Commercial Construction Magazine

 Today in the News

Retail sector adds more jobs in Janaury

As the economy continues to look for a smattering of good news, every little bit helps. According to a recently released report by the U.S. Department of Labor, job losses are slowing down. Some of this can be attributed to sizable job gains in the retail industry.

The report says the U.S. economy shed 22,000 jobs in January, while the unemployment rate dropped to 9.7 percent. And sure, the labor market remains weak, with more than 4 million American jobs lost in the past year and 8.4 million jobs lost since the recession began in December 2007.

But the retail industry added 42,100 jobs in January, with gains concentrated in department stores, groceries, and apparel retailers. Pharmacies and electronics retailers also added jobs, while furniture and building supply retailers trimmed payrolls slightly.

For the overall labor market, wages and hours worked both rose slightly, and firms added more than 50,000 temporary workers in January. While positives, these also are signs that employers remain hesitant to take on new permanent workers.

Same-store sales jump 3.3% in January

And the good news continues. January sales at many top U.S. retail chains improved over last year's decline, with many avoiding drastic clearance sales and shoppers redeeming holiday gift cards. According to a Thomson Reuters report, same-store sales in January rose 3.3 percent based on a tally of 29 retailers. The numbers were better than the 2.5 percent analysts had expected. Sales rose in all categories except drug stores, which posted a 1.4 percent drop.

The results, powered by stronger-than-average results at apparel and accessory stores followed by department stores, mark a rebound from a year ago, when sales fell 5.7 percent, and follow a bigger-than-expected 2.9 percent increase in December.

Some retailer experts are exercising caution, stating the positive momentum will be hard to maintain if unemployment remains high.

Dollar General to open 600
stores, add 5,000 jobs

Dollar General is making a push to expand, thanks to plans to open 600 stores and add 5,000 new jobs over the next 12 months. The 5,000 anticipated new jobs come on the heels of approximately 4,000 new jobs created by Dollar General in 2009, bringing the estimated total to 9,000 over two years. Dollar General will be adding jobs throughout the chain. With more than 8,800 stores, the company is already one of the nation’s largest employers with approximately 78,000 employees.

 -- Posted Febuary 8, 2010

U.S. restaurant count falls,
but not as bad as expected

Numbers don't lie. People just aren't eating out as much as they used to in the past. The number of U.S. restaurants fell this past fall as the industry continued to suffer from serious declines in traffic and sales. The good news is that the rate of closures was less than what was reported last spring.

According to The NPD Group's ReCount data released recently, the total number of  declined 0.3 percent, or by 1,652 restaurants, to 578,353 locations in the fall of 2009, compared with fall 2008. ReCount tracks commercial restaurant locations twice a year, in the spring and fall.

Restaurant closures were more severe in the spring of 2009, when the total number of U.S. restaurants fell 1 percent from a year earlier, reflecting the loss of more than 4,000 eateries.

The number of full-service restaurants — which NPD said comprises casual-dining, family-dining and fine-dining eateries — contracted 0.3 percent in the fall of 2009, compared with a year ago, while the number of quick-service restaurant locations declined by 0.2 percent.

Within full service, restaurants belonging to mid-sized chains, or those with locations numbering between 100 and 499, posted the largest declines, down 2 percent from a year ago. Independent quick-service restaurants and smaller QSR chains experienced declines last fall as well, as each posted a 2-percent drop in total unit counts.

Growth at major chains, or those with at least 500 locations, remained flat in both quick-service and full-service segments.

Regionally, the Central part of the United States, which includes Michigan, Ohio and Illinois, saw the most restaurants close, with a 1.2-percent drop in the number of locations. The Northeast region also was relatively hard hit, with a 0.6-percent drop in restaurants.

 -- Posted Febuary 5, 2010

You got it: NYC Mayor Bloomberg
gets 100 ideas for green buildings

When New York City Mayor Michael Bloomberg and the City Council asked a panel of experts to give them advice on ways the city's building code could be more environmentally responsive, they weren't sure what to expect. How about 100 ideas? The panel, which included people from the building industry and environmental organizations, shot back 100 ideas. Among them are imposing the latest energy standards on all buildings over four stories, and phasing in temperature controls for individual apartments to keep people from opening windows when it gets too warm inside. Check out The New York Times article .

It's about that time: Baltimore must
produce green-building rules set in '07

In 2007, the city of Baltimore adopted a set of supposedly sweeping green-building rules, promising the standards would take effect by the end of 2009. But to date, city officials have yet to release any of them, which cover both private and public buildings. A city housing official says he's waiting on legal advice on a small number of issues and hopes to resolve any delays in the next few weeks. The law requires most buildings over 10,000 square feet to achieve a silver rating under LEED standards. Read The Baltimore Sun story. 

