Lithia to shut CarStores, issues redundancy notices

It will be closing nine CarStore sites and seven CarStore pods this quarter in order to focus on Evans Halshaw and Stratstone.

Four CarStore sites will be retained and refranchised, expanding its retail operations with three existing OEMs, while seven remaining CarStore pods will become Evans Halshaw Direct sites.

Lithia said customers will be contacted in due course, to explain how any closures may impact them.

The closures follow hard on the recent takeover of Pendragon's dealer and fleet business by Lithia, which also owns Jardine dealerships in the UK.

"Following the acquisition and ongoing merger, we have carried out an initial review across the group.

"As a result of which, we will be going into consultation with a number of our colleagues around potential redundancies.

"All colleagues have been notified today, to explain how they may be impacted," it said in a statement issued to Motor Trader

Neil Williamson, regional president of Lithia UK, said: "The bringing together of Pendragon and Jardine Motors Group under Lithia & Driveway has illustrated the synergies across these two great businesses. We are committed to growing in the most efficient way possible as we move through 2024."

The closure of the CarStores marks a reversal of the strategy by Trevor Finn who created the concept before the pandemic. Post pandemic, the used car market is smaller, caused by successive years of low new car sales.

Inchcape recently shut eight Bravoauto used car supermarkets in response to a smaller used car market with stock more difficult to find. And in August last year Peter Vardy shut two of its supermarket in Scotland, citing the smaller used car parc.

In mid-2023 used car Supermarket Motorpoint also put expansion on hold, citing stock shortages of nearly new cars.