Chains Buy Fewer Stores, Pay More Featured
29 November 2017
The number of dealerships that sold in the U.S. through the first nine months of the year has declined to 228 from 278 in the same period in 2016, according to Haig Partners.Despite the decline in rooftops purchased by the public companies during this period, they ended up spending significantly more money. For the year to date ended Sept. 30, the publicly traded retailers had spent $935 million on auto dealerships in the U.S., an increase from the $578 million spent in the same period in 2016. Lithia was the most active of the publicly traded companies and continues to target underperforming large platforms in different parts of the U.S. Continuing the trend from 2016, demand for dealerships shifted from luxury brands to domestic brands that are heavier in trucks and SUVs. Luxury dealerships accounted for 14 percent of acquisitions through the third quarter, down from 17 percent through the third quarter of 2016, and purchases of domestic stores increased to 50 percent through the third quarter from 46 percent through the third quarter of 2016.