Convenience store buyers did not appear to be deterred by any short-term decline in consumer spending and demand for stores remained strong throughout 2022, a new report from Christie & Co reveals.
The ‘Business Outlook 2023 Finding Clarity’ report reveals Christie & Co’s retail team sold 41% more convenience stores than it did pre-Covid and subsequently recorded a 1.5% rise in its retail price index for 2022.
Key market insights included in the report reveal buyers continued to outstrip the number of stores available, which often resulted in competitive bidding and an average of 7.5 offers for each business. This figure has been steadily increasing over the past few years.
The report also notes that while some of the larger corporates have scaled back their new development plans, they continue to churn their portfolios which provides a fantastic opportunity to the wide pool of independent buyers seeking sites, with profitability and growth potential becoming key considerations in light of increasing operational costs.
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.
Steve Rodell, Managing Director of Retail at Christie & Co, said: “2022 turned out to be a very busy year for our team, with activity levels surpassing modest expectations which were set during the Covid years.
“We are very encouraged by the healthy number of deals we are taking into this year and feel confident that the sector will remain resilient despite the challenging economic climate.”
