Symbol group funding has dropped significantly as a proportion of investment in the convenience sector in the past 12 months.
According to new data from the ACS Local Shop Report, total investment in convenience stores hit the £1bn mark for the first time, marking a 55% increase year on year as self-funding by retailers notably grew. However, despite the 55% jump, the contribution of symbol groups shrunk as a percentage of the total to 12%.
Funding from symbol groups made up 20% of the £646m total investment in the convenience sector in the 12 months preceding last year’s report, amounting to around £129m.
This year, the report says 12% of all store investment came from symbol groups, suggesting that symbol group investment fell by almost £10m year on year to around £120m.
This means symbol groups provided less funding to their fascia retailers than suppliers (approximately £140m) in the period covered by the ACS report.
Other sources of investment growing
Last year, symbol groups funded 20% of all convenience store investment, compared to suppliers’ 16%. Symbol groups were the only funding source to fall year on year as a proportion of all investment, with contributions from financial institutions and wholesalers also growing.
The data from the ACS was gathered from the organisation’s Voice of Local Shops Survey, as well as a comparable survey covering multiples.
Explaining its investment calculations, the report said: “Questions were asked relating to the amount retailers have invested over the past quarter, what they have invested in and how they have funded their investments.”
The figure was calculated from an initial sample of 1,100 retailers.
Read more ACS news
Much of the increase in spending has gone towards security measures for shops. As shoplifting incidents soar, crime-prevention measures made up by nearly a quarter (23%) of the money retailers invested in stores.
Better Retailing approached several symbol groups for comment. Nisa confirmed that the number of its partners who choose to fund 100% of their store development versus those who take up its fascia incentive offer is split approximately 40/60.
A Nisa spokesperson added: “Nisa provides significant financial contributions for store development and this hasn’t dropped over the previous 12 months.”
Read more symbol group news
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