Key Takeaways from ICSC+CENTERBUILD
Our President, Steve Olson, AIA, NCARB, and Business Development Director, Mike Pothast, recently attended the ICSC+CENTERBUILD conference in Arizona. This conference focuses on retail and real estate professionals dedicated to planning, developing, designing, and constructing shopping centers, retail stores, and retail-focused developments. This event is always a relational opportunity, and we continue to build on trust and develop deeper relationships.
There were several strategic and practical considerations in an industry filled with caution and uncertainty going into 2024. But retailers are a resilient and creative group, and where there are opportunities to innovate and move forward, they will find them. They will continue to focus on existing store conversions and remodel work, and in doing so, will enhance the overall customer experience, modernize the retail space, and optimize operational efficiency.
Remodeling existing stores is often more capital-efficient than building new ones from scratch. It allows companies to optimize their existing physical assets, making cost-effective improvements to enhance the customer experience or update the store's aesthetics without the high costs associated with new construction.
Investing in the conversion and remodeling of existing stores can provide a faster return on investment (ROI) than building new locations. The groundwork, infrastructure, and customer base are already in place, allowing retailers to realize the benefits of their investments more quickly.
Customer Retention and Loyalty
Remodeling existing stores can be a way to refresh the brand, create a modern and inviting atmosphere, and adapt to changing consumer preferences. This can contribute to customer retention and loyalty and attract new customers who appreciate the updated and improved store environment.
In uncertain economic times or concerns about potential interest rate changes, focusing on existing stores can provide a level of stability. Retailers may prefer to invest in projects with more predictable outcomes, especially when considering the potential risks associated with new construction projects
Prioritizing existing store conversions and remodeling stores in collaboration with self-funded retailers represents a strategic decision that harmonizes financial prudence, operational efficiency, and customer-centricity. This approach enables businesses to adeptly respond to dynamic market conditions while optimizing the utilization of their current assets. For inquiries regarding a partnership, reach out to Mike Pothast and establish a connection.