-- Posted Febuary 3, 2010

NRA says operator optimism hits two-year

The National Restaurant Association’s monthly Restaurant Performance Index hit a 22-month high in December, driven by improving sales and traffic trends, as well as operator optimism that hit its highest level in two years.

The NRA’s index, or RPI, is a composite look at the industry’s health based on operator results and monthly surveys. It tracks restaurant industry same-store sales, traffic, labor and capital expenditures, and is based on a 100-point scale, with results above that level signifying growth, and results below signifying contraction. It consists of two components, the Current Situation Index and the Expectations Index.

In December, the index reached 98.7, a 0.9-percent uptick from November, according to the NRA’s report released Friday. Below the 100 mark, however, the result represented the 26th consecutive month of industry contraction.

Still, a greater percentage of restaurant operators reported gains in same-store sales and guest traffic compared with the prior month, while a decreasing share of operators complained of erosion in those areas, the NRA said. Operator expectations for rising sales and improved economic trends in the next six months also improved.

NRA officials said that operator expectations for business performance during the next six months also improved. Indeed, the Expectations Index, which measures restaurant operators’ six-month outlook, stood at 100 in December. The NRA noted that number was up from 99.6 in the prior two months and represented the first time in eight months that the Expectations Index reached the 100 level, meaning that restaurant operators were no longer pessimistic about the six-month outlook for the industry.

Thirty five percent of restaurateurs surveyed by the association expect to have higher sales in six months, compared with the same period in the previous year, up from 31 percent in November. The NRA said that percentage was the highest in more than two years. In comparison, 21 percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, down from 24 percent last month.

Operators are also feeling better about the direction of the economy, the NRA said, with 34 percent saying they believe conditions will improve during the next six months and 18 percent saying they expect conditions to deteriorate. In comparison, last month 27 percent of respondents forecasted an improving economy, while 19 percent predicted problems ahead.

In another important measure included in the index, the percentage of operators who said they had made a capital expenditure for equipment, expansion or remodeling during the past three months fell from 33 percent in November to 31 percent in December. NRA officials said December’s number represented the lowest level on record for such expenditures.

The percentage of surveyed operators who plan to make such a capital expenditure during the next six months declined from 41 percent in November to 39 percent in December.

-- Posted Febuary 2, 2010 

ALDI makes big push
in Texas grocery market

With several locations nearing completion, officials of ALDI discount grocery chain rolled out opening dates for the store’s 11 locations in the Fort Worth/Dallas area. In the coming months, ALDI Inc., one of the largest privately owned retail discount supermarket chains in the world, will open 11 locations amid its North Texas expansion of 25 stores.

Among the first to open March 19 will be three Fort Worth stores, as well as one store in Hurst, one in Pantego and one in White Settlement, with a second round of stores set to open in the area April 23.

ALDI also is entering the Florida and Rhode Island markets.

The chain currently operates more than 1,000 stores in 29 states in the Midwest and Eastern United States. Touted as a store that likes to compete with Wal-Mart prices, a typical ALDI location is 17,000 square feet and is situated on about 2.5 acres.

Kohl's stores achieve 100% green power

Kohl’s Department Stores officials say it has purchased enough green power to meet 100 percent of its purchased electricity use with an annual green power purchase of nearly 1.4 billion kilowatt-hours (kWh).

With this latest purchase of renewable energy, Kohl’s increased its ranking to No. 2 overall and among Fortune 500 companies on the U.S. Environmental Protection Agency’s listings of top green power purchasers.

 Kohl's retains its top ranking among retailers. According to the EPA, Kohl's green power purchase of 1,367,376,000 kWh is equivalent to avoiding the carbon-dioxide emissions of nearly 188,000 passenger vehicles per year or the amount of electricity needed to power nearly 128,000 average American homes annually.

-- Posted January 27, 2010

Target to spend $1 billion
to remold stores in 2010

Target will focus on updating existing stores rather than opening new ones this year. The discounter will spend $1 billion renovating 340 stores while opening fewer than 10 new locations.

The company said it plans to incorporate a variety of new merchandise initiatives in the remodeled stores, including expanded grocery offerings, enhanced layout, and an improved in-store experience in a variety of other merchandise areas including beauty, home, electronics and video games.

Target is also developing smaller stores for urban markets and plans to expand outside the United States, most likely in Canada, Mexico or Latin America, beyond a three- to five-year horizon.

