Demand for convenience stores remained at an all-time high and continued to outstrip supply in 2021, a new report from business property adviser Christie & Co reveals.
The company’s annual Business Outlook report – Business Outlook 2022: Adjust, Adapt, Advance – shows its retail team sold 60% more convenience stores than they did in 2020 and 70% more than 2019.
Average prices increased by 5.9% year-on-year, the report reveals.
Over the past five years, there has been a 50% increase in the number of offers achieved for each business. This has accelerated in the past two years, which is likely a result of the heightened profile of convenience as an essential service since the beginning of the pandemic, the company said.
In addition, the report outlines Christie & Co’s market predictions, which are:
Operational headwinds could impact trading performance – particularly for the large multiple operators.
Large operators will continue to churn – acquire better stores and sell underperforming ones, providing further opportunity for independents.
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-to-go and coffee-to-go.
Steve Rodell, Managing Director of Retail at Christie & Co, said: “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.”
