Supermarket sweep: M&S, Waitrose and Lidl lead requirements as retailers grapple with upcoming business rate changes

The autumn edition of the recently renamed Generate Real Estate Opportunities Retail Conference welcomed a return to real estate following the summer slow down as agents and retailers convened at Old Billingsgate for networking and deal-making.

In a new format, the twice-yearly event, which was formerly the Completely Retail and Revo Conference, took place over two days against a background of uncertainty among retailers as they face potential business rate hikes in 2026.

Despite the uncertainty, there were many major retailers out in force with substantial requirements across the country. Leading were the supermarkets and food shops, including Marks and Spencer, Waitrose, Lidl, Tesco, Co-op and Morrisons.

But what do the retailers want? CoStar News rounds up the top requirements.

At the top of the list food and retail giant Marks and Spencer, was going strong on its hunt for more food retail outlets across the country.

The British high street favourite has added over 55 new stores to its portfolio since 2022, with over 80 stores renewed and modernised as part of its ongoing “Store Transformation Programme”. The strategy has seen the retailer focus on “relocating our legacy stores to new and bigger sites” while also adding to its footprint with acquisitions in a move that is “boosting value perceptions even more”, according to documents from the retailer.

As part of the refresh of the sites, which includes clothing, home and food, the brand will be creating sit down Café spaces and express coffee shops. It has also pledged ongoing investment into its Click & Collect service, which is now available in over 95% of its stores.

The company outlined its ambitious expansion plans, which include the opportunity for 400 target locations across food, clothing and home. It is targeting a consolidated estate of 180 Full Line Stores that will bring “90% of the UK population an M&S Store within 25 minutes’ drive.” Specifically, it is looking for buildings with 60,000-130,000 square feet of gross internal area, with a sales area between 45,000 and 115,000 square feet and over 300 dedicated parking spaces across a 5 to 6-acre site in an edge-of-town or retail park location.

It was also sharing lofty plans for its pipeline of 100 new food stores spanning of 21,500 square feet or more GIA outside London and 10,000 square foot GIA in London, in a move to increase its estate from 325 to 420 stores. To fit its wishlist, buildings must have a sales area larger than 16,000 square feet and dedicated parking on a site over 1.5 acres. It plans to open 100 new sites by the end of the 2028 financial year.

In the capital, the retailer noted 63 requirements across north west and west London at sites including Baker Street, Pimlico and Kentish Town, alongside a further 67 in the City, north east and inner south east of London at locations including Cockfosters, Dulwich and Stoke Newington. Another 68 potential locations were identified for requirements in south London and the West End, such as Balham, East Bromley and Vauxhall. The retailer is working with GCW on some of its active requirements. FMX is the retained agent for M&S within the M25.

Outside London, it was advertising 32 requirements in Scotland, 61 in the Midlands and north east, 39 in the north west and 51 in the midlands and East Anglia, 57 in the home counties and 63 in the south west.

Competitor Waitrose was also hot on the acquisition trail with an open call for more Little Waitrose sites, the brand’s small convenience store style locations.

The John Lewis Partnership-owned supermarket, had requirements for small-format sites from 4,000 to 5,000 square feet in size, with a 2,500 to 3,000 square foot sales area. The focus was not solely on small scale stores, larger format site requirements of 9,000 to 15,000 square feet with up to 10,000 square foot sales area were also on the books for the retailer, so long as they have between 30 to 50 dedicated car parking spaces.

Across all formats Waitrose said it is open to either leasehold or freehold models across new builds, conversions, extensions, development plots, retail parks, car showrooms, high streets, mixed-use schemes, shopping centres and suburban commuter hot spots.

Key factors for new locations include “high footfall, visible and accessible locations in towns and city centres”, the company said in its marketing leaflets.

German food retailer Lidl came in strong with myriad requirements regionally with a particular focus on: central England; the greater Manchester, east Lancashire and Calderdale area; High Peak; and East England. Open to freehold, leasehold or long leasehold opportunities the supermarket outlined store format requirements for high traffic areas and unit sizes of between 18,000 and 26,000 square feet with over 100 parking spaces for its customers. It has instructed FHP to lead its search for up to 2-acre freehold or leasehold sites spanning 18,000-22,000 square feet, with a minimum of 130 car parking space, in the Midlands.

In London and inside the M25, it is after over 100 more stores to add to its existing 120 stores in the area. Requirements include sites for stand lone stores over 0.8 acres or up to 4 acres for mixed-use schemes. Specifically, it was marketing requirements for a potential 238 new sites in London and inside the M25, with five store relocations.

Documents showed for freehold sites the retailer is quoting finders' fees of 1.5%, with 10% of the first-year rent for leasehold sites.

Co-op property was also out in full force at the event with materials marketing Co-op On-the-Go location requirements for leasehold sites between 2,200-2,000 square feet GIA across the UK. The new store format, which is aimed at the “grab and go” customer focuses on breakfast, lunch and dinner snacks in high-traffic, urban areas, transport hubs and high streets. The pipeline is promising with the brand is targeting around 10 sites before the end of the year.

This comes alongside a call for leasehold and freehold locations across the UK for its traditional store formats, where it hopes to find up to 5,000 square feet gross sites in new developments or with walk-in opportunities. The sites would add to the Co-op Group’s existing 2,356 convenience stores.

Also open to new opportunities, though decidedly less open on specific numbers, was Tesco. The supermarket said it is “looking for opportunities to grow its large and convenience store offer” across the UK. While no details of the number of sites it is looking to acquire were advertised, it did state that its convenience requirement criteria are between 2,500-10,000 square feet GIA sites, either pre-existing or in development, in neighbourhood and new housing areas, high streets and student locations.

Both leasehold and freehold sites are on the table for the convenience and its large store requirements. These include existing units or development sites of 3 to 8 acres to provide stores between 20,000 square feet and 45,000 square feet GIA.

Supermarket Morrisons was also looking for franchise partners for its Morrisons Daily stores on a 5-year contract. On the hunt for franchisees with existing shops of 1,200 square feet or above, the supermarket’s selection criteria included minimum weekly retail sales of £25,000 at sites that are already trading, a property with potential to be repurposed into one of its stores or potential new sites on vacant plots.

Continuing the supermarket beauty parade, Sainsbury’s also added to the growing list of requirements in the sector with a call for new sites in forward-funded development schemes and local town centres, as well as freehold buildings and development sites, lease agreements and sites in travel hubs including airports. These would add to its portfolio of over 800 retail convenience stores.

The company is offering access to its suite of other retail brands including Argos, Habitat and Tu Clothing as part of the potential deals, which include the intention to open 75 new local stores over the next three years.