The supermarket/convenience store situation in the UK is evolving at a fast pace as has been outlined throughout the course of 2014 in the media: this is outlined by recent sales figures which show the following on turnover figures:
Aldi: plus 26%
Lidl: plus 17%
Waitrose: plus 5.6%
Sainsbury’s: minus 2.5%
Morrisons: minus 3.3%
Tesco: minus 3.7%
What does this mean in property terms? This is a very interesting question and we report that as far as Convenience Stores are concerned the market is still moving forward – excellent demand across the board and new Convenience Stores opening at a pace. These relate to new Convenience Stores, converted public houses and other conversions and extensions. Tesco, Morrisons, Sainsburys and remarkably enough the Co-operative, are still moving forward and hungry for new opportunities.
However, as far as Supermarkets are concerned, the situation is vastly different with the major players almost at a standstill and with limited appetite to develop any further units. The Co-operative has already openly announced that they are not moving forward on the Supermarket front but the same seems to be the situation with regard to Tesco, Morrisons and Sainsburys. Indeed, last year, as far as Planning Applications are concerned, Aldi made more Planning Applications than Tesco, Asda, Morrisons and Sainsburys put together. Indeed, Lidl were not far behind Aldi in the Planning Application stakes. Exactly what this will do for rents in the future is a very interesting question and we think it is a case of WATCH THIS SPACE!!