Wednesday, February 21, 2024
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CMC closes two retail branches

CMC Motorcycles has closed its Stoke-on-Trent, Staffordshire, dealership as part of restructuring to cope with a potential tighter retail market.

Following an autumn review of operations, CMC has also closed its Chesterfield Cycle Centre in Calow, Derbyshire, and made around 25 staff redundant from a group workforce of 170.

“We had to ask ourselves ‘What do we need to do to if the motorcycle trade takes a downturn as it did in 2017?’,” says MD Ross Feltham, “so we have restructured CMC to be leaner and fitter.

“We are glad we did, because despite a good start to January, snow in February and the forecast for a cold month in March, sales in early spring this year could be lower than 2017.

“We are always optimistic, especially when heading into a new season, but looking at how the last few months of last year performed and listening to people in the trade we couldn’t be confident that there would be growth in 2018, especially with the decline in new bike sales nationally last year. So we decided to start tightening our belts,” says the leading Yamaha and used-bike dealer whose family-run business had seven retail outlets until the closure of Stoke and Calow in January.

The Cycle Centre at Calow was closed because after three years of trading it was just not profitable enough, and cycles wasn’t core to CMC’s main business of retailing motorcycles, led by used sales.

One important aspect of the CMC review is the cost of buying in used bikes. MD Feltham says that over the past three years used values have risen by £1000 on average because the cost of new bikes have gone up considerably over the same period.

He added that further pressure from the set-up at Manchester played its part in trimming a smaller operation. Manchester set-up costs include new Yamaha showroom corporate identity which is being introduced across Europe. A late season opening is now the plan.

“It’s always a difficult decision to close branches and make redundancies and we did not do this without looking at all the options and discussing it with our key stakeholders. However it was the right thing to do and CMC is now stronger for it heading into 2018 and beyond,” he concludes.

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