Opportunity for independents as multiples ignore low-turnover sites
Stores with a low turnover looking to sell must show there is “opportunity” in their site, according to Christie & Co’s head of retail, Steve Rodell.
The comments follow a report by the business property experts that showed larger groups are increasingly requiring stores to have sales of £20,000 per week to be considered for acquisition.
Rodell told betterRetailing: “There is still a market for stores turning over £10,000 a week, but there has to be an opportunity for buyers.”
Christie & Co stated in the report that the weekly sales requirement represents a change in approach from larger groups, who previously considered low-turnover sites that had the potential for improvement.
However, a major independent convenience group and acquirer of sites told betterRetailing gives independents access to sites that may have previously been snapped up by multiple convenience chains.
“There’s a positive in that the various Co-op societies and multiples are only looking at sites with a far higher threshold, it gives independent operators a rich stream of potential sites that may have otherwise been hard to acquire,” they said.
“It opens up opportunities to acquire those sites with sales of £12,000 and under that you know with a couple of tweaks could be doing £30,000.”
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