Venture capitalists are taking an interest in CTNs for the first time in years, indicating that the sector may in fact be experiencing a revival, according to convenience sector analyst SRCG.
For years the demise of the sector at the hands of the supermarkets was expected.
However, SRCG director Scott Annan said the situation had changed. "Venture capitalists have started talking to me about investing in CTNs. You know there's been a change in the market when that happens. There are opportunities for such groups to quietly build up very professional CTN chains."
Several independents, such as Rippleglen and Maynews, included in The Grocer Top 50, reported strong sales growth last year. Retailers say additional services such as the lottery and newspaper deliveries can offset falling sales of traditional lines.