Will consumers release pent-up tire demand?
"Some consumers have delayed tire replacements to the point that we will see some pent-up demand released in the coming months as consumers adjust to the incremental headwind created by the expiration of the payroll tax earlier in the year," reports John Healy and Nick Mitchell, analysts for Northcoast Research Holdings LLC based in Cleveland, Ohio.
In their monthly dealer survey for the Your Marketplace column in the latest edition of Modern Tire Dealer magazine, they say dealers noted that unit volumes fell 1.1% in June compared to June of 2012, which marks a slowdown from May when dealers said that year-over-year tire sales were essential flat.
"We believe that consumer demand for replacement tires was not quite as strong as it had been in April and May," they say.
Check out their complete report is in the August issue of Modern Tire Dealer online at "Tire pricing environment becomes more competitive at retail" and in our digital format.