Urban Science Franchise Activity Report indicates U.S. auto retail network stable while average sales per store forecasted to fall. LEARN MORE.
Urban Science released statistics and insights today from its 2017 mid-year Automotive Franchise Activity Report (FAR), indicating continued stability in the number of automotive dealerships in the United States.
As of July 1, 2017, there were 18,199 dealerships (rooftops), a 0.2 percent increase from the January 1, 2017 total of 18,170. The number of franchises, or brands a dealership sells, also experienced a period of stability, slightly increasing from 32,012 on January 1, 2017 to 32,046 as of July 1, 2017.
“Over the last several years, the dealership network has set a new normal pattern of stability,” said Mitch Phillips, Global Director of Data for Urban Science. “The data shows that 98 percent of local markets had virtually no net change (+/- 1 dealership). That said, the most significant (net) dealership increases occurred in Texas, nine dealerships; Florida, seven dealerships; Pennsylvania, six dealerships; Missouri, five dealerships; and Ohio, four dealerships. An interesting observation is California and New York, both typically on the most active list, are no longer included on the most active list, demonstrating a period of stability.”
“Sales throughput for dealers is defined as the number of sales divided by the dealer count,” said Phillips. “With a stable dealer count, the throughput record is controlled by the sales volume. With the current range of 2017 sales forecasts being less than 2016, throughput is forecasted to fall around 25 units to 940 units.”
About the Automotive Franchise Activity Report
Urban Science maintains a list of current new vehicle dealership and franchise information for all car and light truck brands in the United States. Compiled on a monthly basis, the census is the most reliable source of dealership statistics. The data comes from a variety of sources, including feeds from automotive manufacturers as well as phone and field verification. Urban Science has been collecting this information since 1990 and compiles an annual analysis for the previous year in its Automotive Franchise Activity Report.
About Urban Science
Founded in 1977, Urban Science is a global retail consulting firm that takes a scientific approach to help companies identify where they should allocate resources in order to increase their market share and profitability in the most effective and efficient manner. With headquarters in Detroit, Urban Science serves its global clientele from offices in the United States, Spain, UK, Germany, Italy, France, Australia, China, Mexico, Russia, Japan, India and Brazil. For more information on Urban Science, visit www.urbanscience.com.