Christie & Co re-affirm longevity of the forecourt market in report
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 petrol filling stations.
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The report notes that trading conditions at UK petrol filling stations (PFS) bounced back well in 2022, with average diesel and petrol volumes reaching 92% of pre-COVID levels. Although retailers were also grappling with rising cost pressures and turned to fuel pricing and shop margins to maintain profitability.
The looming ‘Road to Zero’ and 2030 deadline remained a hot topic in 2022, however Christie & Co research indicates this is having little effect on buyer appetite for PFS businesses, with BEV’s representing 2.5% of total vehicles on the road and 15% of all new car sales as of December 2022.
In fact, Christie & Co’s Retail experts estimate it will take until the 2040s for the number of BEV’s on the road to overtake fuel and diesel cars, demonstrating the longevity in the PFS market.
Buyers continue to look favourably at petrol stations and sites sold through Christie & Co in 2022 achieved an average of five offers per transaction, reflecting the strong ongoing demand. This caused a 1.5% increase in Christie & Co’s retail price index for 2022.
The growth of other income streams such as ‘fast-moving convenience goods’ was also identified in the report as a key trend shaping the market, with 88% of the UK’s PFS now featuring a retail offering, 31% of which are a full convenience store.
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 petrol retailing 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 Executive
P: 020 7227 0794 or E: bronte.hughes@christie.com