Lender confidence grows in retail sector as demand for debt rises, reports Christie Finance in 2025 Market Review
Specialist business property adviser, Christie & Co, has released its ‘Retail: Market Review 2025’, which explores the current retail market landscape, including transactional activity, the trading environment, and predictions for the second half of 2025.
The funding landscape for the retail sector continues to evolve, with a notable 76% increase in debt financing over the past two years. This surge reflects a robust appetite from lenders to support both acquisitions and refinances of convenience stores, catering to first-time buyers and seasoned operators alike.
This trend underscores the sector’s resilience to external pressures. Over the past 12 months, several lenders have enhanced their offerings, particularly in the freehold space, demonstrating renewed confidence in retail’s long-term viability.
Leasehold acquisitions have also gained momentum, buoyed by the Government Guarantee Scheme (GGS). The scheme has encouraged new entrants into the lending market, enabling the delivery of more competitive funding packages for clients.
A significant development in the past year is the shifting perspective on petrol filling stations. While environmental concerns and government policy initially caused hesitation, lenders now appear more comfortable with the role forecourts play in the local economy. There is, however, a growing emphasis on future diversification to offset potential declines in fuel sales, especially amid uncertainty surrounding electric vehicle (EV) adoption.
Garden centres remain attractive to lenders due to their high asset values, which offer strong security. However, the challenge of affordability persists. In such cases, funding is often secured through the operator’s experience and detailed financial modelling to demonstrate projected affordability.
Across all transactions, the key to successful funding remains the early identification and mitigation of potential risks. By working closely with clients and understanding lender expectations, we continue to secure optimal outcomes in a dynamic market.
To read the full report, click here: https://www.christie.com/news-resources/publications/retail-market-review-2025/
To discuss funding for your business, get in touch:
Ashley Clements
Associate Director
M: +44 7714 138 984
E: ashley.clements@christiefinance.com