Our convenience assets are aligned to modern shopping habits
The store network remains integral to retailers, particularly for essential goods and food, and our assets are benefitting from a consumer preference for greater convenience.
We continue to grow our exposure to convenience properties
Our convenience assets are well located, stand-alone or cluster properties that are right sized, right rented and let on long leases to grocers, discounters, home and DIY operators with resilient business models. They are less exposed to the migration of shopping online and offer omni-channel optionality in a convenient format.
£ 0.9 bn
Portfolio value£ 58 m
Contracted rent168
Assets12 years
WAULTSub sectors of convenience
Foodstores
c.50 assets let to key occupiers including Waitrose, Co-op, Costco, Tesco and Aldi. These are predominantly smaller format grocery stores with an average area of c.30,000 sq ft.
NNN Retail
c.30 assets, primarily single or cluster units let to discount, essential, electrical and home retailers such as Currys, DFS, Dunelm, Home Bargains, Pets at Home and The Range.
Roadside
C.70 assets, primarily convenience stores with attached petrol filling stations, drive-thru coffee outlets and automated car washes. Key occupiers include Co-op, IMO, BP, McDonalds, MFG and Starbucks.
Case study
Our investment in Weymouth
Our three phases of development at Weymouth has introduced a number of high quality occupiers.
Market drivers
Urbanisation and busy lifestyles have moved consumers towards a ‘grab and go’ culture.
Convenience and essential retailers have adapted their estates towards smaller format stores that accommodate this new consumer behaviour. Whereas the top four grocers had 74% market share in 2014, this has fallen to 65% today, driven by the steady growth from discount grocers, principally Aldi and Lidl.
The convenience channel is expected to grow by 4% p.a. CAGR over five years to 2028 from £48.5 billion of sales to £59.9bn.
These strong fundamentals are ensuring there is good demand for convenience related property investments.
+ 17 %
Growth in Lidl UK revenue in 2024