The European grocery sector has a positive growth outlook for the coming years ahead. Improving consumer confidence, inflation slowly moving back to target and a forecast rise in retail sales bode well for consumers, retailers and investors alike. Increased spending will help retailer margins to recover and drive growth expansion plans, accelerating the occupier need for space. These factors will play a significant role in fuelling investor appetite and increasing investment volumes in the sector. 

While a lack of stock can limit the number of transactions, sale and leasebacks and mergers and acquisitions will support activity in the market. As market concentration among the larger retailers grows we expect to continue to see consolidation of portfolios as the big grocery players look to increase their market share, with winners and losers emerging from a fragmented market. Supermarket yields are expected to remain stable for the remainder of the year and begin to harden in 2025 as interest rates across Europe decrease and investors increase their exposure to the market. 

_{Read the articles within Spotlight: European Grocery Market 2024 below.}