Things to consider if you’re thinking of selling your retail business in 2024

The retail market has been influenced by several factors in recent years, ranging from the COVID-19 pandemic, supply chain issues, and more recently inflation, cost of living challenges and subsequently, increased store theft. Throughout all of this uncertainty however, convenience retail businesses have continued to diversify and thrive, and the good news is that buyer demand and current values still reflect this sentiment.

The convenience retail market is fast-paced and getting the right advice is crucial to achieving the best price and most importantly, ensuring your sale is successful. Here at Christie & Co, we handle hundreds of retail transactions per year. Read on for a guide of the key things to consider if you’re thinking of starting your selling journey this year.

Get your business accounts in order

Ensure your financials are together and you are able to access everything, such as your latest accounts, VAT returns and EPOS data that can build a picture of your store performance, average takings and average stock levels.

Build your team of experts

With so many moving parts involved in a business sale, choosing whether to use an agent can arguably make or break a deal. Christie & Co has a national, specialist team of retail experts who can handle the deal from initial conversation to negotiation and completion. Have you got an experienced business agent with the right pedigree on your side?

Selecting the right solicitor is just as important and we only recommend engaging with trusted firms with retail experience, that have your best interests at heart.

Adding value for buyers

This topic is discussed on a near daily basis with our prospective buyers. It’s important to understand the improvements that will add value and appeal for buyers to avoid unnecessarily spending money, such as undertaking a store refurbishment only for a new owner to rebrand.

A ‘destination’ store experience is becoming increasingly popular in the UK. Developing areas of your store to accommodate standalone coffee machines, dessert or vape bars and refrigerated beer caves, is a great way to diversify your business, elevate the customer experience and add value in the eyes of buyers.

Understand each offer with a holistic view

Assess each prospective buyers’ terms, not just the amount put forward. This is particularly relevant if you’re looking to sell the leasehold and retain the business and property. Whilst this option offers you an ongoing rental income, it’s important to consider that any incoming store owner will also establish an ongoing tenant relationship with you, and you will adopt responsibilities as a landlord. Does the highest bid offer the best long-term prospects?

Be cautious of private offers

If you’re a busy retailer running a fast-paced store, it could be tempting to accept a direct offer from someone. Whilst this can certainly be seen as the convenient path, it puts the buyer firmly in the driving seat with regards to setting the pace, terms and price of the deal. In contrast, working closely with a specialist property agent can give you an advantage that will ensure you get the best price and see the deal through to completion.

Legislation changes to consider

Government changes such as the national living wage increase coming into effect in April 2024 and new vape legislation are set to be the latest big impacts to trade. It is therefore all the more important for retailers to diversify their offering, to help offset any impact this may have on trading performance.

Conclusion

Buyers remain attracted to the solid, needs-driven trading fundamentals that convenience retail businesses offer, and we continue to receive multiple offers per instruction as a result.

If you’ve thought about exiting your business, now is a great time to sell.

For a confidential discussion regarding your business options, please get in touch with our specialist Retail Team.