Size of 'typical' top independent retailer growing — Tire Business research

AKRON — The "typical" larger-scale, multi-store independent retail tire dealership in North America operates 24 stores, generates about $2.8 million in revenue per outlet and carries 11 tire brands.

That's the picture gleaned from Tire Business' survey of the North American tire retailing sector this past year.

The dealership size of 24 stores is the median of the 101 dealerships profiled in this year's report. That's up from 21 a year ago.

The average size of a Top 100 dealership jumped by nine to 73, reflecting a series of acquisitions covering hundreds of outlets by companies near the top of the list.

• This story appeared in the Oct. 22 print edition of Tire Business.

In addition, Tire Business research reveals there are 35 more dealerships just outside the top 100 collectively operating more than 300 stores — seven with 10 stores, 10 with nine and 18 with eight.

The average sales revenue of a store — based on data from 48 companies that supplied sales information — was nearly $2.8 million, down from the $3.5 million reported a year ago, while the median store sales of the companies that reported revenue was $1.35 million, down roughly 10 percent from a year ago.

The typical large dealership outlet derived 55 percent of its sales from tires and related services, 44 percent from automotive service and 1 percent from other, miscellaneous sources, according to information derived from the 37 dealerships that shared that information with Tire Business.

The share of a dealership's sales represented by automotive service ranges from zero (Discount Tire) to 80-plus percent for GB Auto Service.

The typical Top 100 tire dealership offers 11 brands — six to seven flag, two to three import and one to two private — with Goodyear, Michelin and BFGoodrich the dominant brands, carried by 71, 70 and 69 dealerships, respectively, followed by Bridgestone (65); Continental (60); Firestone (59); Hankook (53); Uniroyal (52); Dunlop and General (50 each); Cooper (45); Pirelli (44); Yokohama (42); Kelly (41); Kumho (34); Toyo (33); and Falken (30).

All but two of the 101 dealerships profiled this year are privately owned, including Max Auto Supply Inc. and Ben Tire Distributors Ltd., which are employee-owned.

The two firms publicly owned or controlled by outside financial holdings — TBC Corp. and Monro Inc. — are among the three largest dealerships.

In addition, two dealerships — Mavis Tire Supply and Raben Tire Co. — have outside investors as minority shareholders. GB Auto Service, a new name this year, is controlled fully by Greenbriar Equity Group.

In Canada, Goodyear owns minority stakes in Coast Tire & Auto Service Ltd. and Fountain Tire Corp.

Fifteen of the ranked dealerships are Goodyear Tire & Service affiliated, comprising 548 outlets, while eight are part of Michelin's Alliance program, with 186 stores, and three with Tire Alliance Groupe (TAG), representing 93 outlets.

In addition, there are two independent Car-X Tire & Auto franchises, with 46 outlets combined; eight Big O franchises with 178 stores among them; and three affiliated with TCi's T3 program, comprising 60 outlets. Car-X franchisor Monro Inc. also operates 53 Car-X outlets as corporate-held franchises.

Two dealerships — Express Tire Auto Service Center, San Diego; and Stratham Tire Inc., Brentwood, N.H. — have female top executives, Greta Waggoner and Denise Littlefield, respectively. Plus, Charlayne Ratté is co-owner of Pneus Ratté, a Point S affiliated dealership in Quebec City, Quebec.

Looking at the market geographically, Bridgestone Americas' retail network — Firestone Complete Car Care, Tires Plus and Wheel Works — is the most prevalent, with a presence in all 10 of the regional areas profiled by Tire Business, including being the largest in five regions: Southeast, Upper Midwest, Southeast Central, Southwest Central and Northwest Central.

TBC Retail shows up in six of the 10 regions with its Merchant's Tire, National Tire & Battery and Tire Kingdom brands, and also is No. 1 in the Mountain region via its Big O Tires franchise network.

Discount Tire/America's Tire, No. 1 nationally with 1,000 outlets, has a presence in seven of the 10 regions, however it is not No. 1 in any one of them.

Monro is present in six regions, including being No. 1 in New England and the South Atlantic.

American Tire Distributors Inc.'s Tires Pros network doesn't have a single dealer among the Top 100, but collectively Tire Pros dealers are among the largest dealer groups in eight of the 10 regions.