‘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.

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...

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. 

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
London Congestion Charge: 20-year anniversary, map, times, exemptions and full details
Congestion Charge
Tips & advice

London Congestion Charge: 20-year anniversary, map, times, exemptions and full details

The UK’s first congestion charge has been in place for 20 years. Has it been a Success or failure? The debate rages on...
17 Feb 2023

Most Popular

New Renault Scenic 2023 review: the famous nameplate returns in style
Renault Scenic - front
Road tests

New Renault Scenic 2023 review: the famous nameplate returns in style

We get behind the wheel of new all-electric Renault Scenic to see what all the fuss is about
27 Nov 2023
New 2024 Dacia Duster: third generation of Europe’s best-selling SUV revealed
Dacia Duster - front
News

New 2024 Dacia Duster: third generation of Europe’s best-selling SUV revealed

Dacia has taken the wraps off the latest Duster, which arrives with a new look and fresh technology
29 Nov 2023
“Renault is taking over as the manufacturer of cars for the people”
Opinion - Renault Twingo
Opinion

“Renault is taking over as the manufacturer of cars for the people”

Mike Rutherford thinks Renault is doing more than any other manufacturer when it comes to making affordable electric cars
26 Nov 2023