Strategy

 

 

Large Convenience Store Portfolio

Acquisitions require a traffic flow of a minimum 20,000 vehicles and limited competition from competitors within a two-mile radius of a site. As footfall is generated principally by the circa 14,000 car drivers using the store the amount of householders is not crucial and this has been borne out with shop sales at the Company's sites of between £30,000 and £40,000 per week with a Group average of £32,000 of shop sales per week.

 

The average Supermart store creates its own footfall due to the activity created by the high volume petrol station with an average Company throughput of six to seven million litres per annum with a large shop of 3000 sq ft, which creates 10,000 to 20,000 customers per week.

In order to protect the Company from the vagaries of the petrol market Margram, whose roots go back over 25 years in petrol retailing, have negotiated with two major oil companies for fuel contracts with a guaranteed profit margin.

The management team has considerable experience in the sector and has been responsible for acquiring, on behalf of the Heron Group of petrol stations, a total of 400 sites over 20 years. In addition, the management team were brought in to run a chain of 100 petrol stations on behalf of Arthur Andersen who were the receivers of the Banks for the Oakstead Group. Although the Company was given 18 months to turn round the Oakstead business prior to a sale of the assets, this was achieved within 12 weeks and the Group sold for considerably more than was anticipated by the Banks.

 

Margram Estates Ltd, Suite 123, The Knightsbridge, 199 Knightsbridge, London, SW7 1RH

Tel: +44 (0)207 823 8200 | Fax: +44 (0)870 051 3475