Leeds West Groups continues to grow service footprint

GREENWOOD VILLAGE, Colo. — In one respect, don't expect things to change much for Leeds West Groups (LWG) after its recent change in leadership.

Growth in the tire and automotive service space remains central to the investment fund's strategy. Derek Wessels, who succeeded Judd Shader as CEO of LWG earlier this year, vows the company will continue to operate as effectively and efficiently as it has since it was founded nearly 14 years ago.

"My role hasn't changed a lot," Wessels told Tire Business. "We've always been dialed in and focused on our teams, the growth of the organization. That won't change."

In another respect, the company will take on a new feel as Wessels, with more than 20 years of automotive retail management experience — including a dozen years at Bridgestone Retail Operations where he held various management positions with Firestone Complete Auto Care — directs the daily operations of the dealership.

Shader has transitioned to a new role: Founder and executive chairman, a position that will allow him to work with the board of directors and help set the direction, strategy and goals of the group.

This story first appeared in the Feb. 6 print edition of Tire Business.

"Timing is everything, and this is the right time," Shader said. "Derek has complete control of the operations. Nothing has really changed. The board will set expectations and goals and direction, and our management team is going to execute on them."

The investment fund operates 123 franchised auto service and tire retail locations in 18 states. Of those locations, 84 are affiliated with Midas and 39 with Big O Tires. Six others are affiliated with SpeeDee Oil.

Colorado, the state where the group was founded, leads the way with 23 LWG locations, followed by Iowa (17), Kansas (12) and Oklahoma (11).

LWG ranks as the 11th largest independent tire dealership in the U.S., according to Tire Business data.

Shader always has been clear about one LWG goal: To keep growing, responsibly and smartly, acquiring dealerships — and as often as possible, the real estate the dealership sits on — as well as identifying and building shops in an effort to bolster LWG's existing footprint.

The target is roughly 12 stores a year.

The group expects to open four Big O greenfield stores in New Mexico this year, two in Albuquerque and one each in Santa Fe and Taos.

"We look at areas currently being undeserved (in New Mexico)," Wessels said, noting the new Albuquerque stores will complement another location there. "We'll continue to look at other areas in New Mexico, too."

LWG is also looking to expand in the Denver metro area. "We've enjoyed great success there," Shader said. "It makes sense to expand in markets we currently are in.

"We are also looking at new markets, new states," he said. "We'll look at big metro areas that deserve a Big O or Midas. We are open-minded. It's got to make sense, and if so, we'll be aggressive and go after it."

Wessels said LWG continues to explore acquisitions with dealers, particularly those operating a Big O or Midas franchise.

"There's going to be a lot of owners who want to sell," he said. "We're always talking to people, exploring our options."

In the meantime, Wessels said he is excited about working with the 1,000-plus LWG employees. He will spend much of his time visiting stores, engaging with his team and spreading the group's message.

"One thing that makes our organization unique is that everyone on our leadership team is approachable, intelligent, and we move quickly," Wessels said. "A lot of other companies get bogged down because of the involvement in decisions from a lot of different people.

"We are the decision-makers in the company. We move quickly, intelligently, with a focus on the future."

Work culture is a key ingredient to success. Wessels said he always can judge a successful store when he walks in and discovers everyone is working together for the same goals.

The work culture, he said, fuels LWG's growth.

"We can always judge a team's excitement by the questions they ask," he said. "If they ask questions about the team's future, where the company is going, they are dialed in, tuned in. That's what we have. Our team knows we make smart decisions, our growth is strategic, and they are excited to be part of it."

Some new employees view LWG as an opportunity, rather than a disruption, he said. The dealership offers its employees a chance to grow professionally, while providing benefits that their previous employer didn't or couldn't offer.

"Sometimes we're changing lives," Wessels said. "That's very exciting and important to me. We might take over a store, and there are six people employed there. When we take over, within three to nine months, we have nine, 12 people working there. That's creating opportunities."

Shader characterized the change in leadership as a national progression.

"The biggest thing is, I never was an operations guy," he said. "I had to be because I had to be. My skill set is strategic and financial and all things from a global perspective. Derek is amazing at building the brand, team, day to day."

Both say they will push each other to be the best they can be.

"We are two intelligent people who are not afraid to speak their mind, voice their opinion," Wessels said. "That's when great ideas are created, great things happen."