VANCOUVER, British Columbia — OK Tire Stores Inc. is committing $75 million (C$100 million) over the next five years to expand its distribution center capabilities across Canada to support its drive to grow market share.
The expansion project will add more than 500,000 square feet to OK Tire's network of 11 regional distribution centers and includes plans to build a warehouse in central Canada, where construction in set to begin soon.
"Thanks to our dealers, we are experiencing phenomenal and consistent growth in our network on both the commercial and retail side," OK Tire President and CEO Jim Caldwell said.
"We are changing our business model to provide our dealers with everything they require to serve our customers' automotive needs better. Today's announcement marks the beginning of a new OK Tire as Canada's premier tire and auto service company."
Mr. Caldwell also remarked that the firm will consider building its network through "acquisitions that complement our existing network" as part of the strategy to add value and profitability.
The investment plan is most significant expansion in the company's 66-year history, OK Tire said, and the first major initiative of the franchisor's five-year growth plan.
There are nearly 325 independently owned and operated OK Tire locations throughout Canada.
"Our objective is to future-proof our business, which is why we are installing state-of-the-art distribution systems at our new facilities," Chief Operating Officer Michael Rutherford said.
"We will be able to carry more products and service our retail locations with an expanded line of tires and automotive products."