Retail sales expected
to increase 1.2% in Q4

Retail sales and traffic for first quarter 2010 are expected to perform similarly to the 2009 holiday shopping season, providing a slight lift for retailers as the retail year begins, according to ShopperTrak.

Total U.S. foot traffic is expected to increase 1.8 percent, according to the company’s Retail Traffic Index, while its National Retail Sales Estimate is forecasting a 1.2 percent retail sales rise for the three-month period.

Following a dismal 2009, retailers received some much needed positivity during the holidays as the late spending rush saved the season, providing a 1.7 percent retail sales increase with a 2.9 percent traffic decline -- slightly above the company’s anticipated performance.

After analyzing current and historical data, ShopperTrak believes retail sales will perform very similar to the holidays, while quarterly traffic is expected to increase. By comparison, ShopperTrak reported first-quarter sales in 2009 fell 4.2 percent, while total U.S. foot traffic slipped a sharp 13.0 percent.

Retailers should experience lower sales and traffic levels in the early first quarter following the holiday shopping season. ShopperTrak said these slower levels will most likely continue through President’s Day (Feb. 15) -- which should provide a slight uptick due to the long weekend -- then remain slightly above last year’s pace until St. Patrick’s Day (March 17), which could also provide a slight retail uptick as well.

-- Posted January 22, 2010

NRA says 2010 will be better year

The National Restaurant Association is projecting that 2010 will include a gradual improvement in sales for the restaurant industry, as upticks in real disposable income, employment and national population counts drive the economy into a better light than the darkness of years past.

Industry sales are projected to reach $580.1 billion this year, a 2.5-percent increase in current dollars from 2009. When adjusted for inflation, 2010 sales will be essentially flat from 2009 levels, or fall 0.1 percent, which is an improvement over the 1.2-percent and 2.9-percent real sales declines the industry booked in 2008 and 2009, respectively.

Like the trends of the past few years, the quick-service segment is expected to fare slightly better than the full-service segment, as diners focus on value and specials. Quick-service restaurants are projected to post sales of $164.8 billion in 2010, a gain of 3.0 percent in current dollars over 2009. Sales at full-service restaurants are projected to reach $184.2 billion in 2010, an increase of 1.2 percent over 2009.

The restaurant industry has felt severe pressures from the downtrodden economy for the past two years, including reduced consumer spending, rising unemployment and unstable capital markets. To combat the falling traffic levels that led to reduced sales, operators have cut costs, streamlined operations and attempted to drive traffic through lower-priced offerings or other value-driven promotions.

According to an NRA operator survey completed in December, most operators say their businesses will do better in 2010 than in 2009. Helping the industry are long-term trends such as households with dual earners who are too busy to cook at home and the continued desire to frequent restaurants for social engagements.

A recent consumer survey by the NRA showed 35 percent of adults surveyed said they don’t eat out at restaurants as often as they would like, and 65 percent of adults surveyed said their favorite restaurant foods provide flavors and tastes they can’t easily duplicate at home.

 IFA pushes for new health care bill

In the wake of the recent upset victory in the Massachusetts Senate race, the International Franchise Association is urging federal lawmakers to forge new bipartisan legislation that will make health care insurance more affordable for small businesses.

The surprise election of Scott Brown, a Republican, to Sen. Edward Kennedy's former seat, gave the GOP 41 votes in the Senate, thereby ending the Democrats' filibuster-proof supermajority of 60 and leaving the future of President Obama's health care reform package uncertain.

The IFA said the election demonstrated that the partisan approach to health care reform "was heading down a road that would have eventually been disastrous. This is a time to start over."

The bill has bounced around the House and Senate, with some Democrats holding out hope the House would accept the Senate bill as written. Now, that scenario seems unlikely.

The prime consideration in the House and Senate bills was access to coverage, not how the economic viability of employers was being impacted. The congressional bills also presumed that no employer wants to offer health care insurance, French continued.

The IFA said it supports health care insurance reform that, among other things, will ensure coverage to Americans regardless of pre-existing conditions; provides tax credits and subsidies to help small businesses afford to offer plans; and create national or regional exchanges like association health care plans, where small businesses can pool together.

Intersign changes name to HotelSigns.com

Intersign Corporation, one of the country’s largest manufacturers of hotel and hospitality signs, has given it's hospitality division a new look to start off the New Year. Hospitality Sign Company will now be known as HotelSigns.com.

Company officials say the name is the next logical step in its mission to meet customer demand. The name reflects the success of its Web site, which offers complete online ordering capabilities, instant customization and product previews. The site currently offers 56 standard colors in addition to extensive customization options in color, dimensions, fonts, backgrounds, and more.  HotelSigns.com also allows quick and accurate previews of a customer’s standard or customized final product to avoid inaccurate orders and delays.

