Convenience Stores
In this section, we explore the convenience store markets in 2024 and provide predictions for the sector in 2025.
Market Overview
In 2024, convenience stores remained a solid investment opportunity for buyers, due to the needs-driven basis of the sector, with the number of stores sold by Christie & Co having increased by 20% compared to 2023. Additionally, the average sale price of a convenience store increased by 21% between 2018 to 2024, with an average of ten viewings per sale, reflecting the strong demand within the sector.
The sector faced several operational challenges including rising retail crime rates, as recorded by the Association of Convenience Stores, and increasing restrictions on products such as vapes, tobacco and unhealthy food items as announced in the Government’s Autumn Budget.
Despite these challenges, there have been increasing opportunities created for independent buyers in 2024. Rising operator costs and the resulting divestments from major corporates have allowed for more transactional activity from a wider pool of buyer types in the convenience market.
Steve Rodell
Managing Director – Retail & Leisure
Key Market Trends
As of 31 March 2024 compared with figures taken on 31 March 2023:
Average Sale Price by Year
Market Predictions 2025
- Retailers will face increasing costs as a result of measures outlined in the Budget, and this will affect wages in particular. This has the potential to cause an increase in retail prices, however, as convenience stores are needs-driven, consumers will accept the rises
- Retailers may be less inclined to hire more staff as a result of increasing National Insurance (NI), National Living Wage (NLW), and National Minimum Wage (NMW), as announced in the Budget
- Due to increasing Government restrictions on products such as vapes, tobacco, high-fat items and high-sugar items, suppliers will have to adapt their offerings to fit requirements or sellers will have to look at offering new products
- It’s unlikely that there will be a reduction in demand for sites, but purchasers will most likely factor these cost increases into their price offers
- Divestments from corporate multiple retailers are expected to continue as they continue to see costs go up
Case Studies
Project Smith, Midlands
A regional corporate disposal of 16 convenience stores predominantly in the Midlands. The majority of these were freehold and there is a staged completion through to the end of February.
Project County, South and Midlands
Instructed to market a total of 23 convenience stores by Midcounties Co-op. This is an ongoing divestment project. We completed on seven of the sites in 2024.
Project Rams, North of England
Instructed on a group sale of leasehold branded convenience stores in the North of England from DB Ramsden & Co, of which six stores were sold in 2024 following high levels of interest.