Following a strategic review of its business in mainland Europe, online car seller Cazoo is foreclosing its operations in the European Union in order to focus exclusively on the U.K. market.
The strategic review was aimed at “further preserving cash and positioning the Company to achieve profitability without the need for further external capital,” according to a Thursday (Sept. 8) press release announcing the shift.
The company used the opportunity to talk up its U.K. successes, which include over 100% year-on-year growth in retail sales in July.
As PYMNTS reported last month, Cazoo’s investors have responded favorably to the company’s efforts to cut costs and double down on achieving profitability.
Read on: Cazoo ‘Laser-Focused on Profitability’ as Shares Surge Nearly 200% Post Upbeat Q2 Results
Prior to today’s announcement, Cazoo had launched in three EU countries. Last year, the car marketplace went live in France and Germany. The platform became available in Spain earlier this year and was introduced in Italy as recently as June.
Related: Online Car Retailer Cazoo Rolls Into Italy
The company said it intends to commence an “orderly wind down” of its operations in Germany and Spain and is in consultation with employee representatives in France and Italy.
As a result of its withdrawal from the EU Cazoo expects to achieve net cash savings of over 100 million pounds ($115 million) by the end of 2023, per the press release.
“Given our target of reaching profitability by the end of next year, we have taken the tough decision to focus solely on the huge UK used car market, worth over £100bn+ annually,” Cazoo founder and CEO Alex Chesterman OBE said in the release. “I would like to thank all our colleagues in the EU who are impacted by this decision, and we will of course look to support them in every way possible.”
He added, “We have built a market leading platform, team, brand and infrastructure in the UK, where we have now sold over 90,000 retail units since launch, despite the challenging macroeconomic backdrop.”
The decision to pull out of the EU “ensures that our balance sheet remains strong and that we have a plan which we believe no longer requires any further external funding,” he said.
For all PYMNTS EMEA coverage, subscribe to the daily EMEA Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More