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BUYING & SELLING POST-COVID

When the crisis first began, and States closed their

economies we saw many c-store companies pull back

on expansion and acquisition plans. Proposed

construction projects were put on hold or canceled.

Search for new sites was halted and many deals at the

initial stages of negotiation were scuttled. Completing

due diligence has been problematic with restrictions on

property inspections, city/towns canceling public

hearings, and State agencies being closed and unable

to issue licenses. However, we have seen most deals

that were under contract pre-COVID continue and will

eventually close.

Written by Ken Currier

Gas Station and Convenience Store Official Newsletter

Page 1 - 2

Buying & Selling Post-COVID

Written by: Ken Currier

Page 3

The Future ofC-Stores & Gas stations

Post-COVIDWritten by: Aaron Cutler

Page 4 - 9

Northeast Bi-WeeklyStatus Reports

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INSIDE THE ISSUE :

INSIDER

May 27,2020

Issue 5

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Probably the most common question we are asked by store owner/operators is What is the current market activity? Are deals still being done?

In the last few weeks, we have seen new deals

being signed for land leases and NTI

development, sellers are willing to explore the

market, and tenants are purchasing the

underlying real estate. We have also seen an

increased interest from buyers seeking to add

to their portfolio. There is an absence of top tier

stores being offered for sale in the New

England market. These highly profitable stores

are always in high demand, even during

challenging times. The bottom tier stores

present many challenges but there is still an

active market if priced correctly. We have seen

sales of these bottom tier stores, often the

sellers accept the first offer resulting in

discounts of 20% or more from pre-COVID

prices.

So, my answer is Yes, there is a market

for your store, and we are seeing

increased activity. As States reopen

and consumers continue to visit their

local c-stores for the daily coffee,

sandwiches, grocery, and fuel stores will

remain profitable. Buyers that are ready

to add to their portfolios may find good

opportunities. Those seeking to exit the

industry or downsize their operations

should do so with a well-defined plan.

Aaron and I have been advising store

operators for years and we would like to

meet with you to discuss your future.

Ken CurrierPartnerp: 603.279.4474m: 603.455.483325 Country Club Rd, #704, Gilford, NH 03246kcurrier@cstoreinvestments.com

We help C-Store owners, oilcompanies, and investors

maximize their sales proceeds,divest from poor performing

properties, and assist withmergers/acquisitions.

Con't from page 1

Gas Station and Convenience Store Official Newsletter

INSIDER

Convenience Store InvestmentsAaron CutlerPartnerp: 781.749.3663m: 781.264.615225 Country Club Rd, #704, Gilford, NH 03246acutler@cstoreinvestments.com

Start Building Your Strategy

www.cstoreinvestments.com

Please email us for additional information:

While fuel sales look to be flat to down in the

near term, store sales are another question. There

appear to be some good opportunities

for stores right now. Those that sell beer, wine

and liquor are certainly seeing a bump in

revenue.

But stores overall could benefit going forward

from the collapse of the restaurant industry. It is

estimated that 25% of all restaurants could go

out of business in the next few years. This would

provide an opportunity for other food providers

to step in. Convenience stores are a

logical place for consumers to transition some of

their restaurant dollars to.

Store operators can take advantage of this first

and foremost by making customers feel safe and

clean inside your stores. Give touchless payment

options when possible and post clear and

attractive signage about your cleaning processes

and your protocols for keeping customers safe.

Offer the items that customers may want. In the

short term, as we have already discussed, try to

find grocery items that are in short supply

elsewhere. In the long term, if you have the

room, look into competing with restaurant

options. Offer food service, and if you can, put a

drive-thru in. Drive-thrus are absolutely killing it

right now and that will likely continue for a

while.

Please give us a call or shoot us an email to tell

us about your struggles or how you are going to

capitalize on the opportunities presented by

COVID.

Ken CurrierPartnerp: 603.279.4474m: 603.455.483325 Country Club Rd, #704, Gilford, NH 03246kcurrier@cstoreinvestments.com

We help C-Store owners, oilcompanies, and investors

maximize their sales proceeds,divest from poor performing

properties, and assist withmergers/acquisitions.

Gas Station and Convenience Store Official Newsletter

INSIDER

Convenience Store InvestmentsAaron CutlerPartnerp: 781.749.3663m: 781.264.615225 Country Club Rd, #704, Gilford, NH 03246acutler@cstoreinvestments.com

Start Building Your Strategy

www.cstoreinvestments.com

First off, where have we been? We saw fuel volumes

plummet to about 40-50% of normal volumes but

now most places have seen a rebound to 80-90% of

normal. Convenience store sales similarly fell, but now

in many stores they have regained much of the

ground they lost, and in some cases, they are doing

better than ever.

These trends illustrate some interesting possibilities

for our industry. Fuel demand falls with recessions,

and we are likely in for a big one. That will be

exacerbated by the realization on the part of many

companies and their employees that commuting to

work is a big waste of time, money and efficiency.

Many people will decide to work from home, or near

home, for a while or forever and that will dampen fuel

demand.

On the other side of the ledger, fewer people who do

commute to work will be taking mass transit, so they

will be riding in cars. In the short term, more people

who are riding in cars will be riding solo, so that will

keep demand up. People are looking at cars as safe

havens, and they are using them to congregate and

have parties, go to drive in movies and even drive in

concerts.This uptick in the use of cars may offset some

of the loss of volume from other

factors.

THE FUTURE OF C-STORES & GAS STATIONS

POST-COVID

Written by Aaron Cutler

COVID has upended the entire world for the last two anda half months, but will there be any lasting effects from it,and if so, what will be the impact on gas station/c-stores?

MOBILITY RATES

CONFIRMED COVID CASES BY STATE

UNEMPLOYMENT RATESBY STATE

TRAFFIC COUNTS