Business property adviser Christie & Co said they expect a rise in convenience franchising for 2020 as suppliers make attractive offers for retailers to participate in premium brands.
A new report by the firm, ‘Business Outlook 2020: Focus on Business’, forecasts continued portfolio rationalisation and acquisition programmes by the multiples in the convenience market, which accounts for over a fifth of the overall grocery market.
“We started the year slowly with much political uncertainty possibly affecting investor confidence. That seems to have evaporated in the second half and we finished the year strongly, with many projects in the pipeline that we look forward to delivering in 2020,” said Steve Rodell, managing director, retail at Christie & Co.
The report also predicts strong demand for petrol filling stations, with an increase in overseas investment in the UK fuel market.
The firm said transactional activity in the sector remained robust throughout 2019, showing strong ongoing interest in filling stations amongst investors.
The report describes developments in alternative fuel vehicles as a forthcoming challenge to the sector, in light of the government pushing on with its ‘Road to Zero’ strategy to cut CO2 emissions. However, recent reports of modest increases in electric vehicle sales suggest petrol filling stations will remain relevant for the foreseeable future, it added.
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