Demand for convenience retail remains at an all-time high
Specialist business property adviser, Christie & Co, has today launched its annual Business Outlook report, ‘Business Outlook 2022: Adjust, Adapt, Advance’, which reflects on the themes, activity and challenges of 2021 and forecasts what 2022 might bring across the industries in which Christie & Co operates, including the convenience retail sector
The report notes that COVID-19 continued to positively shape business values and transactional activity across the convenience retail sector in 2021. Demand for assets remained at an all-time high and continued to outstrip supply, including markets where there was historically less demand. This resulted in a continuation of the rise in our index seen over the past few years, with average prices in 2021 increasing by 5.9% on the previous year.
Key data included in the report revealed that transactional volumes continued an upwards trajectory, resulting in Christie & Co’s team of retail experts selling 60% more convenience stores than they did in 2020 and 70% more than 2019.
Over the last five years, there has been a 50% increase in the number of offers achieved for each business we market. This has accelerated in the last two years which is likely a result of the heightened profile of convenience as an essential service since the beginning of the pandemic.
Looking to the year ahead, the report also outlines Christie & Co’s market predictions which are:
- Demand will continue to exceed the supply for retail opportunities
- Operational headwinds, including inflation of staff wages, fuel and food prices, along with supply chain issues could impact trading performance – particularly for the large multiple operators
- As this evolves, large operators will continue to churn - acquire better stores and sell underperforming ones, providing further opportunity for independents
- We expect to see further consolidation as supermarket brands explore how to penetrate convenience further through supply deals, franchising and perhaps further deal activity
- Fuel retailers will likely focus on diversifying their income and develop alternative fuel offers such as car washing and food / coffee to go
- Christie & Co will conclude several garden centre deals having reinvigorated activity in this sector
Steve Rodell, Managing Director of Retail at Christie & Co comments, “Last year was unexpectedly positive and these buoyant transactional volumes reflect the success of convenience in the face of uncertainty. For our team of retail experts to conclude 70% more transactions than pre-Covid in 2019 is phenomenal and testament to how hard everyone has worked to service their client base.
Retail saw winners and losers in the last year. Most retailers have benefited from increased sales because of the changes in consumer behaviour. However, rising inflation will present a number of real challenges – especially for independent operators who’s infrastructure may not be so well equipped to absorb large increases in the cost of goods, utilities and wages.”
Click here to read the full report, ‘Business Outlook 2022: Adjust, Adapt, Advance’.
Go straight to the retail section and view the Retail Interview with MD of Retail, Steve Rodell and special guest Gordon Balmer, Executive Director of Petrol Retailers Association HERE.
For further information on this press release, contact:
Bronte Hughes, Corporate Communications Executive
P: 020 7227 0794 or E: email@example.com