HUNTERSVILLE, N.C. — Economic factors likely are driving a decline in passenger tire replacements, as well as a decrease in tire shop traffic, according to Torqata Data & Analytics, a wholly owned subsidiary of American Tire Distributors Inc. (ATD).
Recreational vehicle tire sales (off-road and all-terrain) are significantly down compared with last year, and the trend is accelerating.
Retailer profitability is also declining despite tire price increases over the past year. Tires purchased at higher prices in 2022 and put into inventory are now having to be sold at a lower retail price point due to recent easing of wholesale costs, according to Torqata, so that retailers are seeing a squeeze on margins for passenger and light truck tires.
Torqata connects with multiple point-of-sale systems in the retail space and pulls data from retailers, such as inventory, sell-out and pricing.
The company then tracks national and regional trends and recommends to retail clients the types of tires they should stock for their market, the optimum pricing for various SKUs and what manufacturer buying programs would work best for their businesses.
"We help tire and automotive retailers increase the profitability of their tire program," Torqata CEO Tim Eisenmann said, noting the company services about 15,000 tire shop locations, some of which are not ATD customers.