Independent retailers looking to expand their estate and build on customer loyalty seen during the pandemic must “up their game”, according to Christie’s finance consultant Ed Brown.
The group said while it has experienced increased demand for premises over the past year, lenders are remaining cautious.
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Brown told Better Retailing: “The lending market has become fragmented and it’s more challenging to secure finance, especially from high street lenders. Retailers looking to expand must present a detailed business plan and forecast.
“Convenience has benefitted in places where people are working from home, and we have seen a significant upturn.
“There may be a gradual drift back to urban centres, but many retailers want to retain new customers for the future.”
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While increased interest has come from new entrants to the convenience market, many retailers are reportedly looking for a second or third premises, particularly in suburban areas.
However, to secure finance he warned retailers should work closely with their accountant or broker to demonstrate good performance over the past 12 months.
“Many retailers have all the relevant information from their till system, but they will need to present it in a format that is acceptable to lenders,” said Brown. “Lenders want to see store owners have done their homework.”
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