The Future of Food Chains

CUSHMAN & WAKEFIELD

CONSUMPTION

THE FUTURE OF THE SUPERMARKET

Supermarkets have outperformed other retail assets over recent years, owed to relatively inelastic levels of demand, strong occupier covenants with typically long WAULTs, and the often direct link between rent levels and the pricing levels of the goods sold within them achieved through RPI- linked rental reviews.

The sector as such has attracted strong investor interest, and consistently trades at a yield premium when compared to other retail assets.

TOTAL RETURNS MONTHLY INDEX BY SECTOR (MAR 2000 = 100)

20000

15000

10000

5000

0

SEP ‘11

JUL ‘12

JUL ‘17

APR ‘11

SEP ‘21

SEP ‘16

FEB ‘12

FEB ‘17

JUN ‘15

JAN ‘15

JUL ‘22

APR ‘21

DEC ‘12

DEC ‘17

JUN ‘10

APR ‘16

OCT ‘13

JAN ‘10

OCT ‘18

FEB ‘22

AUG ‘19

MAY ‘13

NOV ‘15

AUG ‘14

MAY ‘18

MAR ‘19

DEC ‘22

MAR ‘14

JUN ‘20

JAN ‘20

NOV ‘10

NOV ‘20

All Property

All Retail

All Office

All Industrial

Supermarket

Source: MSCI, 2023