As the graveyard of previous successes litters the high streets, stores of varying sizes are becoming available on the commercial property market.
With the recession showing no signs of diminishing and the riots in August affecting many commercial properties around the country, are certain sectors struggling more than others? Movehut investigates.
Focus DIY is one of the most recent victims to go into administration. Their commercial property shells are now added to the ever expanding list of vacant properties littered around many cities. But who would want such a large out of town store? The obvious answer is their main rival B&Q, who did previously in fact owned Focus DIY.
However, if B&Q are intending to buy any of their commercial properties, they will have to act quickly, as recently B&M have snapped up a number of the stores. B&M are a low cost, part-food, part-home products store that sells items at a fraction of the price of the most renowned supermarkets. It appears that it is this sector of business that is slowly reviving some of the empty commercial properties around the UK.
Another food outlet that is gleaming with success is Krispy Kreme, which has recently moved into the UK market. With almost 50 stores in the UK, and an equal amount of cabinets in Tesco, along with their plans to open new cabinets in WHSmith and Welcome Breaks, Krispy Kreme is proving to be recession proof. As an affordable little treat, the business has been able to expand at an alarming rate and shows no sign of slowing down, with announcements on their webpage of new commercial properties coming soon.
Earlier this month movehut expressed that Restaurant Group PLC, who own Chiquito, Frankie & Benny’s and Garfunkel’s restaurant chains, saw a three per cent rise in sales for the first half of this year. Andrew Page, Chief Executive expressed, “Against a tough economic backdrop, ongoing cost pressures and with household incomes being squeezed hard, this performance demonstrates the ongoing resilience.”
With the above success stories, it does seem that the food industry is full proof, but for how long can the industry be the only successor in the economic downturn? Will the high streets soon only be full of food outlets and restaurants? It appears it will all be part of a new cycle in the commercial sector, and those willing to keep up with the demands of the times are those that will gain the most.
The truth is people may cut back on buying a new outfit or a new pair of shoes, as they are not seen as necessities, but people will always be willing to spend money on food for basic human needs.
