Datamonitor: UK Car Consumables and Accessories Sales Flat

Value growth in consumables and accessories fell from 2.4 percentage points in 2008, to nearly flat growth this year, according to research compiled by Datamonitor. The inference is that the value of distress purchases such as tyres and exhausts (in addition to big-ticket satnavs and stereos) is falling as consumers defer replacement and as total average mileage falls. The consumables and accessories (C&A) segment is said to account for the largest share of the European retail aftermarket in the UK (8.3 per cent).

The retail distribution landscape is reportedly changing with conventional C&A point of sales (petrol stations and small independent accessory shops) continuing to decline and being overtaken by hypermarkets and larger accessory chains. In contrast, Datamonitor reports that online sales weighed in as the second biggest growth sector among UK retailers at the end of 2008. However, the reports adds: “No distribution channel is unspoiled by the recession, as online sales’ ability to cut costs has done little to protect it against a weak exchange rate. With the sterling’s historic collapse against the euro and the dollar, up until the end of last year, UK consumers fatefully lost some of their online bargaining power.”

Meanwhile, Datamonitor’s pessimism was supported by reports from the leading OE and aftermarket part supplier Bosch. In an interview with Reuters, Bosch announced that it expects revenue in its core car parts business to decline by about a fifth this year in line with global production volumes. “Despite the cash for clunkers incentive in Germany and some other countries, our turnover with auto components will fall by closer to 20 per cent than 15 per cent,” Bernd Bohr, head of the company’s car parts division, told Reuters in an interview. Sales in this business fell 7 per cent to 26.5 billion euros ($36.6 billion) last year, and as a result Bosch expects to report its first annual consolidated group loss since World War Two.