DDi - March 2010 - (Page 58)

58 Design Leaders 2010 Despite a trying 2009, retail design firms brace for a 2010 comeback By Alison Embrey Medina, Executive Editor he year 2009 was a tough pill to swallow in the retail design firm world. With retail expansion at a near standstill and cutbacks proliferating throughout the industry, retail design firms have had to take stock of their client lists, expand their services and hang on to their profitability by the skin of their teeth. But it hasn’t all been bad news. International work has seen an uptick, with Design Leaders firms reporting having done work in these top three non-U.S. destinations: Canada (36 percent), China (25 percent) and Mexico (24 percent). Half of the firms in this year’s survey (50.5 percent) also reported having worked on at least one green project in 2009, proving that sustainable design is still very much in the forefront. Some firms actually reported an increase to their retail billings in 2009 over 2008, including Big Red Rooster (up 3.6 percent in retail billings), Bergmann Associates Inc. (up 15 percent), Shikatani Lacroix Design (up 27.2 percent) and Highland Associates (up 37.9 percent). That’s nothing to scoff at in these trying times. In this year’s annual Design Leaders survey, a total of 73 firms (18 of the 91 firms chose not to report billings) reported a collective total of approximately $505.5 million in retail design fee revenues in 2009. That equates to an average of $6.9 million per firm, a sizeable decrease from last year’s $10 million per firm. This year’s top 10 design firms (by 2009 retail billings) alone accounted for $332.3 million—more than twothirds of the revenue for the entire listing. Seventy-six firms also reported designing approximately $251.4 million sq. ft. of retail space (both new and renovated) in 2009. With retail expansion programs down significantly on the year as retailers tested store concepts market-bymarket versus launching full-scale rollouts, this number is not surprisingly down from the year prior. That equates to an average of $3.3 million sq. ft. per firm, nearly half of last year’s $7 million sq. ft. per firm. For the first time ever, Jacobs tops the listing for the highest annual retail billings in 2009, jumping T from No. 3 in 2008 to No. 1 with $43.4 million in annual retail revenue. This number is down from the Pasadena, Calif.-based firm’s 2008 retail billings of $59.3 million. Jacobs staffs more than 52,000 employees and devotes fewer than 1 percent of its work to retail design (total billings for the company came in at $11.47 billion in 2009). The firm reports designing 42.6 million sq. ft. of retail in 2009, with leading clients CVS/pharmacy, Publix Super Markets and Pappas Restaurants. International opportunities Top countries outside the United States where Design Leaders firms worked in 2009: 36% 25% 24% 14% (tie) 14% (tie) 14% (tie) 13% 12% 11% 9% 8% Canada China Mexico United Kingdom Brazil United Arab Emirates Japan India Korea Italy Germany Seattle-based Callison fell to the No. 2 spot this year, reporting its 2009 retail billings dropped significantly to $43 million, from $113 million in 2008. The firm also reported that retail design only encompassed 36 percent of its total annual business in 2009, down from 60 percent in 2008. (Total billings also dropped from $185 million in 2008 to $119.5 million in 2009.) Ranked third this year is MulvannyG2 Architecture at $42 million retail billings (down from No. 2 and $65 million last year), with Gensler holding steady in the No. 4 spot with $39 million (down from $53 million in 2008). Perkowitz+Ruth Architects snuck in to the No. 5 spot at $35 million, moving WD Partners down to No. 6 at $34.5 million. Design Leaders listing begins on page 60. Annual retail billings in 2009: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Jacobs Callison MulvannyG2 Architecture Gensler Perkowitz+Ruth Architects WD Partners Miller Zell Inc. NBBJ GreenbergFarrow FRCH Design Worldwide Little Big Red Rooster CMA Gruskin Group (Gruskin Architecture + Design P.C.) MBH Architects JGA Bergmann Associates Inc. Herschman Architects Inc. Highland Associates Shremshock Architects Inc. $43.4 million $43 million $42 million $39 million $35 million $34.4 million $30 million $28 million $19.8 million $17.7 million $12 million $8.3 million $8.1 million $8 million $7.3 million $7.1 million $6.9 million $6.5 million $6 million $5.8 million Other locales receiving several mentions include Australia, Kuwait, Puerto Rico, Russia, Singapore, Spain, Taiwan and Turkey, all at 5%-6%. Highest retail square footage designed in 2009: 1 2 3 4 5 6 7 8 9 Jacobs MulvannyG2 Architecture Architectural Group Intl. Bergmann Associates Inc. FRCH Design Worldwide WD Partners Callison Perkowitz+Ruth Architects Gensler 42.6 million sq. ft. 20 million sq. ft. 18.5 million sq. ft. 17 million sq. ft. 16.4 million sq. ft. 15.4 million sq. ft. 15 million sq. ft. 13 million sq. ft. 10.5 million sq. ft. 7.5 million sq. ft. 10 King Retail Solutions Figures have been rounded for this chart. Amounts represent square footage for retail design projects only. In many instances, the firm’s total designed square footage is higher. Not all Design Leaders firms chose to disclose square footage data. Figures have been rounded for this chart. Amounts represent revenue from retail design services only. In many instances, the firm’s total billings are higher. Not all Design Leaders firms chose to disclose financial figures. | March 2010 www.ddimagazine.com http://www.ddimagazine.com

Table of Contents for the Digital Edition of DDi - March 2010

DDi - March 2010
Contents
From the Editor
Newsworthy
Greentailing
Editor’s Choice
Design Snapshot: H&M Home
Design Snapshot: The School of Life
American Eagle Outfitters
Juicy Couture
Channel Focus: Jewelry
Shopper Marketing Section
Selfridges 3rd Central
Schnucks Market
Right Light
Design Leaders 2010
In-Store Technology
Product Spotlight
GlobalShop Show Coverage
Classifieds
Advertisers
Calendar
Shopping with Paco

DDi - March 2010