Point S USA Invests in New Memphis Site
Later this year Point S tire dealers near Memphis, Tenn., will have access to a new, larger warehouse which will also serve as the home base for a new regional headquarters for Point S USA.
The new space will provide five times the amount of storage capacity as the group's existing Memphis warehouses. Point S first entered Memphis and the Midwest through a partnership with another distributor at the end of 2017. Point S eventually bought that distribution company.
Point S USA says it now has more than 20 dealers who utilize the Memphis distribution hub "as their primary supply point."
With a larger warehouse, the cooperative of tire dealers will be able to make a "significant investment" in its inventory of truck, off-the-road, farm and passenger and light truck tires.
Point S USA says those larger tire sizes are a "strong component" of its overall business, and the capacity to hold them was limited in the previous locations. (Point S has been working from two nearby warehouses.)
The new warehouse, which will include space for member training and regional gatherings, is expected to be completed and ready for inventory during the fourth quarter of 2022.
“Based on the growth of members in the region, we needed to make significant capital investments in our warehouse infrastructure,” says Walter Lybeck, CEO of Point S USA & Tire Factory Distribution.
“The existing warehouses in Memphis simply cannot handle the increased volume and stocking needs of our business. We are fortunate to have such strong vendor partnerships that allow us to keep a great selection of products in stock for all our customers.
“Our newest members in this region have put their trust in us for their future and we want to show our commitment back to them with this significant investment in infrastructure, and additional inventory, just like the other mature markets we operate in. The bottom line is, we exist to support them."
To support the new warehouse, Point S will increase its onboarding and recruiting efforts.
“The Midsouth is our fastest growing market and has proven to us that the value of our group translates across the United States,” says Clint Young, chief operating officer of Point S USA. “While our members are our best recruiters and references, the investment we're making in inventory and distribution showcases our excitement and commitment to grow in the Mid-South market.”
Lybeck says, “It all boils down to delivering upon our promise to our membership — the reason we exist is to make them successful. And that starts with having tires and program offerings their customers expect. It’s that commitment that keeps us the number one brand for independent tire store owners."
There are more than 250 Point S locations in 26 states. Owners in 2021 continued a streak of annual sales growth, and in the last five years the cooperative has doubled its overall sales.