In 2009, Intersign shipped more than 600,000 signs, with nearly 90 percent of those orders shipped in 18 calendar days or less. The company’s specialized manufacturing processes include laser-cutting, match routing, sandblasting and screen-printing.

Current customers include Hilton, Choice Hotels, Best Western Hotels, La Quinta, NYLO, IHG brands and independent hotels and resorts across the United States, and parts of Mexico, the Caribbean, Jamaica and South America. 

-- Posted January 22, 2010

Blimpie unveils new, cost-saving
national restaurant design

Blimpie, America’s Sub Shop, is unveiling a new restaurant design that melds the past with the future by incorporating classic, contemporary Americana design concepts. The restyled look has a functional, friendly Mid Century Modern, featuring a natural-looking décor and architectural elements, including warm lighting and iconic photography displayed on the walls.

Blimpie’s design partner 602 Design developed the vision with Mid Century Modern design cues taken from Charles and Ray Eames works.

The new Blimpie look is reminiscent of the designs from its founding year: 1964. The new stores will feature a subtle color palette, light-stained tables and chairs with splashes of bright-colored hues throughout. The classic photography will feature the fabric of everyday American lives, from musical instruments and cars to clothing styles, surfing and more. Natural design elements, such as steel and wood, are integrated into the intrinsic nature of the design itself.

The new design is budget-conscious, saving future Blimpie franchisees between $25,000 and $75,000 in build-out costs. Cutting the cost of the build-out is in line with the company’s goal of supporting the future of the franchise system by providing efficiencies in any type of economy. Existing franchise units have the option to retrofit their locations with portions of or all of the new design elements.

Blimpie officials say the new look differentiates the brand from other national sub chains. The first Blimpie location featuring the new look opened this past November in Happy Valley, Ariz. To date, locations in Illinois, Florida and New Jersey have signed on to receive various levels of upgrades. It’s estimated an additional 12 stores boasting the new design will open this year.

Meijer opens smaller, grocery-
focused store in Chicago suburb

Meijer opened its first smaller format, grocery-focused store in the Chicago suburb of Niles in January. The new 102,000 square-foot location is about half the size of most Meijer supercenters. The store is grocery and pharmacy focused, while still providing some general merchandise offerings. The location is Meijer’s 12th store in suburban Chicago. Meijer also plans to expand the new concept in Chicago with another grocery-focused store in Orland Park. Construction includes a full renovation of a currently vacant retail site. The Orland Park location is slated to open later this year.

Johnny Rockets unveils
new fast-casual concept

Bistro Babusan opens first
of new chain formats in Texas

Genghis Grill Franchise Concepts, parent to the 41-unit Genghis Grill Mongolian barbecue chain, and Mark H. Brezinski, founder of Bengal Coast Restaurants LP, are partaking in a joint venture in a fast-casual Asian restaurant to be called Bistro Babusan. The first restaurant, scheduled to open by late April in Allen, Texas, a suburb north of Dallas, will cover about 3,400 square feet and have a full bar. The first Bistro Babusan will be in a 1.1 million-square-foot mixed retail complex in Allen, called The Village at Fairview.

Golfsmith plans to open
four stores in 2010

Golfsmith International Holdings plans to open four stores this year. The stores are one of its five revenue growth initiatives planned for 2010. Other strategic initiatives on the horizon for the company this year include improving retail business with increased emphasis on “selling culture,” increasing gross margin, refining direct-to-consumer business and improving operational excellence.

--Posted January 21, 2010

REI adds to green building efforts

Recreational Equipment Inc. (REI) plans to open a new store in Bozeman, Mont, this spring. Located at Stone Ridge Square, the 25,000 square-foot, one-story location, store will offer space for its co-op and its non-profit partners to host outdoor-related classes, events and presentations. REI's green building construction and efficient operations will play an important role in helping it meet its goal to become climate-neutral by 2020. Green building features include a day lighting strategy where skylights filter natural light throughout the store, high efficiency water fixtures, carpet tiles manufactured through a climate-neutral process, and low-VOC finishes and materials.

Kohl's expands in Maryland

Kohl’s Department Stores will open two new locations in Maryland in March. The department store chain is a cornerstone of Greater Baltimore’s retail sector, with eight stores in the region, and annual sales that top $16 billion. The stores will be located in Annapolis, at the Annapolis Towne Center, and Middle River, located at the Martin Plaza Shopping Center.

