Retail

Look for a Dozen Point S Stores Near Memphis by the End of 2018

Joy Kopcha
Posted on December 21, 2017

The same day Tire Factory Inc. took possession of a warehouse in Memphis, Tenn. — its first in the eastern half of the U.S. — CEO Walter Lybeck says the tire cooperative already had “20 store leads” it was actively pursuing. “And that number is growing quickly.

“In the short term, I’d be very happy if we had 12 or 14 (new stores) by the end of next year that are being serviced from that warehouse.” Three years from now, Lybeck says it could be 40 stores.

The key to the growth of the Point S retail brand in the east will be the partnership between Tire Factory and Nussbaum Distributing Inc., a tire distribution company created in 1986 in Memphis that’s owned by Mike Nussbaum. He’s admittedly a big fan of the Point S cooperative structure, and was a founder of the National Tire Corp. cooperative which evolved into Del-Nat Tire Inc. He was also a member of the Del-Nat board.

Nussbaum Distributing sells tires to retail tire dealers in four states — Tennessee, Mississippi, Arkansas Kentucky — plus parts of southern Missouri on smaller scale.

2 More Things to Know

Inventory: The new Point S dealers will have access to the inventory of both businesses, and they’ll order all products through Tire Factory/Point S. “They’ll be able to buy from me like it’s a regular 120,000-square-foot warehouse.” (That’s the combined footprint of the two warehouses.)

Nussbaum’s outlook: With more than 30 years in the Memphis market, Nussbaum expects Point S to do “exceptionally well. I think the independent tire dealer is very alive and doing well in the Memphis market, and I think there’s a lot of potential for them.”

As Tire Factory recruits new dealers to join its Point S network, those dealers will order tires from Lybeck, but they’ll be delivered by Nussbaum — in trucks he owns, driven by employees he pays, and perhaps most importantly, along distribution routes he already has in place.

“It’s an opportunity to really help the independent tire dealer survive the consolidation that’s going on in the industry,” Nussbaum says. “It should be a benefit to our business. It should help our business grow. I think Point S has an unbelievably aggressive growth agenda, and by partnering with us they can accomplish what they want to do with one-third the normal overhead if they just came in and tried to open up and duplicate all the things my company is already doing.

“By partnering with us, I think it will allow Point S to expand their footprint more rapidly.”

Lybeck says the Point S warehouse, which is located at 1549 2 Place in Memphis, is blocks away from Nussbaum Distributing. (The cooperative has leased the space for now, and is under contract to purchase it.) He’s already placing orders to fill it with tires, and says the company is in the process of recruiting sales employees, as well as warehouse workers. In the short term Tire Factory will hire three or four people. Once the company has around 50 stores in the region it expects to employ about a dozen workers in Memphis.

The Point S warehouse should be fully operational by the end of March, Lybeck says. “Perhaps sooner.”

Nussbaum says he sees opportunity in the two companies joining forces.

“I think it’s a very complementary offering in that they tend to focus on major brands, and we tend to focus on entry level, so we have complementary inventories. The customer base is different. The offerings are different. There’s a lot of synergies out there.

“We overlap to some degree, but I think we pretty much go after two different kinds of tire dealers. I have several hundred tire dealers that buy from us. They’re not looking for as many customers as I’ve got. They’re looking for the big customers.”

Nussbaum’s territory spans 150 miles from Memphis, and offers twice-a-day deliveries in the metro area, and almost-daily deliveries within that 150-mile radius.

“We’d love to deliver everything within that 150 miles every day, but we have some territories where we don’t have the volume to run every day,” he says. “One of the big reasons I’m doing this is, if Point S can go out and find a fairly large dealer in one of my routes where I’m delivering three times a week, that would probably increase the volume to where I could run it five times a week.”

And he’s made that commitment to Point S, too. If they help him increase the volume in “the few areas” with less-than-daily deliveries, he promises his trucks will be on the road five days a week.

Lybeck says, “It’s our collective vision that’s allowed this to work.”

Tire Factory is working to expand the Point S footprint in the U.S., and says the addition of the Memphis warehouse provides the capacity for another 50 stores.
Tire Factory is working to expand the Point S footprint in the U.S., and says the addition of the Memphis warehouse provides the capacity for another 50 stores.
The expansion to Memphis is a critical step in the long-term goal of expanding the Point S brand nationally. (Tire Factory joined Point S in 2015 and members have been rebranding their stores under the blue and green Point S banner ever since.) Historically, Tire Factory dealers have been focused in the Pacific Northwest and the western half of the U.S.

Lybeck says the expansion continues to establish the cooperative for the long term.

