ITDG, Point S parted ways in early '15

TEQUESTA, Fla. (June 3, 2015) — Point S Development's recently signed alliance with Tire Factory Group in the western U.S. is the French marketing group's second attempt to establish its brand in the U.S.

The first — signed in 2011 with Independent Tire Dealers Group L.L.C. (ITDG) — was dissolved earlier this year by mutual agreement of the two parties.

ITDG sought to end the three-year-old business alliance with Point S because the “anticipated synergies between the groups just didn't materialize,” Ed Long, executive vice president for ITDG, told Tire Business.

From the beginning, ITDG had singled out Point S's proprietary tire brand program as a key element, but it turned out that program was a bit too Euro-centric and didn't offer enough SKUs suitable for the North American market, he said.

At the same time, one of Point S's core business principles is to get the Point S name into the retail arena. Mr. Long said a large percentage of ITDG's members were decidedly cool to this idea, since they felt they already had strong brand recognition in their respective markets.

With the ITDG agreement annulled, Tire Factory has joined the Point S group and plans to rename the 200-plus Tire Factory locations in the coming 18 months.

Concurrently, Pneus Unimax Ltee. of Boucherville, Quebec, will be adopting the Point S name as well at its 100-plus Unipneu member locations, solidifying a relationship Unimax and Point S signed in 2012. http://www.tirebusiness.com/article/20120913/NEWS/309139985/pnus-unimax-point-s-to-cooperate-in-canada

Wholesale distributor Unimax said it expects to have as many as 115 Unipneu-branded stores converted to Point S initially and expand that network to 250 by year-end 2016. The bulk of the Unipneu stores are in Quebec and Ontario. The Point S initiative will allow Unimax to consider locations further west, it said.