Retail Professional Talks Production Costs, Supply-Chain Issues Ahead of ICSC

LAS VEGAS—As part as GlobeSt.com’s continued coverage of retail ahead of this month’s ICSC Las Vegas 2022 event here in Las Vegas, we spoke with experts about the market, trends they are seeing, what they are most looking forward to at the event and more. For one retail construction professional, we focused on supply chain disruptions and corresponding price increases that he is seeing for building materials and systems on a daily basis. 

“Higher production costs, labor shortages, transportation delays, and high demand have created a situation where items that once might have taken a month to arrive are now delayed for six months or even a year in some cases,” explains Bruno Hanelt, VP of construction at S&R Commercial. 

He tells GlobeSt.com that from proactive planning to alternative materials and creative design options, “retail construction professionals will need to continue to deploy strategies to minimize those supply-chain issues and ensure that projects are completed on-time and on-budget.”

In terms of other notable retail trends, Hanelt is also noticing continued interest in restaurant and pharmacy locations with existing or potential drive-thru service driven by the marketplace responding to evolving post-pandemic service models. “The drive-thru emphasis has gone very quickly from a preference to a priority, and we work with some well-known national brands that are now requiring new locations to include a drive-thru.”

An additional design trend on the restaurant side that he noted is a general reduction in interior seating areas in restaurants to increase back-of-house capacity and support an increase in pick-up and drive-thru orders–another pandemic-related shift. He also points out that premium and specialty locations “are driving demand as businesses work to build unique experiences to draw their customers back to their physical stores.”

Hanelt is looking forward to ICSC this year. He says it is “that unique event on the industry calendar where attendees enjoy the rare intersection of social engagement and professional development.” Business development is obviously a priority, he says, but it’s also a chance to connect with friends and peers from across the industry and around the country. 

He is particularly looking forward to getting a feel for market trends nationally, talking to both clients and competitors and getting a better sense for what they are seeing in their markets and their areas of specialty. “I am looking forward to picking their brains about the changes they see happening now and on the horizon.”

It remains to be seen what the 2022 experience in Vegas will be like, he adds, but says he is fascinated to see the ways in which this annual milestone conference feels and functions differently now than prior to the pandemic. “To what extent will this feel like we are closer to ‘back to normal,’ both in terms of the event itself and with regard to the ways we talk about retail construction going forward?”

Lastly, he adds that while he always learns so much about the state of the industry at ICSC, the stronger and closer relationships with friends, clients, and professional partners that the event brings is the greatest benefit. “The chance to forge new relationships that could have a lasting personal and professional impact for many years to come is rare and special, and this is one of the few opportunities to do just that.”

Keep checking back with GlobeSt.com for more exclusive coverage surrounding the upcoming ICSC event.