Skip advert
Advertisement

‘The retail revolution putting car dealers in jeopardy’

Editor-in-chief Steve Fowler thinks dealerships could become places to 'try' rather than 'buy' as more and more car customers turn to online purchasing

As dealers threw open their doors to welcome a surprising number of eager customers back into showrooms, so the bosses of dealer groups and car companies accelerated their plans to offer end-to-end digital sales channels. That could see dealers becoming ‘try’ rather than ‘buy’ outlets, and customers – if they want – only interacting with retailers over the internet.

Advertisement - Article continues below

A few dealer and car company bosses have admitted that they had been “caught napping” when it comes to their digital offerings during lockdown. Not so the Managing Director of Ford, Andy Barratt.

However, when I caught up with him recently, he did reveal that Ford’s upcoming online sales channel – due to launch later this summer – could mean job losses in the retail business. “I think some dealers will say, ‘Do I need all these sales staff any more on the basis that I’m so digitally enabled in a way that I never was before?’,” he said.

Of course, not everybody wants to buy online, and I’ve had plenty of correspondence from people who much prefer real face-to-face contact (now at a social distance) at a dealer rather than doing a deal via a video link.

There is a growing concern, though, that your local dealer might not be very local soon. Put simply, many of the UK’s biggest dealers are in trouble, with the CEO of one of the UK’s most successful dealer groups telling me, “We’re all vulnerable.” The value of dealer businesses is at a real low right now.

That could play into the hands of Sergey Petrov. The name won’t ring any bells for you, but he set up Russia’s biggest car dealer group and is eyeing some of the ailing retailers in the UK.

Petrov has a reputation you might not expect for a Russian businessman; he’s widely liked by the global car makers he represents in Russia, and known for working in a very ‘western way.’ He might be about to make a big impact on the upcoming automotive retail revolution.

Do you agree with Steve? Let us know your thoughts in the comments section...

Skip advert
Advertisement
Editor-in-chief

Steve Fowler has been editor-in-chief of Auto Express since 2011 and is responsible for all editorial content across the website and magazine. He has previously edited What Car?, Autocar and What Hi-Fi? and has been writing about cars for the best part of 30 years. 

Skip advert
Advertisement

Recommended

Driving test bookings: huge waiting lists play into the hands of fraudsters
News

Driving test bookings: huge waiting lists play into the hands of fraudsters

Crooks and chancers are making a packet out of the failing UK driving test system, and its learner drivers who are paying the price
7 Sep 2023
New car delivery times 2023: how long will you have to wait?
New car waiting times
Features

New car delivery times 2023: how long will you have to wait?

No one likes having to wait for their new car so we called key manufacturers to get their latest UK lead times
12 Jun 2023

Most Popular

Road tax set to rise in April: here’s how much more you’ll pay
Road tax documentation
News

Road tax set to rise in April: here’s how much more you’ll pay

Drivers with newer cars will now pay £10 more per year, although the biggest gas guzzlers fare even worse
28 Mar 2024
Posh new trim level for Dacia Sandero while the Sandero Stepway gets more power
Dacia Sandero - front
News

Posh new trim level for Dacia Sandero while the Sandero Stepway gets more power

Both the Sandero and Sandero Stepway ranges have been tweaked, gaining more safety features to meet the latest regulations
26 Mar 2024
Huge Audi new car blitz to bring us 9 models in 2 years
Upcoming Audi models - four-way image
News

Huge Audi new car blitz to bring us 9 models in 2 years

After a quiet few years, the German giant is gearing up for its biggest product onslaught to date
25 Mar 2024