We are the leading agents, valuers and consultants in various specialist sectors that involve operational real estate. As the pre-eminent experts across the Convenience Retail market, we are proud to work alongside trade organisations including the Association of Convenience Stores (ACS). If you are interested in finding out more about our convenience stores for sale, get in touch with us.
Steve Rodell MRICS
Managing Director Retail
020 7227 0759
The convenience retail sector saw massive changes in 2017. The major grocers sought alternative routes to income to combat the continued rise of new Aldi and Lidl openings, along with the growth of online shopping.In January 2017, Tesco announced its proposed merger with Booker Group. This consolidation of the largest grocery retailer and largest retail wholesaler received approval from the Competition and Markets Authority in mid November 2017.
It is too early to say what direct impact this will have on the retailers supplied by Booker, but many hope the added buying power of the newly created wholesale behemoth will somehow help them mitigate rising operating costs with better buying terms.
Some have tried to tackle falling market share by boosting their convenience credentials, some looked to expand their presence in forecourts through franchising, while others sought out a new direct channel to market through independent retailers.
Retailers will continue to have to innovate what they sell to combat the higher overheads that are coming as a result of the National Living Wage and inflation – particularly in the food market. Food-to-go is now growing 16 times faster than grocery, and expected to account for £21.7bn in sales in the UK by 2021. M&S Simply Food and Little Waitrose have both been at the forefront of harnessing this trend. The success of retailers such as Eat 17, an award-winning independently owned group that effectively fuses dining and food shopping, is likely to encourage others to evolve the convenience model. Indeed, exactly this type of concept would be welcomed in our rapidly changing town centres, where retail is being replaced by residential properties.