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Market for survival
Page 127
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• THE ICC Business Ratios report on Motor Goods Distributon says: 'There seems to be little chance of the small, privately owned independents disappearing in the short term."
The key to long-tern success, it says, particulary for retailers, but also in wholesailing and tyre distribution will be more active marketing. Kwikfit and Unipart had shown what can be done.
The report analyses and compares the financial performance of 89 companies in motor goods distribution over three years ended in April 1988. The industry is divided into three subsectors: motor goods wholesalers (41 companies); retailers (15); and tyre distributors (33). Taking the previous year's sales turnover as a measure, the largest subsector was tyre distributors with total sales of 255 million.
The margins on tyres are lower than those on exhausts, but tyres sales increased. As a group, the retailing sector earned the highest average margins. The Unipart Group led this group. Circle Turbo 54 for more information.