After reaching close to a record high at the start of 2021, the gap between supermarket and all-retail equivalent yields has since fallen back to its pre-COVID-19 level. That is likely to reflect the decline in sales at food stores as the economy has reopened. But looking ahead food sales are once again set to outperform as the cost-of-living crisis forces consumers to cut discretionary spending such as leisure in favour of eating at home. That will help supermarket rents to continue to outpace all-retail rents over the next couple of years.
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