Specialist property adviser Christie & Co has just launched its Retail & Leisure: 2024 Mid-Year Insight report, which reflects on the activity, trends and challenges across the UK’s retail markets in the first half of 2024, as well as providing an outlook for the rest of the year.
Alongside various other retail sectors, the report’s outlook for convenience suggests the positive business environment experienced in 2023 carried on into the first half of this year - and this looks set to continue.
Additionally, the report says the lending environment remains fluid - albeit a little more expensive than in previous years - and that lenders have continued to look favourably at convenience retailers’ assets due to the buoyancy of the market, which has helped to drive deal volumes.
The report also reveals that 2024 was characterised by strong demand for high turnover stores with experienced operators want to expand their portfolios and managers want to buy their first store. This illustrates the strength of demand for needs-driven convenience retail and that the sector is a solid industry in which to invest.
It highlighted increased store theft, competition from discount retailers and uncertainty around the tobacco and vape category as challenges but advised that softening utility costs, decelarating food price inflation and local shopping habits have helped the sector.
Managing director of retail & leisure Steve Rodell said: “We have successfully navigated through some uncertain macro-economic waters in the last two years. We knew activity was on the rise in H2 2023, and 2024 has continued in the same vein.”
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