Sytner Group, one of the most profitable dealer groups in the UK, has announced a significant restructuring of its CarShop used car supermarket brand following a strategic review. CarShop staff were informed that the business, ranked second in profitability in the Car Dealer Top 100, will be "shifting its focus." The restructuring includes the potential rebranding of many CarShop locations into Sytner Select Approved Used Cars superstores and the possible closure of at least one site. Additionally, Sytner is in advanced negotiations to sell a portion of its CarShop stores to another party.

CarShop currently operates across several locations, including Bristol, Cardiff, Doncaster, Manchester, Northampton, Norwich, Nottingham, Sheffield, Swindon, Warrington, and Wolverhampton. The Wakefield site has already been rebranded as Sytner Select. Sytner, owned by Penske Automotive, which also uses the CarShop brand in America, purchased CarShop for over £70 million in 2017 and expanded the brand globally in 2021.

A spokesperson for Sytner elaborated on the company's plans in a statement to Car Dealer Magazine. The spokesperson confirmed that the group is consulting with the CarShop team about the potential rebranding, following a successful pilot at a former CarShop location. The spokesperson also noted that the group is negotiating the sale of some CarShop locations and considering the closure of one site, emphasising that the priority is to protect as many jobs as possible while ensuring the business's long-term success.

Despite these assurances, CarShop staff have expressed concerns about potential job losses, although the company has not provided specific details on the extent of these losses. The changes come amidst broader industry challenges, with a noticeable shift in the used car supermarket model in the UK. Several major players, including Cazoo, Pendragon's CarStore, Peter Vardy's Carz, and Inchcape's Bravoauto, have exited or significantly downsized their operations due to supply issues and declining demand for used cars, particularly electric vehicles.

Steve Young, managing director of automotive research firm ICDP, highlighted the high fixed costs associated with standalone used car supermarkets. He noted that these costs, combined with the current restricted supply of three-to-four-year-old used cars resulting from the COVID-19 pandemic, have pressured these business models. Additionally, the return of traditional new car supply from manufacturers has limited the price increase potential for used cars, making them less competitive against new cars with manufacturer-supported finance deals.

Young pointed out that while the supply issues are expected to resolve over the next few years, the high fixed costs of standalone used car supermarkets have accelerated the need for structural changes in the industry. Sytner's decision to rebrand and restructure its CarShop operations reflects these broader market dynamics and the need for businesses to adapt to changing conditions.

Sytner's strategic review and the resulting changes underscore the evolving landscape of the used car market in the UK. As the company transitions its CarShop brand to Sytner Select Approved Used Cars superstores and negotiates sales and potential closures, the impact on employees and the broader market remains a critical concern. However, Sytner's proactive approach aims to secure the long-term success of the business in a challenging environment.

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