Polestar to Expand Retail Presence and Focus on Used Car Sales

Introduction

Polestar, the Swedish electric vehicle (EV) brand, has announced plans to significantly expand its retail presence in the UK over the next 18 months. This expansion aims to prepare for the launch of two new models, as well as to focus on increasing sales of used cars to expand its customer base.

Expanding Retail Presence

Polestar currently operates nine ‘Spaces’ across the UK, all located in shopping centres. With the upcoming launch of the Polestar 3 and 4 SUVs alongside the existing 2 saloon, the brand’s lineup will triple, creating an opportunity for substantial sales growth.

Matt Galvin, Polestar’s new UK boss, stated, “Launching two new cars brings new volume and expands our reach into new segments. That brings a requirement for faster growth, which means we need to expand our retail footprint quite aggressively.”

Polestar plans to increase its retail outlets to a total of 17 within the next 18 months. These new sites will include a mix of the current store-based concept and ‘Spaces Urban’, which will utilize older dealership-type buildings that will be transformed to reflect the Polestar identity and culture.

Focus on Used Car Sales

According to Galvin, the retail expansion is not solely focused on new car sales but also on growing Polestar’s approved used car offering. He emphasized the importance of pre-owned cars, especially with the first pre-owned Polestar 2 vehicles returning from leasing companies.

Galvin stated, “One of my key objectives is protecting residual values, so we’re making sure the Spaces we open have the capability to properly market pre-owned cars. We’re working closely with leasing companies to ensure we can absorb the incoming volume and sell it the Polestar way.”

While there have been concerns about the residual values of used EVs and low demand for such cars, Galvin believes that used Polestars provide a positive opportunity for investors and customers. He sees them as a lower entry point into the brand, which can then lead to future purchases of their new products.

Galvin concluded, “We want to make sure as many people as possible drive our products and grow our car parc in the UK, and used cars are a great way to do that.”

Conclusion

Polestar’s expansion plans in the UK involve increasing its retail presence to accommodate the launch of new models and to focus on expanding its customer base through used car sales. With a total of 17 retail outlets expected within the next 18 months, Polestar aims to protect residual values and provide a lower entry point into its brand, ultimately driving growth in the UK market.