Unprecedented Sales in Nursery Market

Unprecedented Sales in Nursery Market

Over the past five or six years, a quiet revolution has been taking place in the nursery sector. While it was not that long ago that with the exception of the biggest chains, almost all providers ran just one or two settings, that picture is now changing dramatically. Christie & Co have released their Childcare and Education mid-year review and report that nursery sales have never been higher, increasing by 50% on the levels seen in 2021. This comes both from established chains and new entrants to the market.

Multiple factors are driving the activity. Due to Covid, the last few years have been very strenuous and the increased pressures from inflation and the rising cost of living are creating yet more challenges. As a result, it is not surprising that owners who have been considering retirement anyway are now taking the decision to leave the sector. Conversely, with childcare never more important to the economy and subsidised by the state, nurseries are seen as a strong investment in uncertain times, attractive to those looking for somewhere to place their funds.

What will this mean for the sector? It remains a bit too early to tell. It will be important though that as the first generation of nursery founders passes the torch, the knowledge, creativity and wisdom that have powered the childcare industry so far are not lost. Luckily very few nursery owners are not mindful of this and in a competitive seller’s market, they have the opportunity to ensure their business is sold to buyers who will carry on providing service of the highest quality.