MEMPHIS — Point S Tire & Auto Service is opening a regional headquarters and warehouse in Memphis that will increase its storage capacity fivefold and service a growing network of Point S dealers in the region.
The facility, which is expected to be completed and ready in the fourth quarter of 2022, will give the marketing group additional capacity to store larger rim-diameter passenger and light truck tires as well as truck/bus, off-road and agricultural tires.
Storing those tires was limited under the previous arrangement of three separate buildings that the Portland, Ore.-based group acquired in September 2019. The current capacity is around 100,000 square feet.
More than 20 Point S dealers use the Memphis facility as their primary source of supply, according to Point S. The states serviced include Arkansas, Kentucky, Louisiana, Mississippi, Missouri and Tennessee.
"Based on the growth of members in the region, we needed to make significant capital investments in our warehouse infrastructure," Walter Lybeck, CEO, Point S USA & Tire Factory Distribution said, noting the current warehouse structure does not support the increased volume and stocking needs of the business.
"We are fortunate to have such strong vendor partnerships that allow us to keep a great selection of products in stock for all our customers," Lybeck said.
Point S originally laid the groundwork for the Memphis market in late 2017 with a distribution deal it signed with Nussbaum Distributing Inc., which Point S at the time said would be a catalyst to adding stores to its network.
"Our newest members in this region have put their trust in us for their future, and we want to show our commitment back to them with this significant investment in infrastructure, and additional inventory, just like the other mature markets we operate in," Lybeck said. "The bottom line is, we exist to support them."
Point S has more than 250 points of sale in 26 states.
In order to support the new warehouse, Point S said it will add staff at the facility.
"The Midsouth is our fastest growing market and has proven to us that the value of our group translates across the United States," Point S USA Chief Operating Officer Clint Young said.
"While our members are our best recruiters and references, the investment we're making in inventory and distribution showcases our excitement and commitment to grow in the Midsouth market."
During its 2022 Dealer Conference and Trade Show in Puerto Rico, held in January, Point S told members it had doubled its size based on revenue over the last five years, buoyed by a 24% increase in sales in 2021.
Lybeck said the group exists to make its members successful.
"And that starts with having tires and program offerings their customers expect. It's that commitment that keeps us the number one brand for independent tire store owners," Lybeck said.