Motorpoint targets online market as it reveals £2bn ambition
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Motorpoint, the Derby-headquartered car retailer, has revealed plans to invest heavily in its online business and double turnover to £2bn.
The move comes after the firm revealed a fall in both revenue and profits for its full-year to March 31. Turnover for the year fell almost 30% to £721.4m, while profit before tax almost halved – down to £9.7m.
Motorpoint’s new strategy will see it aim to grow its online revenue to more than £1bn a year and open 12 new sales and collection branches. It also wants to leverage its Auction4Cars.com platform to accommodate new supply channels.
Mark Carpenter, CEO of Motorpoint, said: “I am delighted with our performance in the year given the external challenges faced as we have transformed our capability by continuing to invest in our E-commerce execution. We now have a fully scaled home delivery service, an integrated, end-to-end digital customer journey, additional capacity to grow through our increased preparation and branch presence, and an ambitious growth strategy to more than double revenue and profit in the medium term through increased investment in technology, marketing, data and talent.
“Motorpoint is already well advanced on its journey to become the dominant E-commerce led omnichannel used car retailer in the UK with an unrivalled consumer offering in the nearly new market, coupled with a digital-led auction channel with huge potential. We will continue investing in the business to achieve our medium term goal of at least doubling revenue and growing E-commerce revenue to over £1bn.
“I believe Motorpoint is the best in class in the nearly new car market with leading national brand awareness metrics, an unrivalled heritage, enhanced digital presence and expertise that will ensure we continue to strengthen our competitive position. We now have an opportunity to grow rapidly as we continue our transformation into an E-commerce led business with huge potential.”