Eddisons Taylors are highly experienced within the retail sector providing concise business appraisal and valuation advice across this diverse asset class.
Eddisons Taylors have continued to monitor and provide valuations within the retail sector as it has evolved. However, the changing fortunes of the retail market continue to place significant challenges on surveyors and valuers.
As with all other sectors, the retail market had been adversely affected by the recession that dominated our economy during the last decade. With consumers increasingly looking to cut costs in their daily lives, there has been a clear shift towards value brands and discounted products as is evidenced by the growth of the budget grocers such as Lidl and Aldi that now account for 10% of this market. Whilst some retailers have been able to keep pace with consumer demands, others have been less fortunate. As a result, closed units and an increasing abundance of agents boards have become a common sight within our town and city centres.
However, as the UK emerges from the economic downturn, interest in the retail sector is slowly beginning to increase, with specialist business transfer agents reporting a rise in the number of potential purchasers entering the market. Nonetheless, independent retailers will continue to face an increasingly competitive market place, particularly as a result of developments in cut price internet based ordering and delivery services and the diversification of corporate operators into a wide range of product sectors.
This includes an ongoing move into the fuel retailing market, which has evolved considerably in recent years. Despite difficult economic conditions, demand for good quality forecourt sites, especially those with retail development potential, remains relatively strong.
High market prices for existing/start-up operations and a general difficulty in obtaining planning consent for new sites, has forced potential purchasers to consider the redevelopment of closed forecourts. Multiple retailers maintain a key role in the market and joint ventures with oil companies continue to be developed.
Our experienced retail team are available to provide informed valuation advice based upon current information and sector analysis. Please contact any of us to discuss your individual valuation and reporting requirements.