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Data reveals differences in how the retail industry approaches cleaning
Dallas, TX\ – The Professional Retail Store Maintenance Association (PRSM), ), the authority on retail, multi-site facilities management, has released results of its 2013 Benchmarking Report on retail janitorial services indicating that cleaning is an area where the industry has begun to organize with greater uniformity and attention to sustainable best practices.
The survey data shows that the average annual spend of janitorial services for retailers is $0.81 per square foot, compared to the median spend of janitorial services of $1.44 per square foot by other commercial building management. In total, the survey indicates retail companies spend on average 21 percent of their total repair and maintenance budget on janitorial and floor care services.
When it comes to budgeting, the primary driver in determining the overall janitorial spend is store sales volume, followed closely by overall square footage and an equal distribution of budget dollars for janitorial across all facilities.
From a sustainability perspective the research shows janitorial services are more closely aligned with retailers’ Corporate Social Responsibility (CSR) plans than in years past, especially in the area of “green cleaning.”
(This chart shows approximately one-third of retailers have a Green Cleaning Policy in place and that approximately one-third of janitorial providers are required to adhere to the policy.)
Regarding the nature of retail contracting for janitorial services, the study reveals that, while the majority of retailers are using some form or combination of janitorial services, nearly one quarter (24 percent), have no contracted janitorial maintenance in any of their stores. In addition, the findings indicate that a majority of retailers are using between one and three janitorial service providers, managed by a flat rate contract with a term of three years or less.
“The lack of contracted services may be a result of shrinking corporate FM teams trying to manage more properties with less internal resources to manage multiple vendors and time consuming RFP processes,” said Patricia Dameron, Executive Director, PRSM Association.
For verification of work, primarily the larger box retailers are using advanced technology, such as Interactive Voice Recognition, to have vendors check in and check out. In fact, 59 percent of participating retailers require no service verification at all.
During a PRSM2013 National Conference session last April on Sourcing in Retail, retail facilities managers discussed a wide range of strategies and approaches to contracting for maintenance, including janitorial.
One retailer shared his company’s three-year strategy on most contracting. “Three years is about the right amount of time, we believe, for most services,” the retailer said. “It gives the vendors time to put things in place to serve us, but with contracts that are labor intensive, such as housekeeping, we try to lock in longer to control costs.”
Survey Demographics and Methodology
Study participants reflect PRSM Association member composition, as well as of the retail landscape as a whole. More than three-quarters (76 percent) of the retailers are small or medium boxes (5,000 up to 50,000 sq. ft.), while 16 percent are identified as extra small box (less than 5,000 sq. ft.), with the remaining 8 percent being large or extra-large box (greater than 50,000 sq. ft.). Specialty retail is the largest retail sector among the respondents, at 68 percent, with the remainder being divided fairly equally amongst the apparel, general merchandise, banking and financial services, and “other” sectors.
The report is the product of the PRSM Association Benchmarking Task Force and is the latest offering in an ongoing series of benchmarking reports by PRSM on topics related to multi-site facilities management. Initially constituted in 2011, the Task Force is made up of retailers and vendors drawn from the Association membership, and has been charged by the PRSM Board of Directors to provide the most relevant benchmarking data available to its members, in keeping with the overall strategic direction of the Association. The first report produced by the Task Force, on retail HVAC costs and practices, was released at National Conference in April 2012, and provided insights on common retail HVAC repair and maintenance cost metrics (such as avg. cost per sq. ft. and avg. repair costs) and common HVAC maintenance and business practices. This latest report, on retail janitorial services, continues to support this strategy.
This report reveals findings from janitorial data collected in Q1 2013 from members of PRSM Association. To collect this data, a survey was designed (based in no small part on the CIMS standard developed by ISSA, www.issa.com/cims) to examine and evaluate the janitorial practices of retailers. The survey covers topics such as quality plans, sustainability initiatives, checklists, surveys and inspections, general maintenance practices, and financial and cost metrics. The response rate for the survey was 21 percent, well over the average response rate for most online surveys. The data collected as a result of this effort represents over 38,000 retail stores covering almost 600 million square feet of spaces. The response rate to the survey gives the report statistical significance, such that the results can be reported with 90 percent confidence, and less than an 8 percent margin of error.
For more information on the janitorial benchmarking study visit www.prsm.com/resources.
About the Professional Retail Store Maintenance® Association (PRSM)
PRSM Association, the authority on Retail and Multi-site Facilities Management, is the leading membership organization for retail facilities and vendor professionals. PRSM empowers the Retail Industry facilities management with best practices, benchmarking, education, discussion forums and trusted partnerships. Chartered in 1995, and with more than 850 member companies, the PRSM community values are founded on a spirit of innovation, resourcefulness, the quest for knowledge and ethical business relationships. Members depend on PRSM to help them achieve greater success and a competitive advantage through quality programs and resources.
