A typical retail tire store in North America operated by the 100 largest tire dealerships has 10 employees and seven service bays, and generates nearly $1.3 million in sales annually, with tires accounting for slightly more than half of sales, according to information gleaned from Tire Business surveys conducted for this year's tire retailing section.
More precisely, the average retail store reported sales of $1.27 million-down slightly from $1.37 million a year ago-with 52 percent coming from tires and related service, 41 percent from automotive service and 7 percent from other activities such as automotive parts. A year ago, the breakdown was 56/35 tires/automotive service with 9 percent other.
Among the dealerships surveyed, the concentration of tire sales to total sales ranged from 11 percent to 100 percent, with about 40 percent reporting tire sales at less than half of total revenues.
A handful of companies do no automotive service-Arizona's Discount Tire Co. the most prominent among them-and the reported range of service to total sales went from zero to 77 percent.
The average per-company size among the top 100 last year was 37 stores, with the average dealership sales hitting $78.6 million. The median number of stores was 20.
The typical dealership in the top 100, according to the survey data, carries seven brands-five major name brands, one private brand and one import brand. The number of employees per store is down one from a year ago; the averages ranged from 3.3 to 23 per store.
The profit margin on tires for the top dealerships was essentially unchanged at 31.7 percent (in a range from 20 to 50 percent); the profit margin for automotive service rose slightly to 65.7 percent (in a range from 35 to 78 percent).