Profits squeezed at The Car People

CAR supermarket chain The Car People has seen profits squeezed as it cuts prices to target budget conscious consumers.

The company, which has an outlets in Manchester, as well as Sheffield and Wakefield, saw turnover fall 5% as the number of cars dipped slightly, by 1.5%.

Pre-tax profits for the year came in at £3.3m, down from £4.2m the previous year but described by chairman Martyn Carnell as “a very healthy result in a depressed economy.”

The year saw the company open service centres at two of its sites to cater for customers who have bought cars to access aftersales, MOT and cosmetic services.

Writing in the company’s latest directors’ report, Mr Carnell says the move will help establish a “more comprehensive relationship with the customer” which will help attract them back to The Car People when they next want to buy a car.

The company has also invested in its web presence, with a new mobile website attracting more than 200,000 visitors in its first six months.

Turnover for the year to the end of April fell from £139.5m to £132.5m while the company finished the year holding £5.4m in cash.

Gross profit margin fell from 5.8% to 5.6%.