Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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RET AILING TODA Y Hot wheels TIRE DEALERS PROSPER AS AMERICANS HOLD ONTO THEIR CARS LONGER By Dees Stribling T Americans are tending to keep their cars for longer than they used to, and an older car can be a strong positive for tire sales. Cars and light trucks on U.S. roads now are nearly 11 years old on average, according to automobile market analysis firm R. L. Polk & Co. Of course, that could change if car sales going forward remain strong. But the overall economy being what it is, there is no assurance that this will happen. And the longer a car is kept, the more tires the owner will be burning through, so things may stay rela- tively bright for tire retailers. "The best sign of better times ahead for tire retailers is that tire manufacturers are busy building or ramping up manu- facturing facilities," said Mark Cook, a spokesman for the Tire Industry Asso- ciation. "They're anticipating greater de- mand, which will create a better climate 24 SCT / APRIL 2012 as well as aftermarket parts suppliers will see increased business opportunity with customers in need of vehicle service," said Mark Seng, who heads Polk's global aftermarket practice. HE HEALTH OF THE MOTOR- vehicle tire business depends, perhaps too prosaically to mention, on how many vehicles cover how many miles of roadway and how much rubber wears out in the process. And this is virtually the only demand driver, because no one changes tires simply because something more fashionable has hit the market. for tire dealers and provide opportunities for their retail expansion." Others concur. "Dealer service depart- ments and independent repair facilities The retail tire industry is a sprawling, fragmented business. There are a few large chains, some regional ones, and a lot of small chains and independent shops. And as a segment, tire retailing may not always be well defined. Many of these chains offer not just tires, but also aftermarket parts and services, such as car batteries and oil changes. In some cases, tires may only be part of a big- ger operation, such as the tire bays at a Costco or Sam's Club. The largest U.S. retail tire purveyor is Juno Beach, Fla.–based TBC Corp., whose TBC Retail Group operates some 800 stores offering the Merchant's Tire, NTB and Tire Kingdom brands, plus nearly 500 Big O Tire franchises, ac- cording to trade publication Modern Tire Dealer. Discount Tire Co. and Munro SULLIVAN TIRE & AUTO IS ONE OF THE LARGEST U.S. TIRE DEALERS.