Internet used car parts sales continue to grow, as Car Parts Suppliers consolidate retail operations
The Financial Times (27 Sep 08) reported that Motor World, the new car parts and accessories group, has gone into administration, with the loss of 300 jobs. The Administrators, BDO Stoy Hayward, have closed 40% of its national UK network of car parts retail units.
Pacific Retail has purchased the bulk of Motor World car parts shops (approximately 135). What factors brought about Motor World’s demise? Well several scenarios have been put forward, but I can tell you some of mine. Analysts point to the worst UK Automotive trading figures this summer, since the 1960’s. Did not the rising demand for car parts on the internet, using systems like CarSpareFinder, play a major factor?
This week (1 Oct 08) the Automotive Industry learned that Wembley based Euro Car Parts, one of biggest suppliers of vehicle parts in the UK has taken over a Yorkshire competitor, the excellent Sheffield based LSUK. It claims this move will protect the future of 600 jobs. LSUK’s has over 50 car parts outlets and subsidiaries M I Diesel Products, Protech Automotive (UK) and Yeovil Rewind.
Likewise, the UK Automotive Car, Van and Bike Parts sectors, perhaps mirroring the Global banking industry, is involved in widespread consolidation as firms reorganise and reposition themselves to deal with any downturn in the Global economy. The internet is providing the growth area for car parts, and maintains its volumes despite the obvious slowdown on the high street. The high cost of fuel and transport is another factor online driving car parts sales. The single biggest factor has to be the time saving, the ease and simplicity of locating and purchasing car parts online, and as importantly, the outstanding value-for-money in purchasing used car parts are the principal ‘drivers’ of revenue growth. The UK Dismantlers and breakers, like those members of the CarSpareFinder Business Community, are best able to take advantage of the new opportunities for car parts sales, supported by an ever increasingly sophisticated next day delivery courier network which delivers very good customer service and achieves the high levels of customer satisfaction enjoyed by CarSpareFinder breaker clients, and consumers alike.
