Luke Gregory from Colchester Kawasaki tells us how they’re preparing for the future

As the largest Kawasaki dealer in the UK, Luke Gregory, Managing Director of Colchester Kawasaki tells us how they are continuing to operate during lockdown, supporting key workers, leading up to what should be their busiest time of year. We get an insight into how they are streamlining their processes to make sure they are in a good place logistically and rearing to go once able to reopen properly. As well as making adjustments in store to give both staff and customers the confidence to visit them safely.

Q: Luke, can you tell us a bit about Colchester Kawasaki and your role

A: We took over ownership of Colchester Kawasaki about 8 years ago, and we moved premises about 4 years ago into our new showroom around 4 times the size of our previous space. We’re Kawasaki’s largest dealer in the UK, and also sell Piaggio, Vespa, Moto Guzzi and Aprilia motorcycles. I’ve worked in the motorcycle industry since I was 16 and over the years have worked in every department within the business. This has given me an in-depth understanding of every facet of the company and how best to manage the team so that we all work together efficiently and productively.

Q: Before Lockdown were you getting ready for a busy period?

A: As a motorcycle dealer we experience a seasonal increase in the warmer months of the year and spring is traditionally the run up to our busiest season, with the new registration release at the start of March being our “launch” into the new biking season.

Q: At what point did you decide to close the showroom?

A: We knew there was going to be a big announcement on Monday 23rd, and suspected that the UK would follow in the footsteps of other European countries in announcing a lockdown. After the Prime Minister’s announcement on the Monday evening, I held a conference call with my management team at around 10pm and we issued an email first to staff, then to customers announcing that the showrooms would be closed to the public as of the following day. It’s a scary decision to have to make but it was out of our hands at that point, and we wanted to let the dust settle before we rushed any decisions.

Q: Have you been able to access any of the government support available?        

A: Yes, we’ve been fortunate enough to be able to take advantage of the Business Rates Holiday, however we haven’t qualified for the grant as our rateable value is over the threshold. We’ve managed our cashflow very carefully for many years, and we were in a strong position before everything kicked off, so at this stage we’ve avoided having to take any loan, despite our overheads still being very high due to the size of our premises (around 40,000ft2). We’ve also had to furlough a percentage of our usual workforce, and are in the process of applying for the government support through the new portal.

Q: How is the business operating at the moment?

A: Our sales team are working remotely and assisting customers on email, live chat, Whatsapp and over the phone. The government recently clarified that contactless vehicle deliveries are now allowed, and so that’s allowed us to process through our sales and get the bikes out for delivery. We were surprised to find that quite a percentage of our customer base are classed as key workers, and so we’re happy to be able to help them remain mobile and have a reliable mode of transport to get to and from work.

Q: For all automotive retailers this is a blow, but this is particularly difficult for dealers in the bike industry – what are the biggest considerations for bike retailers in your opinion?

A: I think one of the most difficult things in the motorcycle industry is that we’re just now coming into our peak season, and for many dealers the sales usually generated in the busy spring help them recover from the winter months where sales are slower. From a young age I was taught to “save for a rainy day”, a mentality I’ve always carried through to my business. If THIS is not “a rainy day” then I don’t know what is! Along with careful saving and cashflow management, we’ve also got a fantastic team here with us, including a dedicated Marketing department, which has helped drive consistent sales all year round, meaning we’re in a stronger position to cope with the closures.

Q: In preparation for when the government say you and other retailers can reopen, what are you doing to make sure your business is up to speed and ready to start retailing again?

A: Something we’re looking at closely is how the industry will change once restrictions are lifted. We’re already seeing a trend of customers moving towards completing a sale as a distance purchase, so we’re streamlining our processes to make sure we’re in a good place logistically and rearing to go once we’re able to reopen properly. We’ve already been dealing with distance purchases for several years, and so we’re up to scratch on the different paperwork and processes required for a distance sale. We’re routinely reviewing them to ensure everything is as simple and straightforward as possible, but we’re already fully compliant on that side of things.

Q: Once showrooms have reopened, it’s expected that some people will still be reluctant to visit retailers.  What are you/will you be doing to make sure people feel 100% confident that it’s safe to buy a bike from you?

A: We’re conscious that both customers and staff will be nervous once restrictions are lifted and shops are allowed to reopen. I think a key thing is being confident that you’ll be walking in to a safe environment, and that you’re dealing with a responsible retailer. We’re making adjustments in store to give both staff and customers the confidence to visit us safely. This includes hand sanitiser stations, protective screens installed, enhanced PPE available to staff, and signs put up asking customers to respect social distancing. We’re also considering imposing restrictions on our busiest days to limit the number of people allowed in the showroom at any one time, to ensure that social distancing measures can be respected.

Q: What sorts of things do you think retailers can be doing now whilst we’re in Lockdown? Are you doing anything specific?

A: This pandemic will change people’s mentalities, and owning a motorcycle is a fantastic alternative to using public transport. As an industry we need to make sure we’re actively promoting the benefits of using a motorcycle as a mode of transport. It’s so important to make sure that your sales teams are working remotely and actively dealing with enquiries. Hopefully within a few short weeks we can throw open our doors again, and we need the sales to be locked in and ready to go as soon as it’s safe to do so. The safety of our staff is our main priority and something we’re also concentrating is creating a safe, clean environment for them to work in once we’re back up and running at full capacity. We’re actively involved with our local motorcycle community, and are planning a ride out with all proceeds going to support the NHS once restrictions are lifted. So far we’ve got over 1,000 bikers expressing interest in joining – so watch this space!