JoS. A. Bank's to offer rental tuxedos

JoS. A. Bank Clothiers started to test tuxedo rentals in 5 percent of its stores in January. The test is part of an effort to expand its offerings to wedding parties. Following the test, the company plans to roll out the rental service in more than half of its 474 stores in the spring. The company operates in 42 states. Currently, the company sells, but does not rent, tuxedos. The rental service adds formalwear products and services commonly used by wedding parties and offers "one-stop shopping" to customers. The retailer plans to work with a national distributor that owns the inventory and delivers orders to the stores. The structure will add to its margins, but at a lower rate than merchandise sales.

Sprouts expands into northern California

Sprouts Farmers Market is expanding into northern California with a store in Sunnyvale. Scheduled to open in early June, it is the only Sprouts slated for northern California at this time. The 32,400-square-foot store will be located in a former Circuit City location. Sprouts operates 42 stores in Arizona, Texas, Southern California and Colorado.

--Posted January 20, 2010

Calgreen: California approves
mandatory green building code

Californians will know it as it “Calgreen” – the most stringent, environmentally friendly building code standards of any state in the nation. The recently approved code, which took effect in January, requires builders to install plumbing that cuts indoor water use, divert 50 percent of construction waste from landfills to recycling, use low-pollutant paints, carpets and floorings and, in nonresidential buildings, install separate water meters for different uses.

Calgreen also mandates the inspection of energy systems by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently. It will enable local jurisdictions, such as San Francisco, to retain its stricter existing green building standards or adopt more stringent versions of the state code if they choose.

A wide range of building industry and realty associations, as well as the state Chamber of Commerce supported the code. Industry officials said it would increase construction costs only slightly. On the flip side, the regulations were opposed by several private organizations that offer construction-rating systems, including the U.S. Green Building Council. A report said that USGBC officials fear the provision of the code would allow cities and counties to adopt more stringent standards, which they said could result in confusion for builders, local governments and the public. The group denied notions that it was trying to protect its market share by discouraging a competing verification system.

State officials said the regulations create a single comprehensive code, clearing up confusion over varying regulations, and it allows builders to receive green certification without paying a third party. They also said the new rules will help the Golden State reduce greenhouse gas emissions and achieve 33 percent renewable energy by 2020.

Staples unveils largest single
rooftop solar-power installation

Staples has unveiled the largest single rooftop solar-power installation at its 200,200-square-foot fulfillment center in Hanover, Md. The 1.01 megawatt solar installation covers nearly 175,000 square feet of roof space, larger than three football fields.

The zero-emission, silent photovoltaic system will generate approximately 1.2 million kilowatt-hours (kWh) of electricity per year, and 21 million kWh during the initial 20 years of the project. The solar installation was financed, built and maintained under a power purchase agreement with SunEdison. Under the PPA, Staples will purchase the electricity produced for the term of the contract.

Company officials said the solar-power system is the latest example of its ongoing commitment to environmental leadership. The solar-power system will help reduce the retailer’s operating costs, while freeing up more electricity during peak times for use by local homes and businesses.

The SUBWAY® restaurant chain again has been named the No. 1 franchise opportunity, as well as the No. 1 global franchise opportunity, for 2010 in Entrepreneur magazine’s annual "Franchise 500" rankings.

The ranking marks the 17th time in the past 23 years the chain has received the honor. Contributing to the brand’s growth is its ability to find new markets and adapt to unique locations, the magazine reports. The strategy has allowed SUBWAY® to be found in spaces where competitors just could not fit or found impractical.

For example, a multi-unit SUBWAY® franchisee in the New York City area will have his store located on top of crane, rising alongside the construction of One World Trade Center – also known as the Freedom Tower.

This past year, SUBWAY® operated more than 32,000 locations in 90 countries, making it one of the world's largest restaurant brands in terms of number of locations.

--Posted January 19, 2010

Write it down: 2010 executive
retreat schedule set

If you’re looking to build strong relationships with key industry decision makers, the Commercial Construction Executive Retreats are the place for you. Our events provide: high-level conversations on issues and trends driving your business (roundtable discussions); diverse relationship building activities (think golf); and evening networking events (dinner and cocktails).

This year’s retreats are:

Retail Retreat
September 23-26, 2010
The Broadmoor
(Colorado Springs, Colo)

Hospitality Retreat
October 21-24, 2010
Barnsley Gardens
(Atlanta, Ga.)

For more information on attending one of these events, e-mail Editor Michael J. Pallerino at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it For more information on sponsorship opportunities, contact Publisher David Corson at 770-781-2501 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it