A&A Tyre & Auto Services joins First Stop
Bridgestone, First StopBridgestone UK retail manager Mark Widdows has confirmed that the first tyre retailer to sign up to the newly-revamped First Stop programme is Cardiff-based A&A Tyre & Auto Services.
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First Stop aiming for 220 branches in four years
When Mark Widdows left HiQ to head up the First Stop project as UK retail network manager, Bridgestone EMIA in October 2019, it was a fair guess that the revamped First Stop would end up competing with HiQ for the role of leading UK tyre retail franchise operation. However, six months into the role, Tyres & Accessories met up with Widdows and learnt that the new First Stop retail proposition has both ambitious plans and a comprehensive franchise offer.
Goodyear not looking to buy back all HiQs
Following the news that Goodyear has bought one of its largest and longest-established HiQ franchisees, Easy Tyre and Autocare, Tyrepress got in touch with executives in order to find out more. For example, how much money changed hands? And, considering the latest purchase is the second acquisition of its kind, is Goodyear planning to go full-circle with retail ownership? The short answer is no. But a Goodyear/HiQ spokesperson did say “the acquisition of Easy Tyre and Autocentres further strengthens the competitive advantage of Goodyear and HiQ”, adding:
All 15 Quick Lane centres offer MOTs
All of Quick Lane’s 15 centres now offer MOT testing. The news follows the Bracknell site’s attainment of MOT testing certification from the Driving and Vehicle Standards Agency (DVSA).
Quick Lane, which has been operating as a franchise in the UK for a year, sees the burgeoning MOT market as a key source of business, with dedicated bays, equipment and testers in each Quick Lane location. Its strategy to provide motorists with convenience with confidence, together with a service that fits around driver’s needs is paying off, with plans to extend the network further throughout 2020.
Goodyear buys Easy Tyre and Autocentres
Goodyear Tyres UK Limited has acquired Easy Tyre and Autocentres, which runs 17 HiQ branches as a franchisee.
Easy Tyre and Autocentres’ branches span from Telford to Kettering, in a geographical area with a high value car parc and, according to Goodyear, represent the “second step” in the company’s ongoing retail strategy. All sites will become Goodyear’s equity operating under the HiQ brand going forward.
Kwik Fit Italy now at 57 centres
Kwik Fit’s first Italy National Convention has taken place in Milan, celebrating the network’s growth to 57 centres. The event, with its title “Choose Kwik Fit. Being Kwik Fit” highlighted the strength of the Kwik Fit brand, with specific reference to Italy, and focused on the shared values of the company and its franchisees.
First Stop names Mark Widdows as retail manager
First Stop has recruited Mark Widdows to the senior position of UK retail network manager after working with Goodyear Dunlop for 20 years, where he latterly served as national franchise manager for the HiQ network. The recruitment is seen as a statement of intent, as First Stop aims to grow its network and position itself as a major player in the fast-fit sector.
Point S signs Philippines master franchise in global push
Point S has expanded into the Philippines market. Connecting with the 7,641 islands that make up the Philippines is seen as a strategic move, following the operations expansion into India and Malaysia. According to the company, it will significantly increase Point S’s footprint in the Asian and global tyre landscape.
First Stop welcomes Harlow-based Uncle Tom’s Motorist Centre to network
The extension of First Stop’s fast fit network has continued to accelerate with the addition of Uncle Tom’s Motorist Centre. The Harlow based garage’s owner Laurence Nicholls has 45 years of experience, making Uncle Tom’s a mainstay in the community. He said the decision to become a First Stop partner would enable his business to continue improving and adding more strings to its bow.
Bridgestone 10th best Aussie franchise
Tyre maker Bridgestone has ranked 10th in the 10th annual list of Australia’s 10 best franchises, as voted by franchisees across the country.
Kwik Fit opens 10th branch in Hungary
Kwik Fit has begun automotive repairs and servicing at its 10th location in Hungary, with the addition of a new centre in Kecskemét.
