Online used-vehicle retailer Shift Technologies Inc. mentioned Thursday it was shedding its bodily shops on the East Coast, which it obtained by means of its December merger with used-vehicle consignment firm CarLotz Inc.
Shift Technologies, headquartered in San Francisco, beforehand cited CarLotz’s established presence on the East Coast as a key purpose for endeavor the deal, which was introduced in August and closed Dec. 9.
The retailer mentioned its retailer leases, stock and associated belongings in Richmond, Va.; Charlottesville, Va.; and Tampa, Fla., will “be assumed by a local dealership group.” It didn’t disclose the identify of the group in a information launch asserting the exit from the area. Stores in Midlothian, Va.; Charlotte, N.C.; and Greensboro, N.C., had been closed Thursday.
“After thoughtful consideration, we determined it was in the best interest of the company to exit the East Coast CarLotz presence,” Shift Technologies CEO Jeff Clementz mentioned within the launch. “As we remain laser-focused on reaching profitability, we felt it was the right decision to focus on geographies where we have the most operating expertise, logistical and brand awareness leverage, and ability to scale.”
Remaining CarLotz shops in Pomona, Calif., and Downers Grove, Ill., are being transformed into omnichannel Shift Technologies places serving the higher Los Angeles and Chicago metropolitan areas, the corporate mentioned. Omnichannel refers to know-how and processes geared toward offering a seamless shopping for expertise for shoppers whether or not they store on-line, in-store or each.
Shift Technologies additionally mentioned that previously few months it has reenabled in-person gross sales at its three West Coast places, that are in Portland, Ore.; Oakland, Calif.; and Los Angeles.
Shares in Shift Technologies slipped 3.2 p.c to 27 cents on the market shut Thursday.
Shift Technologies will use the remaining CarLotz belongings to construct out its omnichannel presence, Clementz mentioned.
The retailer undertook a serious restructuring in 2022, which entailed chopping jobs and shutting seven of its 10 upkeep and buyer relations places — 4 in Texas, two in California and one in Washington — to raised place itself to grow to be worthwhile. The restructuring was “substantially complete” as of Sept. 30, Shift Technologies mentioned in a regulatory submitting.
Source: www.autonews.com