Experts are also now looking at BCA offshoot Cinch, which raised £1bn in May and claims to be growing faster than Cazoo, although this is disputed by Mr Chesterman.

https://bit.ly/3mYkxHB

Pendragon loses ‘racist culture’ unfair dismissal case

A salesman has won an unfair dismissal case from Pendragon Porsche Sutton Coldfield. An “extremely laddish” culture rife with sexism, racism and homophobia had developed at the retailer, said the judge. Employee Shailesh Rathod, the only non-white salesman at the retailer, raised a grievance with bosses but himself was later dismissed on charges of race and sexual harassment via WhatsApp.

“This particular laddish culture developed a more sinister level as it was infected by the overt prejudices, opinions and attitudes of some of its members,” said Judge Clark at Nottingham Employment Tribunal Centre. ‘They amounted to deliberate and aggressive expressions of misogyny, hostility towards homosexuality, and racism.”

A spokesperson for Pendragon UK said: ‘We were appalled by Mr Rathod’s allegations in mid-2020 and immediately set about investigating. The examination resulted in the dismissal and/or resignation of those involved and we continue to reinforce our policies and the ongoing training to help our team.

“Since the appointment of CEO, Bill Berman, in March 2020, our leadership team has introduced extensive training to create a more inclusive and accepting culture. Additionally, we have also updated our discrimination and inclusion policy.”Compensation for Mr Rathod will be determined at a later date.

https://bit.ly/3ymVz6E

 

Lotus terminates retailers

Lotus has terminated contracts with several UK franchised retailers including Maidstone Sports Cars, Hangar 111 in Woodbridge, SJ Sports Cars in Crediton, Rapid Mechanical services in Romford “and at least four more”. A spokesman told Autocar the terminations were mutual and due to retailers being unable to make the necessary investment, or not being in a target location for Lotus.

As well as standalone retailers, Lotus is also now partnering with national retailers including Hendy and FG Barnes.

https://bit.ly/3zqVUGE

 

Supermarkets to remove plastic Covid screens

Major supermarket and retailers are preparing to remove plastic covid screens at checkouts. Firms are discussing with contractors how to recycle the screens, rather than commit “another plastic crime”. This would also help retailers recover some of the cost of purchasing them. Sandwich chain Pret has already removed its plastic screens.

https://bit.ly/38pcqel

 

JLR one-year waiting list

JLR has warned major leasing firms it is facing lead times in excess of a year for 53 of its model variants. These include the profitable Land Rover Defender and Range Rover Evoque. Leasing companies can quote and order on their systems but “your supplying retailer will not be in a position to accept orders for these derivatives due to extended lead times”, said the firm.

https://bit.ly/3zrHYMP

 

 

WORLD NEWS

Prime for sale after ‘Ponzi’ claims

The entire Prime Automotive Group portfolio of 31 retailers and three repair centres in the northeastern US is up for sale. It is one of the largest auto retailers in the country – whose parent company has been accused by the SEC of operating a Ponzi-like scheme. Competitors seeking to buy individual stores have been turned down.Prime retailed 31,529 new vehicles in 2020.

https://bit.ly/2UXpZPf

 

Slow, profitable August for US new car retail

Reduced inventory due to the chip crisis saw US retail sales record a double-digit decline in August. This year’s sales are below the level of summer 2020. “August is historically a peak selling month,” said JD Power’s Thomas King.

“The industry has insufficient inventory at dealerships to meet strong consumer demand. The consequence is that the retail sales pace is depressed, but transaction prices are elevated.”

https://bit.ly/38nb9Ey

 

 

STOCKWATCH

Closing prices on 27 August 2021 and weekly change

Pendragon up nearly 13%

Auto Trader Group 626.2p (-8.8p / -1.3%)

Cambria 82.25p (+1.25p / +1.5%)

Caffyns 450.0p (n/c)

Halfords 367.0p (-3.4p / -0.9%)

Inchcape 889.5p (-12.0p / -1.3%)

Lookers 67.0p (-0.7p / -1.0%)

Marshall Motor Holdings 260.0p (+12.0p / +4.7%)

Motorpoint 337.0p (+4.5p / +1.3%)

Pendragon 21.0p (+2.45p / +12.3%)

Vertu 52.4p (+1.4p / +2.7%)

 

 

COMING UP

Tuesday, UK consumer credit

Wednesday, BRC shop price index

Wednesday, 71-plate begins

 

 

MONEY MATTERS

Business rates ‘indefensible and outdated’

The current business rates system is “indefensible, regressive and outdated,” says the Federation of Small businesses, and is stopping small companies from investing post-Covid. The tax, which raises £30bn a year, unfairly punishes bricks-and-mortar businesses while sparing online rivals, say critics. The tax itself is also claimed to have grown disproportionately.The government will release the findings of a review into business rates in the autumn.

https://bit.ly/38nQWP1

 

4 in 5 department stores lie empty

Since the collapse of BHS five years ago, 83% of department stores in the UK have closed. The majority of shuttered stores remain vacant. The numbers “highlight the acceleration of change in the retail sector in retail years, which the pandemic has only exacerbated,” head CoStar Group head of analytics Mark Stansfield.

https://bbc.in/3BoeMa0