K&M gains momentum, plans to expand again

LAS VEGAS — Coming off a successful year in 2022, with business up about 14%, wholesale distributor K&M Tire Inc. is working to keep the momentum with a pair of new distribution centers and upgrades to its online ordering system.

K&M President Cheryl Gossard attributed the firm's revenue growth both to higher overall prices as well as its ability to attract new customers.

Supply was tight, and when competitors didn't have a tire in stock, dealers turned to K&M, which often did, she said during an interview with Tire Business at K&M's annual Tire Dealer Conference and Trade Show, held Feb. 1-2 at the Paris Hotel in Las Vegas.

"It was a really good year for us," she said, adding that while 2023 is starting a bit slower, K&M has plenty of inventory to meet demand.

"I think in a lot of industries, things are just starting out slow, and it's just going to take a little bit longer into the year to see things start to flow a little bit more."

K&M starts planning for the year ahead well in advance. Management takes a week in the fall to set sales goals for the following year and look at potential acquisitions or new locations.

"We really try to pay close attention to our employees and if they are ready for more, or if we just had a crazy year and need to take a bit of time to regroup," Gossard said about K&M's strategy.

"We really try to make sure that we're doing what's right for the company and what's right for the employees."

K&M wants to keep growing — has to keep growing — and every year it does, she said, adding that in the last 10 years, K&M has had good growth and had double-digit sales revenue growth most of the those years.

"There's no plans on changing that," she said.

When considering new facilities, K&M, which has 34 locations, is open to possibilities.

"Of course, we never want to go too far from where we currently exist," Gossard said.

It's important that K&M can transfer between locations, and there's a lot of opportunity to increase market share with existing markets while also pushing toward new customers in new locations.

In mid-January, K&M opened a distribution center in Carlsbad, N.M., an area previously served by a location in Lubbock, Texas. Lubbock was a long drive and K&M had some existing customers in the Carlsbad region with opportunity to gain more.

"That's how we like to do it," Gossard said. "We don't like to start in an area with nothing. We push out a little bit and then once we get some customers, we add a location a little further out."

K&M also is building a warehouse in Aurora, Ohio, with plans of opening that facility at the end of the third quarter or beginning of the fourth quarter. The 120,000-sq.-ft. Aurora facility will replace the current 30,000-sq.ft. warehouse in Solon, Ohio, Gossard said.

Solon and Aurora, both in Northeast Ohio, are about eight miles apart.

That market has registered significant growth year-over-year, she said, so K&M is looking forward to the additional space.

K&M offers more than 50 brands of passenger tires and more than a dozen brands of agriculture, specialty and industrial tires.

With backlogged inventory now coming into the market, K&M members have the advantage of not needing to find space or quickly move stock as K&M can deliver next-day, Goassard said.

"Don't tie up all your money and all this inventory when you can get it from us so quickly." she said.

Looking ahead, K&M remains focused on continuous improvement.

Members can look forward to improvements in the wholesaler's online ordering site — K&M took customer feedback into consideration when updating the site, so they won't change what folks like, just add new features, she said.

"We're just continuously looking at what we're doing and finding ways to do it a bit better," she said.

The Las Vegas trade show, which urged attendees to be "All In," drew about 900 K&M dealers and their families. The event included a series of seminars, including talks on hiring and retention, electric vehicles and the economy, and a keynote from Derek Daly, a former Indy 500 and Formula 1 driver. It featured a trade show with games, prizes and giveaways, and was concluded with a karaoke contest.

The 2024 show will be held in Atlantic City.