Pendragon PLC

Our Strategy

STRATEGY
Our strategy is to grow profitability in used, aftersales and new and we represent this by our four strategic pillars. These strategic pillars are: Choice, Value, Service and Convenience and are supported by the 'Our People' foundation.

Strategic-pillars


CHOICE
Our 'Choice' pillar is our strategy to ensure that our consumers can access the largest and best choice of vehicles and servicing in the UK. Visits to Stratstone.com and Evanshalshaw.com increased by 35.5% over the prior year, to 20.6 million visitors, offering the choice of over 21,000 vehicles to consumers online. Overall, we have nearly doubled the number of web visits in three years from around 10.9 million in 2012 to over 20.6 million in 2015, which is truly exceptional growth of the brands. This channel is becoming a key aspect of our business to ensure our consumers are fully aware of the choice we have available and the convenience of transacting with us.

We have been operating our 'Sell Your Car' initiative for a over a year. This enables the consumer to choose to sell their car direct to us at Evanshalshaw. com. We guarantee to pay more than 'webuyanycar.com'. This initiative is enabling us to provide a greater selection of choice and value to consumers and to turn stock more quickly, given that the vehicles we buy from these customers arrive directly at our vehicle preparation and retailing premises.

In February 2015, we launched 'Move Me Closer' which enables the consumer to reserve a vehicle direct from their electronic device and choose to have it physically delivered to their nearest store location. Through this service, consumers can research and view online over 21,000 vehicles then inspect the vehicle they reserved at a physical location convenient to them. We continue to be encouraged by the results of our Sell Your Car and Move Me Closer initiatives.

VALUE
Our 'Value' pillar ensures that, for every single purchase, our consumers enjoy the benefit of our every day low prices, achieved by our frequently researched local and national prices. We have been operating our value pricing methodology since 2008, enabling us to provide price transparency to our customers. Our used car sales are backed by our Price Guarantee.

SERVICE
Our 'Service' pillar is ensuring that our consumers can transact easily with our business, with outstanding customer service. We monitor our customer satisfaction scores closely and regard as a key measure of our success the proportion of customers who have given us a four or five star rating for vehicle sales and aftersales service. We are pleased to report that on this measure our performance has progressed from 83.4% at 31 December 2013 to 85.3% at 31 December 2014 to 85.5% at 31 December 2015. We continue to put the customer first in all we do.

CONVENIENCE
Our business has the largest motor retail footprint and scale in the UK. For both vehicle selection and purchasing, and for aftersales services, customers can visit our stores at locations convenient to them. We have commenced an investment programme to acquire and open stores in the key market areas in the UK where we do not yet have a significant presence. This investment will bring us even closer to existing and potential customers, by further enhancing the offering of Choice, Convenience of contact and Service and our unique used vehicle proposition.

We have added nine more Evans Halshaw sites towards our plan of 40 additional sites.

Our 'Sell Your Car' initiative is now available at 42 retail locations in the UK, bringing us closer to more consumers and providing an inflow of used cars for the business sourced directly from consumers.


OUR PEOPLE
Our people are key to the underlying success of our business. We are fortunate to have a committed and dedicated team member base who are helping us deliver our strategy and achieve our planned business growth. During 2016 we plan further investment in our people to enhance attraction to the business and mitigate attrition. This will be undertaken alongside our implementation of the National Living Wage. Adaptability, dedication and willingness to learn underlie our team members' valuable contribution to this growth. We wish to thank our team members, who continue to be part of the journey at Pendragon PLC, and who enjoy growing with our forward-looking organisation.