The big boys began experimenting with vehicle sales in the 1980s, but it was short-lived. Asda ended a brief venture with cars when it pulled out after problems negotiating acceptable terms with dealers. Its fingers were clearly burned and a spokesman for the multiple says: "We would never say never, but we have no current plans to get involved in car sales."
Tesco began selling cut-price scooters imported from the Far East and it too pulled the plug on the venture. Repairs and servicing were outsourced to an agency, which is still handling the work.
Tesco says the project taught it a lot about sourcing and aftercare, which it would need to tackle if it launched a long-term vehicle sales programme.
In 1999, however, action began on the internet, and a spokesman for Tesco admits: "It is the worst-kept secret that we're looking very closely at car sales and if we did go into it, it would be via Tesco.com."
One City analyst confirms: "Tesco would be the main grocery retailer to consider a vehicle sales venture, because it has the internet capability. But at the moment it has other things to concentrate on, such as the integration of T&S and store development."
Market exploration
Wholesaler Makro has seen the potential of the internet and launched a Makro-branded joint venture with online company Motor Solutions in September, selling cars and commercial vehicles.
The service is advertised in Makro depots, where select vehicles are displayed outside, while Motor Solutions deals with contracts and servicing. Chief executive of Motor Solutions Derek Cook explains: "We design and manage the website under the Makro brand. Our contacts source cars from the UK and Europe at factory prices, while Makro generates the publicity and customer loyalty to drive sales. Customers can make purchase requests online, but the majority choose to do so through a call centre.
"Once the order has been processed, the vehicle can either be collected from a pick-up point or delivered directly to the customer."
Morrisons has formed a partnership with internet car sales company Lookers and rents out space in three stores where Lookers has internet-linked terminals which customers can use directly or ask for help from sales staff. In addition the company can use car parks at Morrisons' stores to display vehicles.
Lookers says it approached Morrisons because the two companies' values and retail models were alike but it does not plan to build relationships with other retailers.
"In general, we believe grocery retailers should stick to grocery retailing."
Buying group Nisa-Today's is also checking out the car market through its Miles More Value venture with a long-term lease company.
The scheme gave independent Nisa member Jempson's its first taste of the car market, and it enjoyed it. In September and October a Vauxhall car was parked outside its Peasmarsh, Sussex, store to flag up the leasing service negotiated by Nisa and footfall increased.
Joint owner Steve Jempson says: "This has given us an insight into the volumes of business we can deal with. We're extremely pleased with the results and we're working on a programme of promotions for next year.
"The leasing business is the route we want to take and displaying the cars has been a big draw, because people like to see the real thing, rather than a leaflet or a brochure."
Nisa-Today's size enabled it to get a good deal for its customers, according to Jempson  the monthly rent on a Vauxhall Corsa was £99.
Currently Nisa's business partnership is with just one manufacturer, Vauxhall, but it is considering rolling it out to other manufacturers. But if wholesalers and smaller supermarkets are muscling in on the car market, why do the multiples appear to be dragging their heels?
Motor Solutions' Cook believes negotiating the right aftercare system is part of the answer.
"The service network is the key. If Tesco was handling car sales, the last thing it would want is someone ringing up stores and asking for their car to be seen. Having access to a central service centre to sort out these queries is vital."
The other barrier, says Cook is a lack of space to display cars on site. "A multiple cannot afford to tie-up space outside their stores with cars," says Cook.
It's unlikely, then, that the multiples will use their retail space to display cars in the near future, although in the US Wal-Mart has begun to lease space to dealers. However, the internet increasingly appears to be the driving force of the future and it is Tesco that looks likely to lead the way with its superior dot.com operation.
{{ANALYSIS }}
Tesco began selling cut-price scooters imported from the Far East and it too pulled the plug on the venture. Repairs and servicing were outsourced to an agency, which is still handling the work.
Tesco says the project taught it a lot about sourcing and aftercare, which it would need to tackle if it launched a long-term vehicle sales programme.
In 1999, however, action began on the internet, and a spokesman for Tesco admits: "It is the worst-kept secret that we're looking very closely at car sales and if we did go into it, it would be via Tesco.com."
One City analyst confirms: "Tesco would be the main grocery retailer to consider a vehicle sales venture, because it has the internet capability. But at the moment it has other things to concentrate on, such as the integration of T&S and store development."
Market exploration
Wholesaler Makro has seen the potential of the internet and launched a Makro-branded joint venture with online company Motor Solutions in September, selling cars and commercial vehicles.
The service is advertised in Makro depots, where select vehicles are displayed outside, while Motor Solutions deals with contracts and servicing. Chief executive of Motor Solutions Derek Cook explains: "We design and manage the website under the Makro brand. Our contacts source cars from the UK and Europe at factory prices, while Makro generates the publicity and customer loyalty to drive sales. Customers can make purchase requests online, but the majority choose to do so through a call centre.
"Once the order has been processed, the vehicle can either be collected from a pick-up point or delivered directly to the customer."
Morrisons has formed a partnership with internet car sales company Lookers and rents out space in three stores where Lookers has internet-linked terminals which customers can use directly or ask for help from sales staff. In addition the company can use car parks at Morrisons' stores to display vehicles.
Lookers says it approached Morrisons because the two companies' values and retail models were alike but it does not plan to build relationships with other retailers.
"In general, we believe grocery retailers should stick to grocery retailing."
Buying group Nisa-Today's is also checking out the car market through its Miles More Value venture with a long-term lease company.
The scheme gave independent Nisa member Jempson's its first taste of the car market, and it enjoyed it. In September and October a Vauxhall car was parked outside its Peasmarsh, Sussex, store to flag up the leasing service negotiated by Nisa and footfall increased.
Joint owner Steve Jempson says: "This has given us an insight into the volumes of business we can deal with. We're extremely pleased with the results and we're working on a programme of promotions for next year.
"The leasing business is the route we want to take and displaying the cars has been a big draw, because people like to see the real thing, rather than a leaflet or a brochure."
Nisa-Today's size enabled it to get a good deal for its customers, according to Jempson  the monthly rent on a Vauxhall Corsa was £99.
Currently Nisa's business partnership is with just one manufacturer, Vauxhall, but it is considering rolling it out to other manufacturers. But if wholesalers and smaller supermarkets are muscling in on the car market, why do the multiples appear to be dragging their heels?
Motor Solutions' Cook believes negotiating the right aftercare system is part of the answer.
"The service network is the key. If Tesco was handling car sales, the last thing it would want is someone ringing up stores and asking for their car to be seen. Having access to a central service centre to sort out these queries is vital."
The other barrier, says Cook is a lack of space to display cars on site. "A multiple cannot afford to tie-up space outside their stores with cars," says Cook.
It's unlikely, then, that the multiples will use their retail space to display cars in the near future, although in the US Wal-Mart has begun to lease space to dealers. However, the internet increasingly appears to be the driving force of the future and it is Tesco that looks likely to lead the way with its superior dot.com operation.
{{ANALYSIS }}
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