DIY drivers accelerate growth for motor spares supplier
An independent car parts supplier has grown its revenues by 50 per cent despite Covid-19 disruption, with support from Lloyds Bank.
With two sites in Stafford and Stoke, A-Z Motor Spares has traditionally focused on supplying aftermarket replacement car parts and accessories to retail and trade customers. However, when the pandemic hit and many of the firms’ customers were forced to close their doors, the business decided to focus on supplying parts direct to the public via its website.
Thanks to the change in its business model, A-Z Motor Spares saw its online revenues surge, soon making up more than half of overall turnover, as more people took to maintaining their own cars during lockdown. This also resulted in the creation of three new jobs to help process online orders.
With Lloyds Bank’s support, the business was able to upgrade its IT infrastructure and manage its working capital in order to cope with the sudden increase in online demand.
Mohammad Nadeem, managing director at A-Z Motor Spares, said: “We launched our website in late 2019 to support our ambition of supplying parts to both trade and retail customers across the country, as well as locally. But we never could have imagined it taking off in the way it has, as huge numbers of drivers got under the bonnet to begin maintaining their vehicles themselves during lockdown.
“The growth we’ve experienced in online sales has more than made up for the fall in demand from our trade customers. And we couldn’t have achieved this without the support of Lloyds Bank and the hard work of all our staff. Despite the need to adapt and adjust to the new working environment, our teams have risen to the challenge and we look forward to what 2021, and beyond, looks like for us as a business.”
Jonathan Pendlebury, relationship manager at Lloyds Bank, said: “Launching an e-commerce site to sell direct to the public has proved to be a great move for A-Z, giving it access to a whole new market when its core business was impacted by the pandemic. It is now a more resilient business with growth on its agenda and a bright future ahead.
“Lloyds Bank is working closely with business customers right across the UK to guide them through this challenging period and help them access the support that’s available.”
Lloyds Bank provided the business with a £225,000 funding package through the Coronavirus Business Interruption Loan Scheme.
