Retailer scrambles to drive down costs before new owner Wal-Mart takes over construction operations.
Leading client Asda has set its contractors tough cost and time targets to be achieved before its new owner Wal-Mart takes a hand in its property operations.

The targets are based on the performance of Japanese contractor Kajima, which impressed Asda earlier this year when its first job slashed the average construction period for a store by nearly 40%.

Mike Abel, general manager of research and development, said Asda鈥檚 three framework contractors would present proposals on beating Kajima鈥檚 savings next week. He warned that if these were not impressive, Asda would 鈥減ush the Kajima process on to everyone鈥�.

At Swansea, Kajima used prefabricated elements to complete a 9250 m2 store for 拢11.5m in 15 weeks 鈥� 39% faster and 5.75% cheaper than the similar-sized Gateshead store completed 18 months before.

It is understood that the Asda property department is keen to impress its new owner by driving down construction times and costs. Abel said Wal-Mart had yet to make a big difference to the way stores are procured, although it has already influenced Asda鈥檚 commercial policy.

Abel said that in the USA, Wal-Mart pays $45 (拢28) a square foot for its stores. In the UK, Asda pays more than three times that, about 拢100 a square foot.

One area in which the Asda property team is looking to save time and money is the roof structure. Abel is working on a portal roof system, so instead of raising a portal frame and then cladding it with metal roofing, the portal frame units are clad with metal before erection.

Wal-Mart has taken 13 000 m2 of warehouse space at Asda arm Gazeley Properties鈥� Magna Park, Leicestershire.

  • Nick Penny, Marks & Spencer鈥檚 long-serving divisional director for store development and estates, has moved to the firm鈥檚 marketing group. The firm鈥檚 construction and maintenance will now be run by David Williams, who is responsible for construction, design and procurement, and Chris Williams, who is responsible for property.

    Both worked under Penny.