UK business analysis firm Plimsoll Publishing has just released details of an evaluation it conducted of the motorcycle retail sector. It warns that the trade is at an alarming ‘tipping point’, with many firms facing problems.
Plimsoll says that 118 of the 334 leading retailers it assessed are in what it calls “financial danger”, thanks to a combination of rising costs, tighter regulation, fluctuating demand, shifting customer expectations and technology changes. External pressures on the trade are mounting, according to the report: some firms are struggling to adjust, while others are already reaping rewards from investment and innovation. With pressures seemingly set to intensify, demand for efficient, technology-driven solutions is likely to grow, says Plimsoll.
On the upside, Plimsoll says that 161 companies in its survey are generating good profits, while a group of high-growth firms is largely shaping the future of the market. Eight companies grew sales by more than 10% in the last year, significantly outpacing the sector’s average growth of 2%, with 179 retailers reporting higher sales. But 175 firms saw declines in growth, and profitability remains modest, according to the report.
Plimsoll closes its analysis stating: “The UK motorcycle dealer market is split between loss-makers and leaders, but overall trends suggest steady demand for companies that can adapt. The winners will be those that consolidate effectively, innovate technologically and align closely with a market at a turning point.”
More information on the Plimsoll industry report at www.plimsoll.co.uk.