Valuations for Melbourne supermarkets and convenience stores, built on margin, licences and the lease.
For selling or buying a store, a family member or partner leaving, moving the business between entities, or a lease renewal. Fixed fee, set by turnover.
A Melbourne supermarket or convenience store is valued on the profit it earns from gross margin, not on its turnover, after paying award wages for every hour the owners and their family work. Our valuers rebuild margin by category from point of sale data, test the lease and any fuel or banner agreement, and check that the tobacco and liquor licences behind those sales can pass to a buyer. Stock is usually counted at settlement and added to the price.
Turnover is not the measure
Grocery and convenience retailing turns over a lot of money on thin margins, and the mix matters enormously. A store where tobacco, phone recharge and lottery-style sales make up much of turnover earns far less per dollar than one selling fresh produce, deli lines and liquor. The valuation rebuilds gross profit by category from point of sale reports and supplier invoices, checks shrinkage and wastage, and compares the result with the accounts. Where cash takings are part of the picture, the valuer only counts income that can be evidenced, because a buyer will not pay for sales nobody can prove. Membership of a banner or buying group is reviewed too: the supply terms, rebates, marketing levies and what happens to the arrangement if the store is sold.
Tobacco licensing since February 2026
Victoria now licenses tobacco sellers. Tobacco Licensing Victoria, part of the Department of Justice and Community Safety, began enforcing the scheme from 1 February 2026, and anyone selling tobacco in the state must hold a licence, with a separate licence for every location. Applicants are assessed for suitability and must disclose personal, financial and criminal history. Transferring a licence to a new owner requires the regulator's approval. For many convenience stores tobacco brings customers through the door even when its margin is small, so a buyer who cannot get approval may lose more than the tobacco sales. The valuation shows tobacco revenue and margin separately and treats the buyer's approval as a condition of the sale. The licensing steps are for the parties, their lawyers and Tobacco Licensing Victoria.
Packaged liquor: the licence transfer
A store with a bottle shop or a liquor section depends on its licence. Liquor Control Victoria says the person or entity taking over a licence normally applies for the transfer, the application goes to Victoria Police, which has a month to object, and the buyer must not supply alcohol until the transfer is granted and they have the legal right to occupy the premises. It asks applicants to apply at least eight weeks ahead and says decisions usually take about five to seven weeks. The valuation shows liquor income separately and assumes a transfer can be obtained, stating that assumption in the report. Timing and conditions are for the parties, their lawyers and Liquor Control Victoria.
The lease, the location and the hours behind the counter
Location drives trade in convenience retail: a store near a station in Footscray, a strip shop in a growing estate, a site inside a shopping centre or a petrol and convenience site on a busy road each have different customers and different risks. The lease is tested for remaining term, options, rent reviews and outgoings, and for a petrol site the fuel supply agreement is read as closely as the lease, because it often sets margin and can end with the site. Many family-run stores trade long hours with owners and relatives on the roster. The valuer costs every one of those hours at award rates with penalties, because a buyer who has to employ staff to cover them will.
When Melbourne stores are valued
- ·Sale or purchase of a supermarket, grocer or convenience store
- ·A partner or family member leaving the business
- ·Moving the business into a company or family trust
- ·Lease renewal or a dispute with a landlord about the business
- ·Separation and family law matters (handled by our dedicated family law practice, Family Law Valuations (familylawvaluation.com.au))
- ·Market value evidence for small business CGT concessions on exit (your accountant applies them)
Common questions.
How much is my supermarket worth?+
Its value comes from the profit it can keep earning after paying market wages for all the hours worked, including yours and your family's, and after rent on the current lease. That profit is shaped by gross margin by category, shrinkage, supplier terms and how secure the lease and licences are. A valuation works from your point of sale data and accounts, not a percentage of turnover.
Is a convenience store valued on weekly turnover?+
Weekly turnover is often quoted in listings, but it is a poor guide to value because margins differ so much between tobacco, groceries, fuel and services. The valuation uses gross profit and the costs to earn it. Turnover is reported for context, and where an asking price is based on turnover alone, the report explains the gap.
Does the buyer of my shop need their own tobacco licence?+
Tobacco Licensing Victoria requires anyone selling tobacco to be licensed, with a licence for each location, and says transferring a licence to a new owner needs its approval. Until that is in place a buyer cannot lawfully sell tobacco from the store. The valuation treats approval as a condition of the sale. Your lawyer can confirm the process.
Can a buyer sell alcohol from settlement day?+
Only if the liquor licence transfer has been granted and they have the legal right to occupy the premises. Liquor Control Victoria says applicants should apply at least eight weeks ahead and decisions usually take about five to seven weeks. Sale contracts usually make settlement conditional on the transfer. The valuation assumes the transfer is obtained and says so.
My family works in the store without wages. How is that handled?+
Every hour worked by owners and relatives is costed at award rates, including weekend and evening penalties, because a buyer will need to pay someone to do that work. This often lowers the profit used in the valuation compared with the accounts. It gives a value a buyer can rely on and a lender will accept.
What does a store valuation cost and how long does it take?+
The fee is fixed before work starts and set by annual turnover: $1,495 + GST under $2 million, $2,495 + GST for $2 million to $3 million, $3,495 + GST for $3 million to $10 million, and a written quote above $10 million. Small reports take 2 business days and medium and large reports 3 business days, counted from when payment and all required information have been received.
- ·Tobacco licensing, vic.gov.au
- ·Transfer a liquor licence or permit, Liquor Control Victoria (vic.gov.au)
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Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed report in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
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Last reviewed 11 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne.