Tire Factory Inc. and Point S USA are making a big move to expand their network of tire dealers into the eastern half of the country. The company is partnering with Nussbaum Distributing Inc. in Memphis, Tenn., to distribute tires to four states. The cooperative says the distribution point in Tennessee gives it the capacity to add 50 stores to its network.
The partnership with Nussbaum Distributing gives Point S a fourth distribution center in the U.S. (The others are in Portland, Ore., Salt Lake City, Utah, and Denver, Colo.) The company says it will have access to more than 120,000 square feet of warehouse space.
Walter Lybeck, CEO of Tire Factory and Point S USA, says, “This expansion is in line with our strategic growth plans across the United States. We’ve developed a strong retail presence in 15 western states, and this represents the next step with our commitment to helping independent tire store owners across the country.
“This is a new distribution model for Point S USA, and demonstrates an ability for our cooperative to be nimble as we grow. We’ll now have the opportunity to more efficiently extend our independent-branded retail story and deliver our competitive tire pricing to new markets."
In the U.S., Point S has more than 200 stores in 15 states, and retail sales of more than $300 million. (There were 206 stores as of the cooperative's Feb. 2017 annual meeting.) But the footprint has been heavily focused on the western half of the U.S. Tire Factory, which joined Point S in 2015, is based in Portland, and its dealers have historically come from that region of the country. The group has long stated its goal was to expand to the east. Earlier this year Point S added two dealers in Oklahoma, and they too added distribution capabilities in that state, and for neighboring states.
Clint Young, director of sales and business development for Point S USA says, “We’re excited to help the independent retail tire store owner compete and win throughout this region. We feel our concept of supporting independent tire store owners with a great brand and a full menu of programs and services will be a narrative that is fresh and sought after in this part of the country.
“Through our co-op structure we will give retail tire store owners all the benefits of our economies of scale, and a proven worldwide brand that only exists to support them. In the immediate short-term we expect fast growth from this market, and we’ll achieve critical mass in the next few years.
"We believe this partnership provides us the capacity to service an additional 50 future Point S Member locations,” says Young.
Lybeck adds, "Like all businesses, growth is vital to our health. What differentiates us from our competitors is that members own our cooperative and share the profits of our business.”
Fabien Bouquet, CEO of Point S International, says, “North America is a strategic growth area for us, and this exciting development demonstrates the ability of our member countries like Point S USA to accomplish this goal. Close to 200 new retail locations have joined our International network this year.”
Worldwide, Point S has 3,500 branded locations in 32 countries on four continents and sells 16 million units annually. By 2020, Point S Tire expects to be the third-largest independent retail tire chain in North America.