Abstract
Interior design expenditure can positively affect the sales of retailers. It has a value that extends beyond the perceived impact. It has economic value. That is the key finding of this study, which measures the economic value of interior design by determining the effect of interior design expenditure on retailers' sales. This study presents new knowledge on the economic effect of interior design on apparel retailers in a South African context. For a retailer to remain relevant and to thrive in a declining economy, interior design strategies should be considered a key role player in the value chain. However, the value of retail design, and by extension interior design, has been considered by both retailers and interior designers as merely perceived and not of economic value (Heskett, 2017). The lack of understanding of the economic value of interior design has resulted in hesitancy by retailers to invest in or spend money on interior design (Heskett, 2017). The gap in the knowledge of the economic value of interior design is partly due to the misconception that interior design's value can only be measured qualitatively and the inability of interior designers to communicate their role in the value chain of a company. This study intended to determine whether interior design’s value can be measured quantitatively by determining whether interior design expenditure has an economic effect on the sales of South African apparel retailers. The study is quantitatively positioned in a positivistic research philosophy with a deductive ontological approach. An experimental research strategy was used in theory but was adapted to meet the objectives of this study. The study has a premise that interior design does have economic value and that the value can be statistically and quantitatively determined. This study first determined that a statistical relationship exists between interior design expenditure and sales through a correlation analysis. The relationship was then determined to be positive and significant by means of running a regression model. To further test the effect of interior design expenditure on retailer’s sales, this study found that interior design expenditure has forecasting properties. The determined forecasting properties of interior design make further studies on the effect of interior design expenditure on projected sales possible. iii The results of this study provide a platform from which interior design can be deemed as economically valuable. The results of the study provide a gauge for investors, retailers, business owners and retail managers to measure the economic value of interior design and therefore make well-informed decisions regarding investing in interior design. In addition, the quantitative nature of the results enables interior designers to more accurately communicate the value of their role, as the value can be related to profitability and therefore accepted and understood by business owners and retailers. Although the study provides information on apparel retailers in South Africa, a wider application of the results and conclusions can be established on the economic value of interior design in other retail industries.
M.A. (Design)