The opening ceremony for the centre was performed by Olympic medal winning wrestler Norbert Növényi and István Bogasov, Kecskemét city councillor, who joined centre owner Gyorgy Meszaros to mark the start of operations. Gyorgy Meszaros is running the Kecskemét centre under a franchise agreement with Kwik Fit Hungary. Meszaros has operated a car dealership on the site since 2003 and saw a Kwik Fit franchise as a way to offer customers a full range of automotive maintenance and repair services under an internationally respected brand.
Hankook Tire acquires Australia’s JAX Tyres
Australia’s JAX Tyres is now entirely owned by Hankook Tire. On 23 January, the South Korean firm acquired a 100 per cent stake in the franchise network of tyre retailers from its principal shareholder, company chairman Fred Hurrell, and others. The deal covers 83 outlets in the eastern states of Australia. While Hankook Tire hasn’t disclosed the sum it paid for JAX Tyres, Pulse shares that market observers estimate a KRW 100 billion (£68.8 million) price tag for the transaction.
Manchester tyre store PPM Autocare rebrands as HiQ West Gorton
HiQ has added Manchester tyre store PPM Autocare to its franchise network. The store, which has a good local reputation according to HiQ, will reopen as HiQ West Gorton. Commenting on the decision to move to the HiQ Network, workshop manager Phil Statham, said: “Having previously worked for HiQ I knew how PPM would fit well into the network. The level of support and communication we received prior to joining the HiQ network was excellent. It made the move to a HiQ branded store seamless. We are excited to see where the future takes us with HiQ.”
Michelin develops its retail position and Certified Centre Network
Michelin already has one of the most recognised brands in the market. Now the company is taking steps to ensure the distribution part of the business operates at the same level. At the end of February Tyres & Accessories met with Oliver Gros, head of ‘go to market’ distribution development within UK and Eire, who – you may remember from previous interviews in these pages – was previously head of two-wheel at Michelin Tyres Plc. At the same time we spoke with Mark Coleman, partnership and certification programme (part of what Michelin calls its distribution team, itself an extension of the sales and marketing team), with a brief contribution from sales director Malcolm Scovell who was en route to another meeting. The focus of conversation was on the development of Michelin’s position in the retail distribution of its various product lines and specifically on the effort Michelin is putting into its certified centre valued added scheme in order to re-develop its links with small and medium sized tyre retail businesses.
Update: HiQ to Franchise Off 109 Equity Outlets
HiQ has unveiled plans to “accelerate” the company’s franchise offer by transferring 109 existing company-owned stores into 15 regional zones for regional as well as national investment. The news came in parallel with the launch of HiQ’s sponsorship of this year’s British Touring Car Championship. Company representatives told Tyres & Accessories that this seven figure motorsport investment represents the single largest marketing investment Goodyear Dunlop has committed to the HiQ brand.
In a further twist, HiQ managing director Neil Burrows announced that he and “three members of the management group” are interested in investing into a “significant part” of the network themselves, demonstrating they really are willing to put their money where their mouths are regarding the franchise’s development. Therefore, in the interests of transparency, Neil Burrows and the other three as yet unnamed managers will be assigned to special projects (such as managing the BTCC sponsorship deal) within the Goodyear Dunlop group.
The news that Goodyear Dunlop is effectively franchising-off 109 of its retail outlets also goes some way to further explaining the recent decision to transfer former Goodyear Dunlop Commercial Director, Robin Sharpe, to “special projects.” With Burrows team’s decision to bid for HiQ in mind, it now appears that Sharpe will manage the HiQ team until the final announcement regarding the franchising of the HiQ equity branches has been announced.
Goodyear Dunlop representatives told T&A that the jobs of all those involved are secure and, in the event that their bid is not successful, they will be free to return to their former positions. The company will be unveiling details of its nationwide franchising programme on 31 March, with the definitive structure following in the summer.
