What's happening in the UK convenience store market?

What is the demand for convenience stores in 2025?

In the first half of the year, demand from buyers looking to acquire high-quality convenience stores across the UK has remained strong. Buyer numbers are exceeding the number of high-quality opportunities on the market, as operator acquisition plans seek to take advantage of robust trading fundamentals. Current supply is struggling to meet demand therefore it is an opportune time for anyone thinking of selling to explore their options and exit strategy.

In terms of transactions, it continues to be a ‘seller’s market’ with many store owners looking to retain and expand their businesses, and strong competition among potential buyers for the right sites. There is strong demand for high-quality, high-turnover stores and businesses which can be upscaled with some investment.

We valued or advised on convenience stores with a combined value of £88 million in the first half of the year, and convenience stores on the market with Christie & Co attracted an average of nine viewings per site, demonstrating the appetite in the market for these assets.

How are convenience store owners growing their businesses?

A common route we are seeing to achieve short-term growth - particularly if a store is unbranded or carries a perceived ‘weaker’ brand - is to partner with a supplier that has ‘symbol’ branding. Coupled perhaps with refurbishment and the introduction of the latest operating innovations, there can be quite an upward shift in sales and profitability.

We are also seeing a growing willingness from existing retailers to travel a little further afield to acquire the right business. Many stores are looked upon as being the heart of their local community, providing vital services for local residents - operators who leverage this and enhance profitability are likely to see an increase in value.

How are retailers responding to cost pressures?

Many convenience store businesses we work with are leasehold acquisitions, financed through cash resources, and as a result, fluctuations in interest rates are having a smaller impact compared to freehold transactions where borrowing is more commonly required.

As with all retail subsectors, it remains to be seen how higher operating costs reflected in management information and accounts are going to impact the pricing of convenience stores. However, in the face of these cost pressures, we are seeing operators employ innovative tactics to reach new customers and build loyal followings.

Many are turning to social media to reach the younger generation. Earlier this year, at the Association of Convenience Stores conference, it was discussed that around 53% of Millennials and Gen Z find out about new products through social media platforms such as Instagram and TikTok, thus presenting a vital opportunity for retailers to embrace young people amongst their staff to build and strengthen their social presence and attract the next generation of local customer.

What’s likely to happen in the convenience retail market in the second half of the year?

We predict that demand for convenience stores will continue to exceed supply, and as a result, competitive offers will drive pricing, with store values likely to increase.

It is expected that corporate operators will continue ‘churning’ estates, and independent buyers will grow and create more small multiple groups.

Our recent activity

We have completed on the sale of over 60 convenience stores, newsagents, off licences and post offices across the UK so far this year, including:

• Foleys Premier Store, Essex – Sold to experienced retailer couple, funded through Christie Finance

Located in a busy residential area in Dovercourt, Foleys stocks and sells a range of convenience items, confectionary and essentials, benefitting from heavy local and passing trade.

The store had been owned and operated by couple Tony and Lorraine Foley for 24 years, who recently sold the business as they planned to retire.

Following a confidential sales process, the store was purchased by experienced retailers and couple Nishanthan Alfred and Pauline Fernando, who plan to integrate themselves with the local community and build on the well-established business Tony and Lorraine have left behind. To find out more about the sale, click here.

• Budgens of Stock, Essex – Sold to experienced operator, insured through Christie Insurance

Centrally located in the village of Stock, the Budgens-branded convenience store was previously owned and operated by brothers, Liam and Dan Panormo, who sold the business to focus on their petrol forecourt businesses.

The store has been acquired by Goran Raven, an experienced petrol filling station operator, who plans to build on the work Liam and Dan have done and add to the fresh fruit and vegetable range. To find out more about the sale, click here.

• Costcutter School Lane, Lancashire – Sold to regional operator, funded through Christie Finance

After 66 years of family ownership, this popular convenience store in Leyland has been acquired by an experienced regional operator who manages a collection of established stores across the region and plans to continue the success of the store. Former owners David and Margaret now wish to enjoy a well-deserved retirement.

You can read more about the sale here.

• Watton Edwards News, Norfolk – Sold to experienced local operator

This traditional village newsagents and post office has been owned and operated by Deven and Chandi Changela for nearly ten years, who decided to sell the business to focus more on family and other business opportunities.

The store has been purchased by Ketul Desai, an experienced local operator who owns other stores in the region.  To find out more about the sale, click here.

For more insights into the market, read our Retail Market Review 2025 here.

For a confidential chat about your convenience store property, disposals or acquisitions, contact Mark Kaluza at mark.kaluza@christie.com or +44 7764 241 353