Auto Trader's supply-chain issues has in some ways boosted its retailer's sales rate, Wealth Club's Charlie Huggins writes in a note. The digital automotive marketplace has experienced supply-chain challenges in both the used and new car market in FY 2023, which drove a reduction in the group's average number of listed cars by 14%, the analyst says. Still, it didn't hurt income from retailers, as average revenue per retailer rose 10%, while the overall number of website visits are higher than the prepandemic figure. "In some ways, the constrained new and indeed used car market supply has played into the group's hands, with cars selling faster than at any time over recent years," Huggins says. (christian.moess@wsj.com)

Source: Wall Street Journal June 01, 2023 12:22 UTC