Auto Retail Agenda: 26 July 2021
25 July 2021
- CONSUMER CONFIDENCE ABOVE EXPECTATIONS
- SSANGYONG AIMS FOR 85-STRONG NETWORK
- SYTNER MOVES NORTHAMPTON JLR INTO NEW SITE
- BENTLEYS GROUP TURNAROUND
- RETAILER SEEKING CHINESE IMPORT DEAL COLLAPSES
- INCHCAPE SHARES JUMP 5.5%
- COMING UP: FCA statement on SPACs
- BOE: INFLATION SPIKE TEMPORARY
- NEW CONSUMER PROTECTION FOR SUBSCRIPTION SALES
Consumer confidence above expectations
July has seen UK consumer confidence rise for the six month in a row according to the respected GfK barometer.
In a positive statement for the retail sector, Joe Staton, client strategy director at GfK, said: “Consumer confidence edged ahead of its March 2020 pre-lockdown headline score by two points to -7 in July. This means it has now held firm or improved for six months in a row. Personal finance expectations for the next 12 months remain strong and there’s a dramatic jump this month in our major purchase sub-measure with shoppers agreeing that now is the ‘right time to buy’.
“The healthy seven-point rise in the major purchase measure aligns with strong retail growth figures that reflect the gradual unlocking of the UK high street and release of pent-up demand as Brits hit shops, restaurants and venues. However, threats from increasing consumer price inflation, rising Covid infection figures, and the looming end of furlough and the Job Retention Scheme could put the brakes on this rebound.
“Consumers are aware of these pressures, judging by the latest fall from -2 to -5 in their view of the general economy in the coming 12 months. What happens across the remaining summer months will frame consumer confidence for the rest of 2021 and beyond.”
Ssangyong aims for 85-strong network
Korean brand Ssangyong is aiming to grow from 68 to 85 dealers by the end of the year, according to UK managing director Kevin Griffin.
Talking exclusively to Auto Retail Agenda, Mr Griffin said: “We’re looking for around 80-85 sites. We think that’s the right number for the network to be at, and to get us good coverage over the country. We’re a bit short just now in Scotland. Although we have [recently] signed Station Garage in Aberdeen.”
Despite poor sales so far this year, Mr Griffin claims the second half of 2021 will see a significant boost thanks to greater supply.
* Read the full interview in August’s Auto Retail Bulletin
Sytner moves Northampton JLR into new site
Sytner has moved its two Jaguar Land Rover operations in Northampton into its new single Guy Salmon showroom in Swan Valley.
The new development has an 18-car showroom, 27-bay workshop and external parking for more than 800 cars.
The move follows the closure of the group’s Riverside and Abington Squire sites.
Bentleys Group turnaround
Citroen and Toyota retailer Bentleys Motor Group, based in Warrington, has reported a turnaround in results during 2020. The two-franchise business saw PBT swing from a loss of £35,802 in 2019 to a profit of £23,014 last year despite a slight drop in turnover.
WORLD NEWS
Retailer seeking Chinese import deal collapses
US importer HAAH has filed for bankruptcy after seven-years attempting to import China’s Chery cars into North America. According to CNet and Automotive News, HAAH had originally planned to build Chery cars in the US.
STOCKWATCH
Closing prices on 23 July 2021 and weekly change
Inchcape shares jump 5.5% ahead of interim results
Auto Trader 660.2p (-0.6p)
Cambria 78.0p (n/c)
Caffyns 450.0p (n/c)
Halfords 377.2p (+16.2p)
Inchcape 848.5p (+46.5p)
Lookers 63.3p 64.1p (+0.8p)
Marshall Motor Holdings 215.0p (-5.0p)
Motorpoint 350.0p (-15.1p)
Pendragon 16.4p (-1.7p)
Vertu 43.4p (+2.4p)
COMING UP
Tuesday, Motorpoint AGM
Tuesday, FCA to issue police statement on special purpose acquisition companies (SPACs)
Thursday, Inchcape interims
Thursday, Nationwide house price index
MONEY MATTERS
BoE: Inflation spike temporary
Bank of England deputy governor Ben Broadbent believes rising inflation is temporary due to rises in good prices, according to a BBC report. The BoE expects inflation to go beyond 3%, but covid-related economic uncertainties remain.
New consumer protection for subscription sales
Consumer protection laws will be overhauled to better cover online sales including subscriptions and larger one-off payments such as for used cars, according to business secretary Kwasi Kwarteng.
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