Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/58695
RET AILING TODA Y Muffler Brake are nearly as large, with some 800 tire stores each. A handful of chains operate about 100 stores, but 93 of the Modern Tire Dealer top 100 oper- ate fewer than 100 stores. The retail end of the tire business is likely to remain dispersed, says Brian A. Sexton, a co-founder of aftermarket- parts consulting firm AutoTech. "The industry will continue to experience consolidation, much as it has over the past 10 years," Sexton said. Well- financed and well-operated companies will continue to grow primarily through organic new store development, Sexton says, while others will focus on strategic acquisitions. Organic growth represents a shift for TBC (formerly Tire & Battery Corp.), which grew vigorously through acquisitions beginning in the 1990s. The company was taken private when Sumi- tomo Corp. bought it in 2005. Smaller chains are expected to keep to organic growth as well. Family-owned Sullivan Tire & Auto Service, which has 56 stores in New England, opened four last year and is set to open about that many again this year. "Interest rates will continue to be low, and there are a lot of opportunities for strong companies to expand," said Paul Sullivan, the Bridge- water, Mass.–based company's vice presi- dent of marketing. "We will still con- tinue to have older vehicles on the road that need tires and auto repair." One seemingly acquisition-happy tire retailer is Monro Muffler Brake, which has built much of its business on tire sales. Monro acquired all seven Terry's Tire Town stores and all 24 Ves- pia Tires stores last year, following three major acquisitions in 2010 and three in 2009. The company continues to see ac- quisition as critical to its growth going SITES WANTED! KIDDIE ACADEMY® CHILD CARE FRANCHISE forward. "Overall, we anticipate con- tinued moderate organic sales growth throughout the remainder of the year as a result of the macroeconomic envi- ronment — continued high unemploy- ment, increased tire and gas prices, and low consumer confidence," said Monro Chairman and CEO Robert G. Gross. One important way tire retailers dis- tinguish themselves is customer service. For Sullivan Tire & Auto, treating cus- tomers well begins with treating the em- ployees well. "Training is a high priority for us," Sullivan said. "We have over 100 master technicians on staff who are tire-industry-certified tire techni- cians. Over a quarter of our work force has been with us for 11 years or longer. We've never had a layoff and have never cut our benefits package. We find that satisfied employees translates to better customer service." SCT Shopping Center Q Management Q Leasing Q Redevelopment r to r o Contact: Turn-key 15 year lease Freestanding, office, retail Ground-up leasing opportunities 7,000 – 10,000 square feet with adjacent outdoor play area Visit www.kiddieacademy.com/RECON2012 to see where we are developing and submit a site or set up a meeting at ICSC 2012 RECON in Las Vegas in May. All developers, landlords and brokers welcome. This advertisement does not constitute an offer to sell a franchise. 26 SCT / APRIL 2012 Jill Strumpf, CSM Q Lenore Reynolds,CCIM Bruce Strumpf, Inc. Shopping Center Management, Leasing & Redevelopment 2120 Drew Street, Clearwater, FL 33765 • )D[ e-mail: lenorereynolds@brucestrumpf.com www.brucestrumpf.com T u S r n Ye r o u r v i n P r o g y s o u f p e y Over To The Expert ver 30 years