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Are physical car dealerships coming to an end?

Posted on January 19, 2018

A mass industry survey conducted by Accountancy firm KPMG has warned that the vast majority of automotive industry leaders predict that ‘up to 50% of all “physical retail outlets” could close in just seven years.


This has come about with the steady rise in purchasing cars through online platforms, and the shift of retailers and manufacturers to online sales. Citroen took a stance on this earlier this year, setting out its goals to sell 10% of its cars online by 2021, Hyundai and Peugeot have also presented their online sales platforms as the industry slowly catches up with the convenience of online retail.


Over half of the 907 leaders that were surveyed anticipated that at least 30% of physical forecourts will close by 2025, and the report as a whole is being treated as a ‘need to rethink retail concepts and business models, particularly with customers purchasing more of their goods and services at the touch of a button.’


Switching to online platforms will act as a welcome relief on resources for manufacturers and retailers, no longer having to rely on physical locations for the sale of their products. Conversely, from a consumer perspective, having an increased focus on the sale of cars on online platforms adds a much needed layer of convenience to the car-buying process, opening doors up to customisation and bespoke product marketing.