Snapping up rivals is becoming the norm

While larger deals are unlikely to get the go-ahead as banks are unwilling to lend large cash sums, smaller acquisitions will become commonplace. Vision Express snapped up the 70-store chain for an undisclosed sum and it took its store portfolio to 300 plus.

This type of acquisition is driven by the downturn. Smaller retailers will find times harder when all their costs are going up and their shoppers are spending less. And many will be assessing how they can carry on. Selling out to a competitor may be the best way of securing their future.

Acquisitions will be across the board too. Just last week, Carpetright chairman and chief executive Lord Harris said he is also eyeing smaller rival chains. He pointed out that when times are tough, it is the perfect time to buy. Travis Perkins is another example – it has bought two tile retailers in the past few months to strengthen its Tile Giant arm.

While these acquisitions are set against a dark background of tough trade, they mark a positive move for the property industry.

Some smaller chains are struggling more than ever at the moment and trade does not look like it will take a huge upturn any time soon. And with the list of retailers that have gone into administration this year just getting longer, landlords are fearing for many of the smaller chains.

If larger and well-established retailers like Vision Express, Carpetright and Travis Perkins can provide a stable solution for smaller retailers then landlords can relax because they will then have a solid covenant in their properties.

For some shoppers it may well be a shame that some of the smaller chains are disappearing from our high streets, but if a sale is the only way they can survive, then that has to be better than any alternative.

Times are tough for all retailers and if they can find a better way to move forward in this difficult climate, then it will be to the benefit of all concerned.

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