At the time of the announcement Goodyear Dunlop Managing Director Mark Brickhill stated: “The fact that Neil and his team wish to invest in HiQ is a signal of the confidence that management have in the future success of HiQ. However, it is vital that we have complete independence and transparency during the franchise application period, which is why we have appointed Robin to lead the HiQ team during the next few weeks.”
“There are huge opportunities in the vehicle servicing market due to the lifting of restrictions on who can carry out servicing work on vehicles without affecting warranties. This, coupled with aggressive new product development plans from Goodyear and Dunlop, means that HiQ is in a strong position to grow significantly over the coming years.”
The total number of HiQ outlets nationwide as of February 2008 stands at approximately 120. The three-year plan unveiled last year is to more than double this number by 2010. The target now is for 60 more retail franchisees to have joined the network by the end of 2008.
Neil Burrows has previously stated that the company is initially interested in attracting franchisees in the North West and within the M25. While this is still true, the strategy for 2008 is also to fill gaps in the market. For example, at the time of going to press, there wasn’t a single HiQ outlet in Norfolk. “Longer term we are not limiting ourselves to 250 outlets,” Burrows commented, explaining that in the future retail outlets would be run by a combination of single centre owners and multi-store franchisees. The example of one franchisee in Cumbria exemplifies the way a multi-store franchise might operate. This franchisee is exclusively responsible for HiQ sales in the Lake District and as such he has the opportunity to enter into dialogue with the company regarding development of further HiQs in the area.
Over a year since HiQ relaunched itself as a car and van only tyre specialist, plans to upgrade the look and feel of the network continue to progress. 30 outlets are already refurbished in what are still the early stages of three to five year upgrade plan. HiQ’s novel use of the Internet as a sales tool is also said to be expanding following the system’s soft launch last August. While sales generated through the online system still represents “less than 5 per cent” of overall sales, this is expected to increase significantly as the company adds additional tyre brands and servicing options to the system.
Seven-figure sponsorship investment
While the launch of HiQ’s maiden year as title sponsor of the British Touring Car Championship (BTCC) may have been upstaged to some extent by the news of the radical changes within HiQ’s ownership structure, it would be a mistake to underestimate the significance of this deal.
“The HiQ business is a core part of Goodyear Dunlop’s plan for profitable growth and [the] HiQ MSA British Touring Car Championship launch is evidence that we are continuing to invest to build HiQ as a vital channel to market for us. The HiQ network growth will be through franchising. Our existing franchises have been tremendously successful and there is significant interest from existing and potential new franchisees in joining us to invest in HiQ,”
During the BTCC/HiQ launch press conference Neil Burrows explained that he first entered talks with the BTCC series director and administrator on the subject of a sponsorship deal roughly a year ago. According to Burrows, the arrangement works at every level and the partnership “really has legs” for future development.
One example of this is the running of race evenings in outlets near race meetings, featuring racing stars and experts. The first of these will take place at the HiQ in Grays, Essex, and is expected to present a strong PR and promotion opportunity for the brand. Apparently the only problem with this kind of event is there isn’t enough races in the season to cover all 120 HiQs.
Another example is the discount promotion HiQ is currently running, with HiQ offering discounts of up to 20 per cent on “race track inspired” Dunlop tyres at stores across the country as a way of celebrating the tyre retail chain’s first year as sponsor of the British Touring Car Championship.
“We are delighted to be sponsoring the MSA British Touring Car Championships. It is a huge development for HiQ and we want to share our delight with customers. We have agreed to knock 20 per cent off a range of brands,” HiQ managing director Neil Burrows commented, adding: “The BTCC has proved that it can deliver high value of advertising worth, with live ITV coverage, the biggest UK motor sport attendance figures and broad media exposure. It gives HiQ a perfect opportunity to promote our unique offering as we re-launch and grow our network across the UK.”
