Why 2025 is the year for convenience store and petrol filling station investment
Anthony Meadowcroft, Senior Business Agent, discusses the current market landscape and things to consider if you’re thinking of buying or selling.
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2024 was a year, much like 2023, filled with events that will have a huge impact on future business plans. The increases in Capital Gains Tax, employers’ National Insurance contributions and Minimum Wage, along with changes to vaping regulations, announced in the Autumn Budget are to name but a few. For existing operators and those looking to enter the retail sector, taking these factors into account and having a carefully considered strategy is essential.
As we look towards the year ahead, the retail sector continues to demonstrate strong, UK-wide demand from buyers. This, coupled with confidence from lenders sourced by our specialists in Christie Finance, creates exciting opportunities and sets the stage for a promising year for both buyers and sellers of convenience stores and petrol filling stations.
Things to consider if you’re thinking of buying in 2025
Stability and growth by economies of scale
Several measures were announced in the Autumn Budget which will challenge businesses operationally this year, and force adaptation - something the retail sector thrives in. Communities continue to consistently use local convenience stores, which support their increasingly busy day-to-day lives. The needs-based nature of convenience stores means there is a high level of confidence in the sector, reflected by our clients who are investing in multiple store acquisitions, which increases buying power.
Adapting to consumer trends
The trend towards local destination shopping and the demand for convenience continues to grow. We are seeing more and more retailers enhancing their customer experience, offering trending products, additional takeaway options, and services such as vape bars, boosting overall store profit margins. We predict that this will continue in 2025.
Technological advancements
It is critical for retailers to embrace technology, something the major symbol brands are continuously developing. From advanced electric point of sale (EPOS) systems, electronic pricing labels, delivery apps and producing engaging local social media content, convenience stores are leveraging this support to drive revenue. Investing in a technologically advanced store, whilst keeping a personable touch, can provide a competitive edge.
Things to consider if you’re thinking of selling in 2025
High demand
The demand for convenience stores and petrol filling stations remains highly charged from the COVID-19 pandemic, as steady cash flow, margins and the potential for scalability provide ideal investment opportunities. This high demand ensures sellers can command premium offers from our market-leading network of buyers.
Diverse buyers
We are seeing a healthy cross-regional mix of first-time buyers, operators of multiple independent sites and corporate operators on the acquisition trail. Our high-quality database of buyers ensures your business is being marketed to the right audience, either openly or with a level of confidentiality.
Various funding routes
We are seeing a great mix of buying options from full cash to lending-supported offers, from commercial mortgages, to unsecured funding.
Having the right team behind you
Whether you’re entering the retail sector, searching for your next opportunity, or looking to sell your business, it’s essential to have the right team behind you, who can support your business needs.
At Christie & Co, our proactive, results-driven team understands the complexities of the retail market and can guide you from initial meeting through to completion. We provide a range of transactional and professional services, from valuations, investment advice, brokerage and consultancy to Christie Finance and Christie Insurance.
Coming Soon: A full analysis of the retail sector will be published in our ‘Business Outlook’ report on 16th January, where you’ll find updates on market sentiment, key transactions, and predictions for 2025.
For more information on this blog post, or for a confidential chat about your business, contact Anthony Meadowcroft – Senior Business Agent, Retail: Anthony.meadowcroft@christie.com / +44 7546 698 673