Looking forward to a better year in 2021

Last year was one in which nearly all events were seen through the prism of the Coronavirus, with showrooms closing in March and opening in early June, hammering new and used car sales with aftersales taking a hit as well.

That said, dealers in 2020 showed how resilient they can be. While there were casualties, and this is a great shame, dealers learnt fast. The performance in the second lockdown in November was much better than that in March.

The digital tools were better, more click and collect, and better communications with customers through enhanced CMS.

During the pandemic staff were put on government furlough but for many the scheme was not sufficient, and they faced redundancy. Many dealer groups have seen job cuts of 20% and more due to declining revenues. For training and apprentices much activity was put on hold.

So, what are the prospects for recruitment in 2021? In our Recruitment Survey in the January issue we asked 200 dealers was it easier or more difficult to recruit skilled staff now compared to a year ago? A quarter (26%) of dealers said it was more difficult than a year ago while 29% said it was slightly or significantly easier than this time 12 months ago.

We also asked dealers had they noticed any change in the number of candidates applying for employment in their business since the summer? According to the survey of 200 dealers a notable 41% had experienced a small or significant rise in the number of applications for jobs, indicative of the impact the coronavirus has had on the retail sector.

This issue includes the MT Top 50 Independent Dealers survey, which looks at the performance of the biggest independent dealers in the UK. I

Used cars have proved lucrative for all parties. Franchised dealers have piled in with their own supermarkets and expanded schemes while independents have upped their game. The market is more competitive than every with new entrants with massive financial backing.

Compared to last year’s report – which referenced 2018 – the combined turnover of the MT Top 50 fell three per cent to £5.5bn this year. But the businesses in this year’s MT Top 50 are not the same as last year’s. Comparing the total turnover of the 37 businesses with up-to-date results appearing this year and last, turnover increased by 1.8%

Finally, it was great to see so many entries for the Motor Trader Awards and the excellent quality of those entries. The awards are in their 30th year and celebrate the very best in motor retailing. We look forward to seeing the retail sector gather together once again in 2021.