The retail and hospitality sectors of the economy are known for a good bit of volatility based on many local, regional, national, and even international factors. Designing buildings and spaces for clients in these sectors requires an understanding that change is constant and budgets may be limited. Most companies engaged in retail sales (i.e. the sale of goods to the public) often have a specific marketing or branding approach that they seek to have reflected in the design of their spaces, particularly if there are multiple locations, for a consistent appearance or message. Companies engaged in hospitality (i.e. the sale of services for accommodation, events, entertainment, etc.) may have similar marketing concerns, but also often expect the design of their facilities to directly influence their customers' experience. Faced with real competition on all sides, both physical and virtual (i.e. over the internet), these clients turn to their design teams to help give them something they can use as a competitive edge. The design professionals that are on top of current trends and emerging products can usually respond well and thus blend good design with successful business operations.

Overview

What can help a retail or hospitality facility stand out from the crowd? Sometimes it is all about design. A specific look that is clean, contemporary, and artistic may convey the preferred image to appeal to customers such as the iconic Apple electronics stores. On the other hand, a more traditional appearance may be embraced and even embellished to evoke images of a particular location such as a mountain ski resort. Either way, the design techniques used to achieve the desired character of a specific building will rest with the architects and interior designers to work through and resolve. The approach, details, and implementation of any design, however, will be a direct contributor to the way any customer views not only the built space, but the company itself.

Photo courtesy of Eldorado Stone

Hospitality and retail facilities rely heavily on design to convey the intended character and appeal to customers.

Some influences can be just as real, but sometimes a little less visible such as green building techniques. According to a 2013 report by McGraw Hill Construction in partnership with Waste Management, entitled Green Retail and Hospitality SmartMarket Report: Capitalizing on the Growth in Green Building Investments ¹, owners of retail and hotel establishments are reporting growing levels of green building activity. The report is based on a study of 79 retail, 30 hotel and 22 restaurant owners. This study defined a green building project as one built to LEED or another recognized green building standard, or one that is energy-efficient, water-efficient, improves indoor air quality, and/or engages in material resource conservation. By this definition, the percentage of retail owners that have taken a green approach in over half of their building projects rose from 18 percent in 2011 to 38 percent in 2013 and is expected to rise to 52 percent by the end of 2015. Hotel owners show an even greater investment in green building—the percentage of those owners that have taken a green approach in over half of their building projects rose from 28 percent in 2011 to 48 percent in 2013, and is projected to rise to 64 percent in 2015.

Owners note strong business benefits from green building investments and green O&M practices, helping to drive this growth. Most notably, they report the following advantages when comparing the performance of their green buildings to traditional buildings:

▶ Annual operating cost reductions were reported by 66 percent of retail owners (at an average reduction of 8 percent) and by 51 percent of hotel owners (at an average reduction of 1 percent)

▶ Energy use reductions were reported by 58 percent of retail owners and 67 percent of hotel owners at an average reduction of 15 percent for both

▶ Asset value increases were reported by 61 percent of retail owners (at an average increase of 7 percent) and by 71 percent of hotel owners (at an average increase of 11 percent)

▶ Return on investment (ROI) increases were reported by 67 percent of retail owners (at an average increase of 8 percent) and by 85 percent of hotel owners (at an average increase of 14 percent)