Car retailers’ average return on sales (RoS) of 0.94% during a heavily COVID-19 impacted 2020 has been hailed as “‘a very strong performance” by ASE chairman Mike Jones.
Compiling his monthly profitability KPIs for the sector, Jones revealed that, while schemes such as the Government’s Coronavirus Job Retention Scheme (CJRS) had not allowed dealers to match their trading results from 2019, they had delivered a strong result nonetheless.
Back in November, Jones had reported that UK car retailers were “within touching distance” of the profitability they achieved in 2020 after delivering £110,000 profit-per-site in the key number plate change month.
But a return of COVID-19 lockdown measures during Q4 hampered the sector’s recovery following its strong Q3 bounce-back.
Despite December’s continuation of lockdown measures across the UK, however, the average car retailer lost “just under £3,000” in the last month of the year, Jones said, compared to £1,700 a year earlier.
He added: “A slight worsening in the December loss reduced the return on sales slightly…