News has come out this week that Getir is to acquire its rival Weezy. This is a prime example of consolidation within the dark store market, a point touched upon in our last dark store article. Both companies are recognised names within the new and expanding market of dark stores and, as this market starts to solidify, it seems inevitable that some companies will consolidate in order to remain financially viable and push profits.
A fortnight ago it was announced that Weezy was to close five of its 22 stores in the UK as a result, it was understood, of an oversupply of dark stores in the relevant parts of the country (including London).
For landlords this consolidation will serve as a reminder that, whilst new markets offer opportunities they also bring with them risks. The closure of a store brings with it a loss of income stream for the affected landlord (assuming there is a leasehold structure) and in practice, this can only really be mitigated to an extent by a rent deposit (or other guarantee arrangement) and by the landlord's pre-HOTs due diligence - both in relation to the tenant entity itself and also to the supply of dark stores in the vicinity of the relevant premises.
Rapid grocery player Getir is to acquire rival Weezy, in a move it says “solidifies Getir’s long-term commitment to the UK market”. Getir announced today it had reached a definitive agreement to acquire the UK-founded ultra-fast grocery brand.