Kauffman Tire Inc. is set to begin construction soon on five retail tire stores, including three in the Atlanta area, where the firm already has 34 outlets.
The new stores will boost Kauffman's network to 45 retail outlets in four states.
The firm, which generates most of its sales from wholesaling, also recently opened a warehouse in Tallahassee, Fla., and is in the process of opening a 75,000-sq.-ft. warehouse in Dallas that will replace a smaller facility there, according to CEO John Kauffman.
Kauffman Tire, which also operates four combination retail and commercial outlets and one commercial-only shop, projects 2005 sales of $187 million, up from $175 million in 2004. Retail accounts for 39 percent of Kauffman Tire's sales. Of its retail sales, tires account for 45 percent and automotive service 55 percent. Kauffman Tire's retail sales in 2004 were $57.5 million and are projected to hit $64.5 million this year.
Three of the new stores are in Atlanta, with the other new stores to open in Dallas and Tampa, Fla. Mr. Kauffman said the properties are secured and construction is expected to start around the first of the year. He said the stores should begin opening around May and later. Each of the outlets will follow Kauffman Tire's standard store design with eight service bays.
The new Atlanta stores will give Kauffman Tire about 37 shops in the metro area, but the market isn't nearly tapped out.
``We still have some growth there,'' Mr. Kauffman said. ``We can't keep up with this place.''
The store in Dallas will be Kauffman Tire's fourth there. Kauffman Tire sells Continental, Cooper, Cordovan, Dunlop, General, Goodyear, Kumho, Mastercraft, Toyo and Telstar brands. Its retail stores cover markets in Georgia, Ohio, Texas and Florida.