The average store remodel costs $707,179, according to the NACS State of the Industry Report® of 2023 Data. This is a decrease from the average cost of $765,704 in 2022.

Retailers were also slightly more likely to remodel their stores than in recent years—the interval between remodels declined from 12.6 to 11.6 years.

The percentage of stores remodeled increased from 2.3% to 2.8% in 2023, and the percentage of stores remodeled in the last five years increased from 28.5% to 30.8%—the second-largest percentage in the last five years.

Retailers looking to expand existing stores or build new stores rather than remodel current ones face different costs depending on where they choose to build. Typically, urban investments require a larger capital investment when compared to their rural counterparts.

In 2023, retailers experienced a bit of relief from skyrocketing construction costs, and merchandise equipment costs were down from 2022 for both urban and rural sites.

The latest numbers will be released with the NACS State of the Industry Report® of 2024 Data in June.