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Retail News
As trends in grocery shopping have shifted towards online and discount channels, perhaps counter intuitively, as a result of this we have seen an increase in consumer preference for convenience channels as well. Typically customers are supplementing their weekly shops with frequent, smaller ones and in doing so paying more in a convenience store for the same goods than they would in a supermarket with the key factor being…convenience!
Whereas traditionally retailers prefer the comfort of similar operators in the surrounding area, a good “C-store” generally dominates the location with minimal competition, a strong surrounding population, high traffic flow with ample customer parking to capitalise. The size of the store is of course limited to 3,014 square feet of sales area by Sunday trading laws with ideally around 1,000-1,500 square feet of storage.
Despite the current economic turbulence, the sector continues to perform well with the number of stores in the UK increasing from 5,015 to 8,556 in the decade leading up to 2024. The market is projected to be worth some £56.2 billion by 2030. Many of the big name national supermarkets have active requirements for new convenience stores.
This market growth has led to increased demand and competition from operators for new stores which in turn has seen rents in excess of £30 per foot in many cases for good quality new stores in prime locations. It remains a difficult task to prove that this rental growth filters through to older stores however we are seeing consistent growth in the sector so it does appear to be a case of a rising tide lifts all boats. Alongside this, convenience stores remain popular with investors which is leading to demand being outstripped by supply.
At FHP we are experts in the sector with experience advising on lettings, sales, acquisitions, renewals and rent reviews. In 2025 alone we transacted on convenience store deals with a combined rental value in excess of £650,000. For more information on how we can assist you, contact Tom Wragg (07970 168 138 / tom@fhp.co.uk).