Radical Retail – Performance in the Retail Model
For me, this does not mean dealers can afford to sit back. Quite the opposite: where new distribution models are losing momentum, manufacturers are intensifying their efforts to optimize the existing model. The strategic question becomes: how can the core effects and efficiencies of the agency model be transferred into a classic dealer network — without changing the formal structure?
A central theme is the rigorous analysis and optimization of structural costs in retail. Manufacturers know that in a volatile market environment, every avoidable cost burden becomes a risk — for both sides. This is why we are seeing greater manufacturer involvement in questions of margins, internal organization, and operational workflows within dealerships. The trend is clearly moving toward leaner structures, more efficient teams, and clearly defined role profiles. Those who want to succeed in a dealer network today must not only sell — they must also operate with excellence.
In parallel, one topic keeps coming to the fore: the question of inventory responsibility. Who will bear the economic risk for demo and stock vehicles in the future is currently being renegotiated across several manufacturer organizations. It is conceivable that risk distribution will shift — particularly because manufacturers have recognized that they need to support their dealers more actively in economically turbulent times in order to stabilize network performance. This represents a paradigm shift: less formal control through an agency model, but more operational intervention in the existing system.
At the same time, another lever is emerging — one that has frequently been cited as an argument for direct sales or the agency model: data. Integrating CRM processes across the entire distribution chain is entirely possible within the classic model. No agency contract is required to harmonize data flows, increase customer transparency, and unify the customer journey. In fact, many manufacturers are only now beginning to systematically unlock these potentials within the dealer model.
Another area where I see clear change is pricing. While manufacturers in the classic model cannot legally mandate end prices, the gap between list price and transaction price can still be significantly reduced. Manufacturers are increasingly working to align pricing closer to actual market prices — thereby creating greater transparency. Customers gain better market orientation, dealers face less pressure to resort to tactical discounting, and manufacturers gain more reliable control over sales volumes.
To me, "Radical Retail" describes exactly this development: not a revolution in legal contracts, but a fundamental efficiency reform within the existing system. Manufacturers are not retreating from strategic ambition — they are simply changing their tools. Rather than a radical system change, the industry is increasingly targeting a radical optimization of the existing model.
And that is precisely why it is more important than ever for dealers not to fall into a false sense of security. The coming years will not get easier — but they offer enormous opportunities for those who are willing to reposition themselves, evolve their organizations, and actively shape their own role in the market.
Radical Retail does not mean regression. It means realignment — and at full speed.
