Point S posts strongest year ever in sales profit, growth, store growth

PORTLAND, Ore. — Pandemic? What pandemic?

Point S Tire & Automotive Service USA said recently it completed its strongest year in the cooperative's 38-year history, in terms of profits, sales and store growth, both in numbers of stores and number of new states, despite the nationwide difficulties caused by the COVID-19 pandemic.

Point S CEO Walter Lybeck told members during the franchise group's virtual two-day dealer meeting that despite the pandemic "and all of its related challenges and economic uncertainty," the number of Point S units sold increased 19% in 2020, while total sales were up 22%.

There was a time, he told dealers via video, company officials feared sales would fall 15% to 20% for the year, and the group experienced weeks early in the pandemic when sales declined 40% from the previous year.

In addition, Point S added 27 points of sale, its best year of growth ever, and now spans coast to coast with 245 Point S location across the U.S.

The new store count includes Gills Point S Tire & Automotive Service's acquisition of 10 Vianor-branded retail stores in New England from Finnish tire maker Nokian Tyres P.L.C.

Eric Gill, owner of the West Coast-based, family-owned dealership, now operates 30 stores under the Point S banner.

Point S added franchisees in five more states to its portfolio during 2020, focusing particularly around its wholesale operation in Memphis.

"That's a reflection of Point S being a beacon for the independent tire store owner," Clint Young, chief operating officer of Point S USA, said.

Since joining the international Point S group in 2015, Mr. Young said, the U.S. operations has added 95 store members into the group.

Point S management shared video updates on each department's success in 2020 via its online platform.

"Communication and transparency are fundamental to our board and executive team," Mr. Lybeck said. "Even though we couldn't get together in person, it was imperative that we created a platform to inform and exchange with our owners."

During the virtual event, Point S owners accessed financials, voted for board of director candidates and attended a virtual vendor show that highlighted the group's preferred tire partners: Nokian, Toyo, Hankook, Falken, Goodyear, Nexen and Kumho.

The executive team credits those tire makers for a developing a strong promotional schedule that helped to boost sales.

"We had a robust response to the pandemic in how we communicated to our customers," Point S marketing director Devin Barr said. "We highlighted the essential work our Point S stores were doing in each community and empathized that we were safe, open and ready to serve."

Mr. Young said the owners take pride in being part of the co-op.

"They are a community of independent store owners," he said, "with leaders they trust and they work together with to create a world-class tire retail experience."

Mr. Lybeck said the independent strengths of the group distinguishes Point S.

"It goes beyond being represented coast to coast, but our vision in building the largest and strongest network of independent tire stores in North America," he said. "We are all working together as Point S nation."

Mr. Lybeck cited two headwinds that may cause difficulties in 2021: Poor supply rates, with the supply chain "in peril"; and new tariffs and duties that he said the group must monitor closely.

"We have to have flexibility between product lines, maintaining our margin for owners," Mr. Lybeck said. "While doing that, we have to push forward on strategic initiatives to continue pace of our co-op revolution."