Despite stories of the economic gloom continuing to dominate the headlines, many car retailers across the UK are optimistic about the prospects for their businesses in 2012, according to the results of a new grs survey.
Nearly a quarter (23%) of retailers completing the online survey are more upbeat than they were at the start of 2011, with more than a third (38%) believing the outlook is just as good as it was 12 months ago. In contrast, just 39% of all those questioned are less optimistic about the year ahead.
While such optimism may at first glance seem surprising, it chimes with the views of grs Managing Director Theo Kortland, who believes the key is to adapt to the challenging conditions. “Without doubt, there’s still a market. People still need their cars to get to work, go shopping or take the children to school. That hasn’t changed,” says Theo.
“They may take the car out less frequently and drive fewer miles, but people are continuing to drive and will look to replace their cars too,” he continues. “Nowadays they may look for something smaller and more economical, and that may well be their motivation to buy another car, to keep costs down and save money in the long-run. In turn, that can be an opportunity for retailers to tap into.”
Moving on to the main opportunities for growth in the year ahead, the survey results reinforced the sense of cautious optimism, with a quarter (26%) of retailers identifying cars between 12 and 18 months’ old, while more than a third (38%) cited those aged between 18 months and three years. Interestingly, 29% believe commercial vehicles will present the greatest opportunities in 2012, highlighting just how many are adapting their businesses to the changing conditions.
“The message for all of us is clear,” continues Theo. “We shouldn’t be spending our time worrying about things we can’t control and over which we have no influence, such as inflation, the cost of petrol or the broader economic conditions. Instead we need to channel our energy into getting our offer right, and then shouting about it to make sure everyone knows.”
Theo believes that having some older vehicles on the forecourt will have a role to play in tempting potential buyers in, they should only be seen as part of the solution. “As every retailer knows, footfall is important and it’s essential to create a proposition that’s sufficiently attractive to encourage people to take a look.
