Some really great ideas within this article by Auto Trader CEO Nathan Coe. What can car dealers do in the current market to stand out from the crowd? No surprises on the key themes:
1) Data-led decision making;
2) Building a digital retail foundation; and,
3) Thinking hard and being creative about how to source vehicles, (particularly used).
The prevailing market conditions present a challenge, but there is opportunity out there for those that have the creativity and desire to chase it down.
But what is the relevance of these themes to M&A and transactions?
See below for the areas of overlap:
- Data and digital investment benefit from economies of scale which creates pressure for consolidation.
- Acquisitions can be a useful tool to unlock new sources of stock, acquiring new supply agreements and existing relationships.
The good retailers probably do 100 things well, that’s the nature of the job, it is so difficult because there are 100 things to do and doing them all is incredibly difficult to stay on top of.