When NDI Group recently dropped its plan to acquire Euromaster Danmark after the Danish Competition and Consumer Authority voiced concerns about competition, Euromaster Group commented that its future may include “a possible new agreement with NDI” that covers “some” of its activities in Denmark. And so it is – Super Dæk Service, the tyre and workshop chain owned by NDI, has agreed to acquire nine Euromaster branches.
Marubeni Corporation (Marubeni) has raised its stake in Mexican tyre distributor Radial Llantas S.A.P.I. de C.V. (RL). Marubeni initially bought a 49 per cent shareholding in RL back in 2016. On 21 August 2023, Marubeni confirmed that it now owns 80 per cent of RL thereby making RL a subsidiary of Marubeni.
During the last few years, tyremakers have repeatedly increased prices. The combination of pandemic-related complications, lower car production rates, higher shipping costs as well as higher raw material costs meant that was inevitable. More recently, the situation was compounded by unusually high rates of general inflation driven by increased energy costs that came as the result of war in Ukraine. However, shipping costs are now lower than they were and industry sources report that tyre manufacturers are beginning to change their previously one-way price movement policy. But is that reflected in sell-out pricing? Specifically, what about the stereotypically more price-drive online etail tyre business? Tyres & Accessories got in touch with Encircle Marketing, which specialises in the kind of market research that can answer those questions, in order to find out.
There’s no denying that the tyre business has become more digital and connected than ever before, but there are a number of sides to that equation. We know that between 60 and 80 per cent of tyre-buying consumers were doing pre-sale research online before the pandemic. Similarly, industry insiders have been saying that 10 per cent of tyres are bought online for something like a decade now. But anecdotal evidence from tyre retailers themselves reveals that, amongst those working for the large chains at least, many customers walk through the door to receive a tyre change that has already been booked online. Apparently, some of the younger generation just walk in and hold up a QR code on their phone! This month’s Tyres & Accessories looked into these kinds of questions, asking what it means for the tyre business to be digitally native. And it starts with a brand-new ranking of the leading tyre retail, e-tail and tyre comparison websites.
Kwik Fit is to join the Independent Automotive Aftermarket Federation (IAAF). With more than 600 centres nationwide, the country’s largest tyre retail chain will support IAAF’s growing network of garages, parts distributors and suppliers. It will also work closely with the Federation on lobbying and campaign issues such as Motor Vehicle Block Exemption Order (MVBEO) and MOT testing.
Last Friday we reported on the first Point S outlets in Macau. Closer to home, Point S International shares news of expansion in the Iberian Peninsula. Entry into the Spanish market means Point S now operates in 26 countries across Europe. Globally, Point S is now present in 51 countries.
Indian online tyre retailer Tyresnmore.com is now a wholly owned subsidiary of Ceat Ltd. On 4 August, the tyre maker entered into a share purchase agreement with Tyresnmore Online Private Limited to acquire 108,637 equity shares in the business, an amount equal to a 39.34% of its total share capital.
Cosmo Tires and Paul’s Tire Services of Hollywood, Florida have opened the first Cosmo-branded retail store. The 8,000 square foot facility marks a significant milestone for Cosmo Tires offering “an enhanced tyre shopping experience for its customers.”
After arriving in mainland China in mid-2020 and Hong Kong later that year, Point S has now gained a presence in Macau with the establishment of two franchise outlets. The first of these, Point S Kong Nam Tyre and Auto Supplies in Taipa, opened its doors on 27 July.
Kwik Fit and its other ETEL-related brands (Tyre City, Tyre Pros and Central Tyre) have dominated the UK tyre retail landscape for years. More recently, Halfords has made our annual tyre retail ranking a two-horse race. However, Michelin’s ATS Euromaster network remains a significant player and other chains such as the Micheldever- and ultimately Sumitomo-owned Protyre have grown consistently over a long period of time. But none of that tells the whole story. While big chains generate significant levels of value and volume, franchise networks like HiQ and First Stop represent another dimension. And medium-sized chains are often so good at what they do that they end up being bought by larger businesses at a premium. And yet none of that reflects the importance of the vast majority of the market – the independent tyre businesses with one or two centres. That’s why June’s Tyres & Accessories aimed to present a more panoramic view of the undeniably indispensable tyre retail business. Here, T&A presents our annual tyre retail ranking as a way of keeping you informed of the lay of the land in the ever-changing tyre retail landscape.
11th-placed Just Tyres maintained a total of 38 tyre retail locations, according to our 2023 table. However, that figure is one centre lower than it was this time last year. Nevertheless, the total remains one branch greater than five years ago.
Lodge Tyres staff, valued customers, and many local residents of Fakenham in North Norfolk recently enjoyed a fun day at the centre in Hempton Road in the town. The event, which was supported by Lodge key supply partners, Bridgestone UK and Micheldever Tyres, saw the usually busy garage turned into a mini theme park for the day.
Bridgestone is introducing the B-select retail concept in its home market of Japan. Around 700 company-owned and exclusive Bridgestone retailers have joined the B-select B2C network, while within the commercial segment some 400 B-select stores will be operating by the end of the year.
On 18 May, well-known German garage chain A.T.U Auto-Teile-Unger Handels GmbH & Co. KG (ATU) suffered a cyber attack that put some of its systems and servers out of action. That led the company to warn customers they would experience “various restrictions” and should expect longer waiting times.
Elliott Investment Management L.P.’s 11 May open letter to Goodyear’s board of directors sent shockwaves through the company and the markets. Essentially, Elliott’s expounded on its “deep conviction in the opportunity for Goodyear to improve after more than a decade of underperformance”, which was widely interpreted as laying down the gauntlet to Goodyear’s board and most senior executives. With Elliott calling pistols at dawn in the mid-west, the question is: is it time to buckle up and circle the wagons in Akron or are vultures circling over Goodyear? Here, Tyres & Accessories presents an in-depth analysis of Elliott’s arguments for enormous change, critically evaluating the problematic areas Elliott identifies along the way. In order to support our analysis, we spoke to senior executives close to Goodyear, those with first-hand management experience in Akron, financial analysts and third-party market researchers.
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Rupixen; Unsplash
Halfords
Kwik Fit
TGI
First Stop