retail store contracts.

The shopfitting industry faces important challenges in addition to competition from large companies whose origin and background is not necessarily in retail fit out. There is a shortage of skilled people working in the shopfitting sector. There are also changes in the retail sector that have an impact on shopfitters, especially the smaller companies. Large retailers are increasing their market share, a move that reduces the number of potential customers. However, on the positive side, shifts in fashion and the trend of food stores to sell non-food items provide opportunities for shopfitters to remodel stores for their new product range. There is a move towards the use of standard fittings — many made of metal — a trend that could see an increase of overseas production of these products in cheaper manufacturing areas of the world. A Publicly Available Specification (PAS) for shopfitting is being developed in order to provide a recognised management system. This will produce a shopfitting standard that is recognised throughout the industry and by shopfitters' customers.

Key Note predicts a future in which retail sales could be slow due to economic factors, such as reduced gross domestic product (GDP) growth, high consumer debt, concern about inflation and rising unemployment. In addition, the use of Internet shopping is rising. However, this is not entirely negative for shopfitters because store refits are one way in which retailers stimulate sales. Key Note, therefore, anticipates a period of modest growth in the shopfitting market.

This Market Report analyses the UK shopfitting market, which was worth an estimated £2.27bn in 2005, an increase of 2% on the previous year.

There are several aspects to shopfitting, including: the manufacture/supply of standard fittings, such as shelving, racking and bins; customised shopfittings made of wood, metal, plastic, etc.; and point of purchase (PoP)/point of sale (PoS) displays, containers, cards and related promotional facilities. This report does not cover electronic equipment, such as tills, data-capture systems and video displays.

Shopfitting attracts attention from other types of company as well as shopfitters. Large interior fit-out companies have experience of fitting out offices, public buildings and other non-retail premises. Some of these companies also undertake the fitting out of retail premises. These interior fit-out companies often have links with the building contracting market. Conversely, some shopfitting companies undertake work that is not actually shopfitting; for example, in hotels or banks. The shopfitting industry comprises many small companies, which means that large retailers have only a small choice of major shopfitters with the resources to undertake really substantial projects. As a result, large general interior design and fit-out companies are winning some of the very large retail store contracts.

The shopfitting industry faces important challenges in addition to competition from large companies whose origin and background is not necessarily in retail fit out. There is a shortage of skilled people working in the shopfitting sector. There are also changes in the retail sector that have an impact on shopfitters, especially the smaller companies. Large retailers are increasing their market share, a move that reduces the number of potential customers. However, on the positive side, shifts in fashion and the trend of food stores to sell non-food items provide opportunities for shopfitters to remodel stores for their new product range. There is a move towards the use of standard fittings — many made of metal — a trend that could see an increase of overseas production of these products in cheaper manufacturing areas of the world. A Publicly Available Specification (PAS) for shopfitting is being developed in order to provide a recognised management system. This will produce a shopfitting standard that is recognised throughout the industry and by shopfitters' customers.

Key Note predicts a future in which retail sales could be slow due to economic factors, such as reduced gross domestic product (GDP) growth, high consumer debt, concern about inflation and rising unemployment. In addition, the use of Internet shopping is rising. However, this is not entirely negative for shopfitters because store refits are one way in which retailers stimulate sales. Key Note, therefore, anticipates a period of modest growth in the shopfitting market.