Retailer hits out at BMW
04 November 2018
BMW and MINI retailer William Morgan has warned that profits should not be sacrificed for sales volume and that some in the network might struggle to make money from the business.
Unveiling a loss for 2017 of £486,000 from a profit of £1.6 million the year before and a 10% drop in turnover from £193.5m to £173.6m, the directors blamed both the sales drop and discounting to hit the manufacturers’ sales targets for the reversal.
Filing its 2017 accounts, the Northampton car and motorbike retailer said: `volume targets exceeded natural customer demand (and) put considerable pressure on retained gross margin and weakened our overall profitability.’ It also noted `Future growth in volumes driven by BMW Group has the potential to continue to dilute margins in pursuit of volume targets…the pressure on retained margin will continue until supply equals demand.’