Point S officially opens Memphis D/C, training center

MEMPHIS, Tenn. — The dream that first came into focus in late 2017 has become a 121,000 sq.-ft. reality for Point S Tire & Automotive Service USA.

The marketing group officially has christened a new warehouse in Memphis, initiating a key piece of the organization's stated goal of "555" plan: 500 locations in 50 states within the next five years.

The shiny new distribution center — a $2 million-plus investment that also will serve as a training center— actually opened Dec. 6, 2022. But a group of about 50 members attended a recent open house, in which Point S executives were able to show off the fruits of the labor.

Since the beginning of the year, Point S has added 28 locations, marking its best year yet for expansion with eight months to go. Of the 28, 15 are full retail members, one is a commercial member, and the rest are part of the associated program that was unveiled last year.

Point S is nearing 300 locations nationwide.

For now, the warehouse will service 35 Point S locations across nine states in the Mid-South region: Alabama, Arkansas, Louisiana, Missouri, Mississippi, Oklahoma, South Carolina, Tennessee and Texas. Dealers in Louisiana, Oklahoma and Texas will be serviced be a common carrier.

"This is like a Christmas present for me and for all of you," Point S Director of Operations Mike Atwood told dealers during the grand opening event. "It may be April, but it's still Christmas."

The D/C currently houses a little more than 50,000 tires — with 18,000 more on order — as well as automotive parts, such as valve stems, TPMS sensors, patches, adhesives, weights, "anything you would need to mount a tire," according to Point S CEO Walter Lybeck.

It was back in December 2017 when Lybeck and his group began to lay the groundwork to push the Portland, Ore.-based company eastward, striking a deal with Nussbaum Distributing Inc. of Memphis to be its distribution partner for Point S member dealers.

Less than two years later (September 2019), Point S acquired the assets of Nussbaum Distributing. The deal gave Point S control over warehouses in the Memphis area exceeding 100,000 square feet.

However, tires were stored at three separate buildings; two were next to one another, the other several miles away.

"We had flickering lights, cobwebs ... It was tough to operate a business out of there, but we made it work," Atwood said. "That's not how we do things. We wanted to do something for our membership and our employees to be proud of. I'm super excited."

It was 18 months ago when Lybeck and Point S member David Priddy of David's Point S Tire in Haskell, Okla., began to scout possible warehouse locations.

Lybeck said they toured several but kept circling back to one building, formerly a warehouse for the now defunct Fry's Electronics Inc. The building, constructed in 1987, had been vacant for more than three years.

"There were weeds across the property, trees growing out of the pavement, garbage everywhere — pallets upon pallets of forgotten stuff that were everywhere across the entire building," Atwood said. "There was — no exaggeration — an eighth of an inch of dust on everything."

"And water in all the egresses," Chief Operation Officer Clint Young added.

"This thing was a rough bag of bones when we first saw it," Lybeck said. "It feels like home. It's high quality. It just needed some makeup and clean up, and we made it something we are proud of."

Once the warehouse opened in December, two of the three existing warehouses, all leased facilities, were closed. Inventory from the third warehouse was moved by March 15, paving the way for the warehouse's inauguration.

Medium truck and agriculture tires reside in the far end of the building with room remaining for more inventory. And should the need arise, additional space can be freed up outside the facility.

The facility also will be used by the Point S recruiting team to show and tell dealers about company. The group also said it likely will hold regional meetings there, too.

In addition, the facility showcases many amenities that are available to Point S dealers — such as new paint colors, signage and LED lighting — available for purchase for their stores.

"This a culmination of a lot of hard work from many, many individuals to finally give the members of the mid-South something to be proud of and something to call home," Atwood said.