Kwik-Fit is confident about its 2004 sales and profit results. Kwik-Fit has embraced the fleet industry in its efforts to maintain growth. The launch of an improved product range means the company’s management is confident of its profits for the coming year despite continuing price competition. In the long-term, Kwik-Fit must continue with innovative services to fight back the maturity of the sector.
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The Kwik-Fit Group, Europe’s leading independent aftermarket retailer, has undergone structural and strategic changes in the last few months and management seems optimistic about 2004 profits.
Following the acquisition of Kwik-Fit by CVC Capital Partners, the group announced plans to expand its core fast-fit brand and fleet operations through the launch of new services in a bid to improve profitability.
Implementing this strategic plan involves substantial investment, which is to be funded largely by a cost-cutting drive. As part of this process, the headquarters of the group has moved to a cheaper location, and around 200 service centres have been closed.
The maturity of the fleet sector has encouraged the company to launch added value products and services such as 1link Service and Hometune. The launch of the Hometune services has shown the company’s commitment to meet existing customer needs – in this case by providing a repair and servicing capability to fleet clients at home or work addresses.
The integration of Tyre Plus and FTM Tyre into the Kwik-Fit Fleet brand and the launch of a partnership with Lloyds TSB autolease have enhanced its position as a leading aftermarket service provider in the UK fleet sector. As a result, customers have access to an increased network of outlets and mobile repair vehicles.
Following the change of ownership, the structural changes in the Kwik-Fit Group, which includes the Fleet division, have made the company more efficient and its product more appealing, leading to increased customer demand for its services.
However, for the company to enjoy long-term success, Kwik-Fit must show that it has the capability, flexibility and commitment to meet its existing and future fleet customers’ requirements. It must also continue to provide innovative products to avoid falling victim to the maturity of the sector.
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