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Car supermarket wants to win share of franchised dealer business

Car supermarket chain Motorpoint is expanding and plans to chew further into the franchised dealer's traditional heartland.

It has officially launched its sixth dealership in Chingford, its first within the M25, and will open a seventh beside the A38 in Birmingham this July.

An eighth location will open by the end of the year at an undisclosed location - north-east and southern England and Scotland are all target areas for the group, whose non-executive chairman is former Sytner managing director Mark Morris.

Morris told AM that Motorpoint currently sells 25-28,000 cars annually and generates revenues of £300m, but plans are in place to double this through expansion.

Its focus is on new, nearly new and used cars up to three years and 40,000 miles.

Click and collect

With focus shared between its physical sites and its online presence, Motorpoint allows consumers to reserve a car through its website and collect it from any of its dealerships.

Managing director David Shelton, who founded the business in 1998 to give motorists a lower priced alternative to carmaker's franchised dealerships during the 'Rip-off Britain' campaign by the Consumers Association, said he may consider adding satellite sites around the M25 which could support its click and collect operation.

"This business can adapt to sell high or low numbers of new and used cars to soak up excess manufacturer production in the marketplace," added Shelton.

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