“If we stay in our 15-state region and continue to operate in our current capacity, we will lose leverage and buying power over time.”

Plus, dealers on the fringe of the group’s territory won’t have as many opportunities to connect with their fellow dealers.

“We have people on the edges that are not fully serviced by our warranty and the connection to the people. In Portland dealers are surrounded, so they get the nice benefit of the neighboring states and the people. The farther you get from that central hub the more difficult it becomes to stay connected.

“We need to continue to expand because we really want this nationwide network of independents where we’re all supportive of one another. You add that to the Canadian connection, and hopefully soon a Mexican connection, and then we’ve got an entire network in North America of dealers trying to fight the same battle.”

Related Topics: expansion, Memphis, Mike Nussbaum, Nussbaum Distributing Inc., Point S, Tire Factory, Walter Lybeck

Joy Kopcha Senior Editor & Digital Projects Editor
Comments ( 0 )
More Stories
News Hankook Offers Rebate on 8 Tire Patterns

Hankook Tire America Corp. is offering consumers a $50 rebate on certain purchases of four passenger and light truck tires from May 21 to July 13, 2018.  

News Tiremetrix Provides Dealers Free Tire Recall, Tire Aging Lookup Service

During National Tire Safety Week (NTSW) software provider Tiremetrix LLC will provide tire dealers and auto service providers with a free web-based database to check for tire recalls and tire aging issues.  

News Bauer Built Awards Scholarships for 25th Consecutive Year

The founders of Bauer Built Inc. are gone but not forgotten. The G. F. “Sam” and Ethel V. Bauer/Bauer Built Inc. Scholarship Award sees to that.

News Monro Acquires Free Service Tire Co.

Monro Inc. has acquired 99-year-old Free Service Tire Co., adding an expected $47 million in annual sales to its balance sheet.

Johnson Controls manufactures absorbed glass mat (AGM) batteries under private label for a range of auto retailers, OE manufacturers, distributors and mass merchants throughout North America. Photos courtesy of Johnson Controls.
Article OEM Battery Trends: How the Latest Technologies Affect Battery Sales and Service

While the latest high-tech amenities are adding numerous safety, comfort and convenience benefits to a vehicle, they also are creating more battery-related issues for vehicle owners.

Yokohama will meet with tire dealers across the country during the 2018 ride and drive training program.
News Yokohama Takes Dealer Training on the Road

Yokohama Tire Corp. is once again taking its dealer training program on the road. The 2018 experiential Ride and Drive Dealer Training Program kicks off with a multi-city tour May 22 in Anaheim, Calif.

The new Monroe ads will run in a broad range of automotive service industry publications and reach thousands of additional industry professionals.
News Tenneco Ad Campaign Touts Advantages of Monroe Products

Tenneco Inc. has launched an extensive print and digital advertising campaign called “If It Doesn’t Say Monroe” which highlights the quality, performance and value benefits of the Monroe brand of ride control products.

Article Wholesale Changes: Did Goodyear and Bridgestone Shake Up the Industry?

The joining of Goodyear Tire & Rubber Co. and Bridgestone Americas Inc. in the form of TireHub LLC is a potentially momentous move with far-reaching consequences. It also might be much ado about nothing.

©gettyimages.com/chombosan
Article Servicing the Next Generation of Cars and Customers

A couple of years ago, one of the consumer magazines compared the cars of 1991 to the cars of 2016 and listed the top 15 automotive milestones over that 25-year period. Hybrid technology, stability control and GPS satellite navigation were the top three in order and amazingly enough, tire pressure monitoring systems (TPMS) was number nine. The list was a mix of mechanical and driver-related innovations that made cars better, safer, efficient and more convenient.

Hercules says the Terra Trac CH4 is designed to endure the high torque and heavy loads critical to commercial applications.
Product Hercules Adds CH4 to Terra Trac Line

The new Terra Trac CH4 from Hercules Tire & Rubber Co. is an all-season commercial highway tire for cargo vans and light trucks.

CEMB says the new HubMatch balancer dramatically simplifies the RFV balancing process.
Product CEMB Unveils ER75TD HubMatch RFV Wheel Balancer

CEMB USA/BL Systems Inc.'s new wheel balancer is designed to complete the balancing process on the car at more than 45% less investment cost than other radial force vectoring (RFV) wheel balancers.

A new ad campaign is highlighting the personalities of technicians like Francisco at Firestone Complete Auto Care stores.
News Bridgestone Focuses on Its Technicians in Ad Campaign

Bridgestone Retail Operations LLC (BSRO) is working to build customer trust by highlighting the expertise and passion of its technicians in a new advertising campaign.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!