Convenience store market update

By Altius Group

16 Jun 2021

shutterstock_534379696.jpg

Kings Business enjoyed a successful start to 2021, particularly in the convenience store with record high levels of interest and viewing enquires. As the sector thrives, we answer the questions currently on buyers and sellers minds.

What level of interest is Kings seeing in convenience businesses at the moment?

Kings has seen a surge in demand for opportunities in the convenience store sector, with high volumes of enquiries being received with viewing requests and strong offers received.

What is driving the increased interest in the convenience market from buyers?

There has always been a demand for this type of property in the retail sector but, due to the pandemic, buyers have seen the importance of convenience stores. The sector performed well during lockdown and created initiates such as expanding their food ranges. Many stores also began to offer delivery in their local area which increased the accessibility of the store.

Has the pandemic changed what buyers are looking for in a convenience store in terms of location, type or services?

Not that Kings have seen. There has always been a preference to branded stores, such as Nisa and Premier Stores, with at least 20,000 ft of shop space. Buyers also look for stores in attractive residential properties that will attract high footfall.

What type of convenience site is most in demand?

All types of convenience sites have seen an increase in demand across the country.

Is demand being driven by people looking to get into the sector, or shop owners buying additional sites?

The demand is being driven by both new and experienced buyers. Currently we are seeing many first-time buyers who are looking to acquire convenience stores and off-licenses alongside experienced buyers, who are already owners, who are looking to acquire additional premises.

What is happening to the valuation/selling price of convenience businesses?

Currently convenience stores are receiving offers that are in or around the asking price due to the competition for businesses. Previously, some discounts were taking place.

Whilst the convenience sector has flourished (on the whole) during the pandemic, the opposite is true for nearly all other retail sector. What impact have the challenges in the wider market had on the convenience sector?

Many retail businesses had to close due to lockdown or limit their operating hours which saw customers begin to rely on convenience stores. Additionally, many other retail businesses have been unable to open due to ongoing restrictions.

We’ve heard of convenience store owners struggling to secure finance for acquisitions/refurbishments of convenience stores because finance firms see retail as a whole as high-risk due to the pandemic, have you seen much evidence of this?

At Kings, we have seen many business owners using government introduced schemes, such as bounce back loans, to refurbish convenience stores. In addition to this, many buyers are taking advantage of the CBILS loan and use the loan for new acquisitions, so we have not seen much evidence of any struggle to secure finance. Furthermore, there has been an overall increase in liquidity, with banks being more forthcoming towards acquisition proposals and interest charged on debts at historic lows.

The Post Office’s CEO Nick Read admitted that the Horizon Scandal has damaged demand for Post Office sites, making it hard for some PO retailers looking to sell. Have you noticed this previously and has there been a return of demand since steps were taken to address the scandal?

The scandal has caused extreme distress to loyal post masters and mistresses but, since the resolution of the saga, there has been a spike in those looking to invest in post offices. The only issue at the moment is the time it takes to process new applications by the Post Office.

If you have any further questions, or would like any advice on acquisition opportunities, contact our industry-leading experts on 01772 775 775.

Latest news

1

Trio of client wins for Door4 Leon Calverley

Trio of client wins for Door4

21 Nov 2024

2

University-led £4.9 million initiative to turbocharge North West England’s cyber ambitions The data immersion suite at Lancaster University

University-led £4.9 million initiative to turbocharge North West England’s cyber ambitions

20 Nov 2024

3

Staci UK earns Great Place to Work certification, amid major expansion plans Staci UK Fulfilment teams

Staci UK earns Great Place to Work certification, amid major expansion plans

20 Nov 2024

4

Harrison Drury merges with specialist Merseyside law firm John Chesworth, Adele Spence, John Osborne

Harrison Drury merges with specialist Merseyside law firm

20 Nov 2024

5

Better transport links are key if Lancashire is to drive up productivity Katie Day strategy director at Transport for the North

Better transport links are key if Lancashire is to drive up productivity

19 Nov 2024

PC PrestonMacan GIF980x120
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:00 - 16:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
11 Jun 2024 - 04 Dec 2024

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 16:30

Skills Bootcamp in Procurement - Cohort 2
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Seminars
15 Oct 2024 - 17 Dec 2024

Skills Bootcamp in Procurement - Cohort 2

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Blackburn & Darwen Youth Zone Quiz Returns for 10th Year!
Quiz Pic.jpg.jpg
LBV Hub Fundraisers
21 Nov 2024 - 21 Nov 2024

Blackburn & Darwen Youth Zone Quiz Returns for 10th Year!

Accrington Stanley Football Club, Accrington, BB5 5BX

17:00 - 20:30

Emergency First Aid at Work
Chamber Logo1.png.png
LBV Hub Seminars
21 Nov 2024

Emergency First Aid at Work

FGH Training, 3rd Floor, Storey House, White Cross Business Park, Lancaster, LA1 4XQ

09:00 - 05:00

SPARK The Apprenticeship Marketplace
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
21 Nov 2024 - 21 Nov 2024

SPARK The Apprenticeship Marketplace

University of Central Lancashire, Preston, PR1 2HE

09:30 - 13:00

NLP Diploma Foundations
nlp nov 24.png.png
LBV Hub Seminars
22 Nov 2024 - 24 Nov 2024

NLP Diploma Foundations

Unlocking Possibilities training venue, 166 Waterloo Road , Blackpool, FY4 2AF

09:00 - 17:00

Lancashire Business Day 2024
231124LBVLancashireDayEventweb 5782
Networking
22 Nov 2024

Lancashire Business Day 2024

Blackburn Rovers Football Club, Blackburn, BB2 4JF

12:00 - 17:00

CQI and IRCA Lead Auditor Training Course ISO 9001 – Quality Management Systems (QMS) - REMOTE
IRCA-Certified-Course.jpg.jpg
LBV Hub Webinar
25 Nov 2024 - 29 Nov 2024

CQI and IRCA Lead Auditor Training Course ISO 9001 – Quality Management Systems (QMS) - REMOTE

Via MS Teams Link - RKMS Group , Blackpool, FY4 2DP

09:00 - 17:00

Preston Freelancer Meet-Up
Freelancer-Meet-Up-Nov.png.png
LBV Hub Networking
26 Nov 2024 - 26 Nov 2024

Preston Freelancer Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

10:00 - 11:00

Chamber Breakfast Networking
Chamber Logo.jpg.jpg
LBV Hub Networking
27 Nov 2024 - 27 Nov 2024

Chamber Breakfast Networking

Lancaster Golf Club, Ashton Hall, Lancaster, LA2 0AJ

08:00 - 10:00

Kickstart Networking - End of Year Celebration
Gold White Simple Christmas Party Instagram Post (Square).png.png
LBV Hub Networking
29 Nov 2024

Kickstart Networking - End of Year Celebration

Esc CC, Clitheroe, BB7 2DA

17:00 - 21:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV118 Online Graphic
Subscribe now

Weekly news bulletin