3 top tips for automotive retailers during COVID-19, from Mike Jones, Chairman of ASE Global
With the huge number of government initiatives coming out over recent weeks it has been virtually impossible for retailers to keep abreast of them all, whilst also furloughing huge numbers of their staff and deciding which bits of their business to try and keep open.
On the first Auto Trader webinar we had a huge number of queries, reflecting both this and the fact that the government guidelines are still in development and, in some cases, leave a number of questions unanswered.
I thought it might be useful to point out some of the areas where the system is not yet working as it was originally envisaged, along with the actions a retailer can take to mitigate their exposure:
Communicate – communication is always key and it is vital at the moment with people working remotely. It is also vital for business owners to communicate with their key stakeholders. Some of the government funding is being funneled through the banks and it is therefore vital that businesses speak to their relationship managers, not only setting out what they want, but also what they could potentially require in the future. Franchised retailers should also be speaking to their franchises to ensure they are aware of any emergency support packages
Plan for the worst – don’t expect the government to deliver everything it has promised, in the way and timescale envisaged. We have already seen in some instances local councils requiring companies to apply for rates rebates rather than be automatically be granted them as was initially announced. I would also, as a business owner, be planning for the government to take at least a month to make the furlough payments – potentially requiring a short term bridging overdraft extension
Do the right thing – we have seen from our experience overseas that businesses have tried to find ways around the lockdown do damage to their overall reputation at a time when the general mood is that we should all be pulling together. I have seen this with questions around how to get around the furlough arrangements and how to stay open and continue to trade during the lockdown. I personally think this is the wrong approach and will hit businesses in the long run
There were also a lot of specific questions around the furlough scheme and we will be publishing a detailed blog on that over the coming days as we see additional information come to light.
The overwhelming feeling is to produce a plan to get through the next 3 months, communicate and ask for clarification where required and most importantly stay safe.