The Eagers Automotive Ltd (ASX: APE) share price could be on watch tomorrow, following the circulation of plans to start selling cars at shopping centres and airports. The car sales conglomerate, formerly known as AP Eagers, closed down 2.2% today at a price of $13.87.
Cars in a mall, get ready for it
Reportedly, the Eagers conglomerate that delivered 10% of new cars sold in Australia last year plans to open showrooms in shopping centres by the end of this year. Multiple stores are being removed and made way for the supermarket-sized display area expected at the Indooroopilly shopping centre.
On top of this, Eagers will also begin construction of a 90,000 square metre complex near the Brisbane airport that will be accompanied by a 2.5-kilometre test track. The mega facility will also have over two dozen showrooms and service centres. This development would be one of the biggest in the world.
The airport facility is anticipated to be operational in 2023, with preparations already underway to begin construction.
The rationale behind this new approach explained by COO, Keith Thornton, is to engage potential customers in new ways in a stress-free environment. Adding, “The great thing about a shopping centre showroom is our customers are already going there.”
A shift in shopping centre utilisation
Following the aftermath of COVID-19 on traditional bricks-and-mortar stores, as well as the continued digitisation of shopping in general, businesses are finding new ways to adapt. It is becoming a common theme that shopping centres are shifting towards a more experiential destination.
Many shoppers probably weren’t thinking of trying their next car as part of the new mall experience, but who’s complaining?
AP Eagers share price snippet
It has been a solid 12 months for Eagers shareholders, witnessing the share price rise 51.4% over the period. It hasn’t been without its nail-biting times though. Shares in the auto group fell to a 52-week low of $2.50 in March, before steadily climbing to today’s $13.87 price point.
The company’s market capitalisation is now $3.64 billion.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Bitcoin’s next step forward aims to address adoption hurdles – May 17, 2021 4:13pm
- Could Dogecoin and Bitcoin be getting an extra push? – May 12, 2021 6:12pm
- Hamish Douglass loads the bag as Magellan (ASX:MFG) funds top $110bn – May 7, 2021 2:26pm