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Desira reveals two tier retail strategy

Desira, the East Anglia-based motor group, has unveiled a two-tier retail strategy that will see it open multi-franchised sites in small towns and solus franchises in large conurbations as it strives to double turnover.

The group acquired the Citroen franchise for Great Yarmouth and Lowestoft at the start of the year and has developed the main showroom in Great Yarmouth into a multi-franchised site with Nissan and Fiat.

“This is just the start of many exciting and innovative advances in store for Desira throughout 2004. As a company we are continually positioning ourselves to make sure we meet our customers' needs every time,” says John Pochin, group operations director.

Over the next three years, the group plans to double its turnover from £75m to £150m through a combination of organic growth and acquisitions, adding to its 10-site network. If this target is achieved, it would sit alongside AM100-listed retailers like Eastern Western Motor Group in 50th place.

By taking advantage of the changes to block exemption, Desira hopes to maximise sales potential and customer service for aftersales by combining franchises under the same roof. It also plans to boost its parts and distribution operation.

“Each site has a core stock in place and can order parts from the central warehouse via a computer link for delivery throughout the day. This has enabled service operations to quickly get the customer's vehicle back on the road while reducing the overall stock holding,” adds Pochin.

He says the group will be working with its existing franchise partners over the next few months to maximise sales opportunities within current territories. “This does not rule out the possibility of the group taking on new franchises but these would have to complement our existing portfolio and give us an opportunity to sell more vehicles.”

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