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

Breck to start £15m Blackpool affordable homes and retail development Cropper Road, Blackpool

Breck to start £15m Blackpool affordable homes and retail development

14 Oct 2025

2

New help for Blackpool businesses to access growth money John Fallon speaking at the meeting

New help for Blackpool businesses to access growth money

14 Oct 2025

3

Fuuse raises further £6m as it heads to profitability COO Nik Southworth, CEO Michael Gibson, CFO Sonia Davies.

Fuuse raises further £6m as it heads to profitability

13 Oct 2025

4

Preferred developer named for strategic site Barnfield named as preferred developer for site

Preferred developer named for strategic site

13 Oct 2025

5

Warden completes hospital improvement work Warden Hospital

Warden completes hospital improvement work

13 Oct 2025

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
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Unlocking major project opportunities in the North West
Lancs-cham-logo.jpg.jpg
LBV Hub Seminars
15 Oct 2025 - 15 Oct 2025

Unlocking major project opportunities in the North West

Strathmore Hotel, Morecambe, LA4 5AP

08:00 - 10:00

The New Employee Rights Landscape: Day One Compliance Essentials
EventBrite NORi - 15th Oct 2025 Webinar.png.png
LBV Hub Webinar
15 Oct 2025 - 15 Oct 2025

The New Employee Rights Landscape: Day One Compliance Essentials

Microsoft Teams, Microsoft Teams, PR253XH

13:30 - 15:00

The Autumn Re set - pour me a wine
LBV Advert_Autumn Reset 1200 x 630px.png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Autumn Re set - pour me a wine

The Artistry House , Preston , PR1 3JJ

17:30 - 19:30

The Business Network Central & East Lancashire
LBV Header (26).png.png
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

October Freelancer Meet-Up
LBV Hub Networking
16 Oct 2025 - 16 Oct 2025

October Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

HR Essentials for pubs, bars and licensed venues
EventBrite NORi - 22nd Oct Webinar.png.png
LBV Hub Webinar
22 Oct 2025 - 22 Oct 2025

HR Essentials for pubs, bars and licensed venues

Online - Teams, Leyland, PR253XH

13:30 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

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

09:30 - 15:30

Chamber Business Lunch – October
LBV Hub Networking
24 Oct 2025 - 24 Sep 2025

Chamber Business Lunch – October

Lancaster Golf Club, Lancaster, LA2 0AJ

11:00 - 13:30

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 LBV124 Online Graphic
Subscribe now

Weekly news bulletin