This chart appears in Modern Tire Dealer's 2018 Facts Issue.

This chart appears in Modern Tire Dealer's 2018 Facts Issue.

Warehouse clubs sell a lot of tires. In 2017 they sold 18.3 million passenger tires, which accounted for 9% of the retail tire sales in the U.S.

They are the third largest retail distribution channel behind independent tire dealers (61.5%), and mass merchandisers (11.5%). They are actually tied with car dealerships at 9% of the market.

They probably won’t be next year. The recent announcement that Wal-Mart Stores Inc. was closing 63 Sam’s Club outlets will impact overall market share.

Here’s the breakdown. Based on the 2017 numbers, the 1,399 warehouse clubs sold close to 18.3 million passenger tires. That’s 13,100 tires per store per year.

Multiply 13,100 by 63 and you get 825,300 tires. Subtract that total from 18.3 million and you get 17.4 million tires. Finally, divide that by the 208.3 million replacement passenger tires sold in 2017 and you get 8.5% market share.

With car dealerships trending upward – they have doubled their market share in the last 10 years – it looks like warehouse clubs will drop to fourth by the end of 2018 (unless, of course, Walmart is not done reducing the number of Sam’s Club outlets, which stands at 597).

With some 825,000 tires up for grabs, who will pick up the slack?

For additional analysis of tire distribution channels in the U.S., check out the digital version of Modern Tire Dealer’s 2018 January Facts Issue.

Author

Bob Ulrich
Bob Ulrich

Editor, Retired

Editor Bob Ulrich has earned a reputation as an industry expert thanks to his insightful, in-depth articles and blogs on the tire industry. Before joining Modern Tire Dealer in 1985, Bob earned a B.A. in English literature from Ohio Northern University. Also, he graduated from the University of Akron School of Law with a J.D.

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Editor Bob Ulrich has earned a reputation as an industry expert thanks to his insightful, in-depth articles and blogs on the tire industry. Before joining Modern Tire Dealer in 1985, Bob earned a B.A. in English literature from Ohio Northern University. Also, he graduated from the University of Akron School of Law with a J.D.

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