Demand for new stores outstrips supply

Demand for convenience stores is expected to con­tinue outstripping supply this year, according to Christie & Co.

In the property agent’s annual report, published last week, it reported a 31% uplift in aggregate offers compared with this time last year, with in­struction viewings going up by 17%, reinforcing the popularity of the sector as a good investment.

Speaking to Better Retailing, retail managing director Steve Rodell confirmed “long-term demand remains on an upward trajectory”.

He added: “On the whole, it’s clear retail­ers are able to grow their stop-line turnover to com­bat economic pressures, including inflation, rising utilities and minimum wage increases. Other sectors are ham­strung by discretionary spending, but goods sold in convenience are driven by needs or habits.”

The report goes on to state that demand is strongest for mid-to high-turnover stores, those gener­ating sales of £25,000 per week or higher, and buyers are willing to pay premiums for these high per­forming sites.

“Retailers can take huge confidence from the fact that there isn’t any slowdown in demand for the businesses they are running,” added Rodell.

“It doesn’t tend to be about the location of the site, but rather what the business is turning over.”

Speaking at an event celebrating Christie & Co.’s end-of-year results, Rodell said: “The retail [sector] that we deal with is robust, and it’s good sense [to be involved in it.] Looking into 2024, I think we’ll continue to see demand exceeds supply in the retail market, and this is pretty well documented.”

He continued: “On the forecourt side of things, there still aren’t enough vehicles on the road to make a big difference, [in terms of] the level of fuel volumes that people are buying at the moment.”