Supermarkets face greater stock shortages than independent or franchised dealers

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【Summary】Stock shortages are expected to have a greater impact on supermarkets than independent or franchised dealers in the coming year. Supermarkets are particularly vulnerable because they primarily deal with cars that are three to five years old, and there is a shortage of these vehicles due to low new car sales. This will result in supermarkets having 39% less available stock compared to 2019.

FutureCar Staff Sep 15, 2023 4:20 PM PT

Supermarkets face greater stock shortages than independent or franchised dealers

Stock shortages in the coming year are expected to have a particularly severe impact on supermarkets. Rachael Jones, the director of automotive finance at Auto Trader, stated at a recent conference that supermarkets will be hit harder than independent or franchised dealers. This is because supermarkets primarily deal with cars that are three to five years old, and there is a shortage of these vehicles due to low new car sales in recent years.

The lack of new car supply from 2020 onwards will significantly affect the availability of three to five-year-old cars. According to Jones, there will be 39% less stock available compared to 2019. Supermarkets, whose stock in recent years mostly falls within this age bracket, will be the most affected by this change.

The impact of the stock shortage is already being seen in the market. Peter Vardy, for example, has closed two CARS outlets and expects a dent in profits in 2022 due to the shortage of stock. Motorpoint, on the other hand, has announced that it will be delaying further expansion.