Convenience Retail sector is best placed to weather headwinds in 2023
Specialist business property adviser, Christie & Co, has today launched its annual Business Outlook report, ‘Business Outlook 2023 Finding Clarity’, which reflects on the key market activity, trends and challenges of 2022 and forecasts what 2023 might bring across the industries in which Christie & Co operates, including the retail sector.
The report outlines that despite the economic challenges facing most businesses, buyers did not appear to be deterred by any short-term decline in consumer spending and the demand for convenience stores remained strong throughout 2022. As a result, Christie & Co’s Retail team sold 41% more convenience stores than it did pre-COVID and subsequently recorded a 1.5% rise in its retail price index for 2022.
According to key market insights included in the report, buyers continued to outstrip the number of stores available, which often resulted in competitive bidding and an average of 7.5 offers for each business. This figure has been steadily increasing over the past few years.
The report also notes that whilst some of the larger corporates have scaled back their new development plans, they continue to churn their portfolios which provides a fantastic opportunity to the wide pool of independent buyers seeking sites, with profitability and growth potential becoming key considerations in light of increasing operational costs.
Looking to the year ahead, the report also outlines Christie & Co’s market predictions which are:
- The threshold for a viable corporate business has increased again, leading to more and better-quality corporate divestments. This presents an acquisition opportunity for independents
- All sellers will need to be realistic about pricing, to reflect the performance of their business and a new cost base
- Price expectations will be a key focus for 2023
According to Christie & Co, consumers have undoubtedly become more conscious of their overall expenditure, yet convenience retail is arguably better placed than other industries to weather 2023’s anticipated headwinds as they offer essential local services.
Steve Rodell, Managing Director of Retail at Christie & Co comments, “We enter 2023 on the back of a very busy 2022, when activity levels surpassed modest expectations which were set during the Covid years. Appreciating the economic climate, we are very encouraged by the healthy number of deals we are taking into this year.”
Click the link below to read the full report and watch the exclusive interview with Steve Rodell, Managing Director - Retail and Peter Batt, Managing Director of Nisa Retail.
‘Business Outlook 2023: Finding Clarity’.
For further information on this press release, contact:
Bronte Hughes, Corporate Communications Manager
P: 020 7227 0794 or E: bronte.hughes@christie.com
