Retail tire business heats up in June

CUYAHOGA FALLS, Ohio — Tire dealers saw a surge in business in June. They attribute the increase to a number of reasons, including federal stimulus funds and the easing of stay-at-home restrictions.

Concern remains, however, for a resurgence of COVID-19 cases and, along with that, the possibility of new stay-at-home restrictions.

At the same time, finding and retaining quality technicians continues to be a problem for the industry.

Throughout the coronavirus pandemic, Tire Business has kept in contact with a number of tire dealers in North America for periodic updates on how their businesses are adjusting.

Gordon Leffler, owner and operator of a Suburban Tire Auto Care Center in Glendale Heights, Ill., said business has been "splendid" in June and noted foot traffic in Illinois increased with the easing of stay-at-home restrictions in early June.

"Most folks were at home from mid-March until early June," Mr. Leffler said. "All of those minor vehicle issues, like oil changes, tire repairs and tire rotations, were effectively put on hold for 75 days."

He said this led to a high car count but a lower amount spent per customer.

Shane Robertson, president of Robertson Tire Co. with 14 locations throughout the greater Tulsa, Okla., metro area, said the company saw a big increase in business in June.

"It's actually been better than last June, which was one of our best in history," Mr. Robertson said.

"… We noticed the return of customers the day the stimulus checks started being deposited. Then things really picked up once the state 're-opened,'…" he said.

"We are now fully open, and things are great. Like most places, we have seen more positive COVID cases, but hospitals are still well under capacity, and deaths remain very low."

Barry Steinberg, CEO of Direct Tire & Auto Service in Watertown, Mass., said the car count at his stores throughout the greater Boston was up in June. He said the tires that always have sold well continue to do so.

"In the good-better-best, the 'better' are the go-to tires," he said. "People want value and will spend a little more for that."

In Oklahoma, Mr. Robertson said all brands of tires have been selling well.

"We have been surprised to see the higher tier tires selling pretty well during this time," he noted.

In Toronto, Frank Bongiovanni, president of Superior Tire & Auto, said business in June was better than expected. "For the first time in a few months, we are not below sales compared to the same month last year," he said.

At Superior, which operates 10 locations throughout Ontario, he said more customers are seeking out more affordable tires, and economy brands seem to be selling well.

When asked what the biggest hurdles the business was facing in June, Mr. Bongiovanni noted finding good workers, the uncertainties in the economy and the pandemic.

"Hopefully there will not be a second wave of COVID-19 as it could be very devastating to our business and economy," he said.

Chris Mitsos, vice president of Mountain View Tire & Service Inc., in Rancho Cucamonga, Calif., said business has improved. Mountain View Tire operates 31 locations throughout the greater Los Angeles metro area.

"(We're) at 90% of last year in revenue, but we are only at 88% of normal foot traffic," Mr. Mitsos said.

"Our biggest hurdle is dealing with a new outbreak of COVID-19 cases in our stores," he said. "We did not experience this the first time around."

While unknowns involving the pandemic and the economy continue to be an issue, finding quality workers continues to be a problem.

" The biggest hurdle was and remains finding people to work," Mr. Robertson of Robertson Tire, said. "People are not wanting to work due to the extra unemployment benefit, and we could easily hire 10 to 15 people."

Mr. Leffler also said finding quality technicians was an issue, especially with the increase in customers.

"I think the silver lining of the whole COVID-19 experience is how gracious our client base has been," Mr. Leffler said. "There has been less pressure to perform jobs quickly and less 'pricing' scrutiny.

"I have definitely noticed an overall paradigm shift in our massive retail customer base, our fleet operators, and even in our wholesale accounts. The kindness, love and tolerance expressed by folks has been refreshing. Maybe we needed a global pandemic to bring back some humility and gratitude to our lives."