BUYING & SELLING POST-COVID
When the crisis first began, and States closed their
economies we saw many c-store companies pull back
on expansion and acquisition plans. Proposed
construction projects were put on hold or canceled.
Search for new sites was halted and many deals at the
initial stages of negotiation were scuttled. Completing
due diligence has been problematic with restrictions on
property inspections, city/towns canceling public
hearings, and State agencies being closed and unable
to issue licenses. However, we have seen most deals
that were under contract pre-COVID continue and will
eventually close.
Written by Ken Currier
Gas Station and Convenience Store Official Newsletter
Page 1 - 2
Buying & Selling Post-COVID
Written by: Ken Currier
Page 3
The Future ofC-Stores & Gas stations
Post-COVIDWritten by: Aaron Cutler
Page 4 - 9
Northeast Bi-WeeklyStatus Reports
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May 27,2020
Issue 5
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Probably the most common question we are asked by store owner/operators is What is the current market activity? Are deals still being done?
In the last few weeks, we have seen new deals
being signed for land leases and NTI
development, sellers are willing to explore the
market, and tenants are purchasing the
underlying real estate. We have also seen an
increased interest from buyers seeking to add
to their portfolio. There is an absence of top tier
stores being offered for sale in the New
England market. These highly profitable stores
are always in high demand, even during
challenging times. The bottom tier stores
present many challenges but there is still an
active market if priced correctly. We have seen
sales of these bottom tier stores, often the
sellers accept the first offer resulting in
discounts of 20% or more from pre-COVID
prices.
So, my answer is Yes, there is a market
for your store, and we are seeing
increased activity. As States reopen
and consumers continue to visit their
local c-stores for the daily coffee,
sandwiches, grocery, and fuel stores will
remain profitable. Buyers that are ready
to add to their portfolios may find good
opportunities. Those seeking to exit the
industry or downsize their operations
should do so with a well-defined plan.
Aaron and I have been advising store
operators for years and we would like to
meet with you to discuss your future.
Ken CurrierPartnerp: 603.279.4474m: 603.455.483325 Country Club Rd, #704, Gilford, NH [email protected]
We help C-Store owners, oilcompanies, and investors
maximize their sales proceeds,divest from poor performing
properties, and assist withmergers/acquisitions.
Con't from page 1
Gas Station and Convenience Store Official Newsletter
INSIDER
Convenience Store InvestmentsAaron CutlerPartnerp: 781.749.3663m: 781.264.615225 Country Club Rd, #704, Gilford, NH [email protected]
Start Building Your Strategy
www.cstoreinvestments.com
Please email us for additional information:
While fuel sales look to be flat to down in the
near term, store sales are another question. There
appear to be some good opportunities
for stores right now. Those that sell beer, wine
and liquor are certainly seeing a bump in
revenue.
But stores overall could benefit going forward
from the collapse of the restaurant industry. It is
estimated that 25% of all restaurants could go
out of business in the next few years. This would
provide an opportunity for other food providers
to step in. Convenience stores are a
logical place for consumers to transition some of
their restaurant dollars to.
Store operators can take advantage of this first
and foremost by making customers feel safe and
clean inside your stores. Give touchless payment
options when possible and post clear and
attractive signage about your cleaning processes
and your protocols for keeping customers safe.
Offer the items that customers may want. In the
short term, as we have already discussed, try to
find grocery items that are in short supply
elsewhere. In the long term, if you have the
room, look into competing with restaurant
options. Offer food service, and if you can, put a
drive-thru in. Drive-thrus are absolutely killing it
right now and that will likely continue for a
while.
Please give us a call or shoot us an email to tell
us about your struggles or how you are going to
capitalize on the opportunities presented by
COVID.
Ken CurrierPartnerp: 603.279.4474m: 603.455.483325 Country Club Rd, #704, Gilford, NH [email protected]
We help C-Store owners, oilcompanies, and investors
maximize their sales proceeds,divest from poor performing
properties, and assist withmergers/acquisitions.
Gas Station and Convenience Store Official Newsletter
INSIDER
Convenience Store InvestmentsAaron CutlerPartnerp: 781.749.3663m: 781.264.615225 Country Club Rd, #704, Gilford, NH [email protected]
Start Building Your Strategy
www.cstoreinvestments.com
First off, where have we been? We saw fuel volumes
plummet to about 40-50% of normal volumes but
now most places have seen a rebound to 80-90% of
normal. Convenience store sales similarly fell, but now
in many stores they have regained much of the
ground they lost, and in some cases, they are doing
better than ever.
These trends illustrate some interesting possibilities
for our industry. Fuel demand falls with recessions,
and we are likely in for a big one. That will be
exacerbated by the realization on the part of many
companies and their employees that commuting to
work is a big waste of time, money and efficiency.
Many people will decide to work from home, or near
home, for a while or forever and that will dampen fuel
demand.
On the other side of the ledger, fewer people who do
commute to work will be taking mass transit, so they
will be riding in cars. In the short term, more people
who are riding in cars will be riding solo, so that will
keep demand up. People are looking at cars as safe
havens, and they are using them to congregate and
have parties, go to drive in movies and even drive in
concerts.This uptick in the use of cars may offset some
of the loss of volume from other
factors.
THE FUTURE OF C-STORES & GAS STATIONS
POST-COVID
Written by Aaron Cutler
COVID has upended the entire world for the last two anda half months, but will there be any lasting effects from it,and if so, what will be the impact on gas station/c-stores?
MOBILITY RATES
CONFIRMED COVID CASES BY STATE
UNEMPLOYMENT RATESBY STATE
TRAFFIC COUNTS