Transactions - OCTOBER 15, 2020

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No sign of supermarkets losing their shine

by Marek Handzel

Supermarkets and grocery stores will continue to be a reliable source of income for investors, despite the growth in online grocery shopping and the ongoing COVID-19 crisis.

Andreas Trumpp, head of research, Europe, at Savills Investment Management, says that the yields on offer from European prime supermarkets — currently standing at an average of 5.45 percent — as well as their continued efforts to maintain high footfall levels, means that physical grocery assets remain a robust investment.

“We have monitored a quite significant rise in online grocery shopping during the COVID crisis,” says Trumpp. “A lot of people have not had the option to go out and go shopping. Then another group of people felt uncomfortable with physical shops and grocery shopping. Across all age groups, including the elderly, people started to buy their food online. That’s true for almost all European countries. If we just look at the numbers, investors could get scared. But I think

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