Britain’s supermarkets capitalise on growth of convenience store sector

Published on: 19th December 2017

In recent years we have seen a real resurgence in the strength of the convenience sector, with circa 50,000 stores across the UK the sector has been valued at £38billion, statistics from the Local Shop Report (which can be downloaded here).

The convenience market is widely viewed as a key driver of growth in the retail sector with market value expected to rise to £42billion by 2021 but how are the major UK supermarket chains reacting?

Paul Moody, specialist retail agent in our London office commented on the shift, “In recent years the convenience sector has experienced significant growth with shopping behaviours shifting towards consumers typically making smaller, but more frequent purchases as opposed to the more traditional weekly shop.

“In recent years, we have seen a variety of tactics deployed by the larger supermarkets with Tesco Express, Sainsbury’s Local, Co-operative Group, Morrisons and Waitrose all competing for market share. Many retailers have made the move to expand their convenience store offering, while some have decided to withdraw from the market all together.

“Most notably in 2015 Morrisons sold their 140 M Local convenience stores, while in more recent news the Co-operative Group have completed a takeover of Nisa Retail, a group owned by more than a thousand independent store owners, supplying over 2,500 outlets. The deal is expected to be approved by March”

In a recent article from the Retail Gazette the Co-op Food chief executive Jo Whitfield said the acquisition would provide an opportunity to create an even greater member-led presence within the UK’s convenience grocery sector.

Contact Us

Retail Agency

Our principal retail agency services include: Shopping Centre, High Street and Out of Town Retail Consultancy Disposals Acquisitions Innovative Marketing Solutions Development Appraisal Monitoring of retail requirements and trends Strategic Asset Management Strategy and Investment Funding   Our client base is spread across a wide spectrum of retailers, developers, investors and retail property owners and occupiers. With an established team of experienced focussed professionals our offices cover the whole of England and Wales and the Scottish Borders. We have an enviable reputation in the market amongst our clients and competitors alike. Each and every one of our clients is very important to us. We strive to work in partnership with our client to achieve the best possible results. To understand our client’s business and objectives is of huge significance and importance to us. Our appreciation of local market conditions and national retail trends helps us to achieve the best possible solutions to our client’s property issues. We are committed to achieving an innovative and multi faceted approach to our marketing of client’s retail property utilising both technology in all its complex forms and personal and direct communication with potential targets. We understand retailers and retail property.

Read More....

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Our principal retail agency services include:

  • Shopping Centre, High Street and Out of Town Retail Consultancy
  • Disposals
  • Acquisitions
  • Innovative Marketing Solutions
  • Development Appraisal
  • Monitoring of retail requirements and trends
  • Strategic Asset Management Strategy and Investment Funding

 

Our client base is spread across a wide spectrum of retailers, developers, investors and retail property owners and occupiers.

With an established team of experienced focussed professionals our offices cover the whole of England and Wales and the Scottish Borders.

We have an enviable reputation in the market amongst our clients and competitors alike.

Each and every one of our clients is very important to us. We strive to work in partnership with our client to achieve the best possible results. To understand our client’s business and objectives is of huge significance and importance to us.

Our appreciation of local market conditions and national retail trends helps us to achieve the best possible solutions to our client’s property issues.

We are committed to achieving an innovative and multi faceted approach to our marketing of client’s retail property utilising both technology in all its complex forms and personal and direct communication with potential targets.

We understand retailers and retail property.

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Retail Property Services

Our retail team deliver strategic property solutions to maximise on the potential of your business. As industry leaders, we understand retailers and retail property, and will deliver top results through our knowledge of local markets and national trends. We will keep your business objectives at the core of our work, ensuring you get maximum return on your investment, and benefit from a property solution designed specifically for your business. Retail property services designed with your brand in mind From finding you the right property, to negotiating your lease and business rates, or analysing your business assets, we provide a fully comprehensive property solution for anyone working in the retail sector. Contact our retail team and we'll put together a bespoke service plan to suit your requirements, no matter how big or small. Contact Us

Read More....

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Our retail team deliver strategic property solutions to maximise on the potential of your business.

As industry leaders, we understand retailers and retail property, and will deliver top results through our knowledge of local markets and national trends.

We will keep your business objectives at the core of our work, ensuring you get maximum return on your investment, and benefit from a property solution designed specifically for your business.

Retail property services designed with your brand in mind

From finding you the right property, to negotiating your lease and business rates, or analysing your business assets, we provide a fully comprehensive property solution for anyone working in the retail sector.

Contact our retail team and we'll put together a bespoke service plan to suit your requirements, no matter how big or small.

Contact Us

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Business Rates Autumn Budget Highlights

Philip Hammond, the Chancellor of the Exchequer, gave his first Autumn budget to parliament today and we have pulled together the headlines for business rates: Key Business Rates Highlights - Business rates annual increase to be based on CPI rather RPI brought forward to April 2018- Discount for pubs, with a rateable value less than £100,000, extended for a further year- After 2022 revaluation, future revaluations to take place every three years - Staircase tax to be axed

Read More....

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Philip Hammond, the Chancellor of the Exchequer, gave his first Autumn budget to parliament today and we have pulled together the headlines for business rates:

Key Business Rates Highlights

- Business rates annual increase to be based on CPI rather RPI brought forward to April 2018
- Discount for pubs, with a rateable value less than £100,000, extended for a further year
- After 2022 revaluation, future revaluations to take place every three years
- Staircase tax to be axed

[fulltext] =>

 Our Thoughts

Graham Isle, business rates expert in our Leeds team commented on today’s budget, focusing on the changes to business rates and how this will affect businesses across England and Wales.

“During the budget it was announced that from next April (2018) the annual rates increase will be based off the lower Consumer Price Index rather than the Retail Price Index. Before today’s announcement it had been promised that this change would be made in 2020 so it’s great to see the decision brought forward as early estimates indicate it could bring about a benefit of £2.3billion to small businesses over the next five years.

“It was also good to hear that following the next revaluation in 2022 the government plan to increase the frequency of revaluations from once every five years to once every three years. Moving forward this should ensure that business rates bills are more in line with properties market value and enable fairer bills to be generated.

“There was also welcome news for thousands of businesses occupying workplaces split across multiple floors as Hammond announced he would axe the staircase tax. Despite the ruling, businesses affected will need to continue paying their current bill until legislation is approved and the Valuation Office Agency make the amendments. Unfortunately, this may take time, which isn't good news for businesses in the short term. 

“Following the success of the business rates discount for pubs it was declared that this would be extended until May 2019, good news for the leisure sector as roughly 90% of pubs currently benefit from the £1,000 discount.

“In other news It was also announced that local authorities would now be able to charge 100% council tax on empty properties to penalise those with vacant properties and hopefully increase housing availability across the country.”

To speak to Graham about today’s changes and your business rates liabilities moving forward please contact him on 0113 221 6119 or at graham.isle@sw.co.uk.

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