Supermarkets to face more severe stock shortages than independent or franchised dealers

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【Summary】Supermarkets will be hit harder by stock shortages in the coming year, especially in the 3-5 year old car market, due to low new car sales in recent years. This will result in a significant decrease in available stock compared to 2019. Supermarkets have already been affected, with some outlets closing and profit dents expected. Motorpoint has also stalled expansion due to the stock shortage.

FutureCar Staff Sep 15, 2023 6:19 AM PT

Supermarkets to face more severe stock shortages than independent or franchised dealers

Stock shortages in the coming year are expected to have a significant impact on supermarkets. According to Rachael Jones, the director of automotive finance at Auto Trader, supermarkets will be worse off compared to independent or franchised dealers. This is because supermarkets primarily deal with cars aged three to five years old, and there is a shortage of these vehicles due to low new car sales in recent years.

Jones stated that the lack of new car supply will greatly affect the 3-5 year old car market, with 39% less available stock compared to 2019. Supermarkets, whose stock in recent years mostly falls within this age bracket, will be particularly affected by this change.

The impact of stock shortages is already being felt in the market. Peter Vardy has closed two CARS outlets and announced a decline in profits for 2022 due to the lack of stock. Similarly, Motorpoint has decided to halt further expansion in response to the stock shortage.