Today’s store design teams are facing mounting pressures. More than three-quarters (76%) of respondents to Retail TouchPoints’ latest Store Design & Experience Survey expected their store design budgets to rise in some way over the next 24 months, but that doesn’t mean they can make careless investments.
Store design teams are simultaneously navigating:
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- The rising cost of materials (57%);
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- Adapting store experiences to new shopper expectations (57%); and
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- Having to integrate new digital media and technology components into stores (44%).
While adapting to sustainability priorities wasn’t deemed a top challenge for respondents, most (61%) indicated that one of their top goals for the year was to integrate sustainability into more design plans and material decisions. It is clearly an issue teams are increasingly thinking about, especially with more global rules and regulations requiring organizations to report and publicly disclose their sustainability goals and progress.
A Crawl, Walk, Run Approach to Sustainable Store Design
Because this was the second year that respondents placed a significant focus on sustainability, we sought to understand how retailers were aiming to make more environmentally conscious decisions.
Retail TouchPoints has reported on varying approaches. Some organizations, such as Estée Lauder, are thinking bigger: they are establishing new store design standards and requirements that align with corporate strategies and goals. The Responsible Store Design Program was designed to advance the company’s progress toward environmental targets and included a repeatable framework to assess retail stores and inform future visual merchandising approaches.
“A checklist of core practices was provided to retail design teams to implement, which included specifications like LED lighting, low-flow plumbing fixtures, in-store recycling and end-of-day shutdown,” explained Al Iannuzzi, VP of Sustainability for the Estée Lauder Companies in an interview with Retail TouchPoints. “To support our designers’ selection of responsible materials for retail spaces, we developed a robust scoring framework. Scores are based on criteria such as material composition, third-party certifications and end-of-life considerations. We meet regularly with our Retail Leadership Council and regional design teams to check in on progress and assess new opportunities for sustainability improvements.”
Other companies are taking a slow-and-steady approach by strategically employing more eco-friendly materials. For example, Sleep Number debuted a high-tech store concept in July 2022 designed with sustainability in mind. The company considered materials manufacturing, construction and maintenance, and planned to test and monitor all design elements to determine whether they could incorporate these materials into future stores.
Respondents to the Store Design & Experience Survey indicated that they are focusing on using more sustainable materials and elements, such as:
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- Lighting (62%);
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- Fixtures (38%);
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- Signage (35%);
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- Flooring (26%); and
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- Refrigeration (22%).
Tackling Internal Challenges
Nearly one-third of respondents (32%) plan to remodel or renovate at least 25% of their store fleet through 2026, according to the survey. These projects present a prime opportunity for brands and retailers to incorporate more sustainable materials. However, experts indicate that because budget is an ongoing concern, design teams may be wary to act.
“I often encounter clients who initially show curiosity and interest in sustainable recommendations for their stores. However, their enthusiasm tends to wane swiftly upon seeing the high-level budget estimates associated with these suggestions,” explained Mardi Najafi, Principal and Chief Creative Officer, Retail + Hospitality Practice Lead at SDI in an interview with Retail TouchPoints. “Their reluctance to embrace sustainable practices in retail and hospitality projects stems from concerns about initial costs, a lack of awareness regarding benefits and implementation methods, and a focus on short-term financial priorities.
“They also perceive sustainability initiatives as complex to implement, and they worry about competitive pressures, regulatory uncertainties, and influences from suppliers and stakeholders prioritizing cost and convenience over sustainability,” Najafi added. Overcoming these barriers entails demonstrating clear economic benefits, educating about sustainability advantages, fostering a culture of sustainability, and aligning practices with broader business goals.”
Additionally, if budgets are too tight to invest in replacing or investing in more expensive (yet eco-friendly) materials, brands and retailers are increasingly recycling and reusing existing fixtures, displays and other design elements that still align with their new concepts. This extends the life of their current materials so they can minimize possible waste created in their projects.
