Urban Science: U.S. Auto Retail Network Achieves Stability For Seventh Consecutive Period

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Aug 11, 2016, 09:30 ET

DETROIT, Aug. 11, 2016 /PRNewswire/ --

Number of U.S. dealerships and franchises remains stable
States with largest increase in dealership counts: New York, Florida, Texas and New Jersey
Ability of average dealership throughput to exceed 2015 in question based on forecasts

Urban Science released statistics and insights today from its 2016 mid-year Automotive Franchise Activity Report (FAR) that indicates continued stability in the number of automotive dealerships in the U.S. since the end of 2015.

As of July 1, there were 18,124 dealerships (rooftops), a 0.2 percent increase from January 1, 2016's total of 18,087. The number of franchises (brands a dealership sells) also experienced a period of stability, slightly increasing from 31,776 on January 1, 2016, to 31,797 as of July 1, 2016.

"Over the last six years, the dealership network has set a new normal pattern of stability," said Mitchell Phillips, Global Data Director at Urban Science. "The data shows that 98 percent of local markets had virtually no net change (+/- 1 dealership), which is the largest period on record. That said, the most significant (net) dealership increases occurred in: New York, 10 dealerships; Florida, six dealerships, Texas, six dealerships and New Jersey, four dealerships. An interesting observation is California, which is typically on the most active list, is 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. "So, with a stable dealer count, the throughput record is controlled by the sales volume. With the current range of forecasts between 17.3-17.7 million, the possibility of a new throughput record is questionable."

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 a yearly analysis every February for the previous year in its annual 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.