Boom in big-box retail construction

According to an article in USA Today, there is a "big-box" spending spree" occurring in retail development. The article states that "while overall commercial construction spending has been down, construction of big-box stores for discounters such as Staples and Wal-Mart is booming." The growth is attributed to the shift in retail away from indoor malls, toward outdoor shopping centers. Ira Kalish, global director at Deloitte Research, a division of consulting firm Deloitte, says, "There is a plethora of non-traditional development taking place. So rather than the mall anchored by department stores, we're seeing big-box specialty stores anchoring outdoor shopping centers." In November (the latest complete month for data), construction in the general merchandise category was up more than 20 percent from the prior year, proceeded by a double-digit gain in October as well. Building for indoor shopping malls fell 11 percent in November, according to the U.S. Commerce Department. Wal-Mart plans to add 306 new U.S. stores in 2004, Lowe's plans to add 140, Target expects to add around 100 and Staples is targeting around 90 new stores this year.