Supermarket construction on the rise says Glenigan

According to Glenigan, more than GBP500 million worth of supermarket construction projects have started on site so far this year with supermarket projects accounting for 69 per cent of this figure.

James Abraham, economist, Glenigan, commented: "Retail looks likely to deliver badly needed growth prospects in construction over the next eighteen months".

"There has been strong growth in the underlying value of planning approvals this year coupled with favourable trading conditions (retail sales were last month up 3.4 per cent on a strong June 2009 - British Retail Consortium)".

Sainsbury's increased profits to GBP610 million last year, from GBP220 million five years ago, according to a company spokesperson.

Much of this increase is being invested in expanding their network of stores.

Mr Abraham commented further: "Supermarket projects will ensure that as government funding fades away, and other sectors remain bogged down by lack of investment, retail construction will remain well up on 2009 levels".

The decision by Land Securities to restart the 750,000 sq ft, GBP350 million retail development, Trinity Leeds, was a significant boost.

Francis Salway, chief executive, Land securities, said that the project is being restarted at a time where his company could reap the reward of lower costs.

Back to top