Groupe Touchette Inc. Acquires Atlas Tire Wholesale Inc.

MONTREAL and MISSISSAUGA, ON, Nov. 8, 2018 /CNW Telbec/ – Groupe Touchette Inc., one of Canada’s largest tire distributors, has taken a major step toward completing its Canadian market coverage by acquiring Atlas Tire Wholesale Inc.—a recognized leader that boasts a strong presence in Ontario. The transaction was announced this morning to both companies’ employees and clients. No reorganization is planned, apart from a few adjustments that may be necessary, and the two companies will gradually integrate the Ontario market over the next year.

The acquisition of Atlas Tire Wholesale Inc. enables Groupe Touchette to expand its operations, mostly in Ontario. Atlas Tire Wholesale Inc. is a leading tire distributor to car dealerships and independent tire retailers and it operates three distribution centres in the Greater Toronto Area, namely in MississaugaScarborough and Vaughan, and a fourth one, also in Vaughan, of over 182,000 sq. ft. to be in operation in the spring of 2019, which will become Groupe Touchette’s largest facility. Atlas Tire Wholesale Inc. also has operations in Alberta, namely in Edmonton and Calgary, as well as in Delta, British Columbia. Up to now, Groupe Touchette had been distributing tires in the Ontario market under DT Tire and TireLink from five distribution centres—including one in Brampton to serve the Greater Toronto Area.

Groupe Touchette is, therefore, pursuing the implementation of its business plan, which is aimed at accelerating its growth in the Canadian tire distribution market. With the acquisition of Atlas Tire Wholesale Inc., Groupe Touchette forecasts sales revenues in the range of $550 to $650 million.

Read the source article at CNW | www.newswire.ca

Atlas Tire Wholesale: Invested in the Future

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Atlas Tire has announced the company’s latest expansion plans, and they’re big!

Atlas Tire Wholesale Inc. recently informed their suppliers and key clients of a massive expansion project that is sure to change the industry landscape here in Canada, as well as further improve the quality of service Atlas Tire is able to offer tire retailers.

Read the source article at Autosphere.ca

M&A activity shuffles top retailers rankings; big keep getting bigger

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AKRON — In a year when Discount Tire/America’s Tire grabbed the North American tire retailing spotlight with the opening of its 1,000th store, mergers and acquisitions continued to play a key role in the evolving retail aftermarket.

Read the source article at Tire Business

Analysis: Changes in the tire distribution business.

At the start of this year (2018), Michelin and Sumitomo announced a plan to merge their tire distribution activities in North America. A couple of weeks later Goodyear and Bridgestone made a similar announcement with the launch of Tire Hub. Since then, Max Finkelstein and TreadMaxx have done something similar and formed Tire Distributors of…

Read the source article at tireindustryresearch.com

Goodyear Introduces ‘Roll,’ A New Tire Shopping and Installation Experience for Consumers

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The Goodyear Tire & Rubber Co. will introduce a new tire shopping and installation experience: Roll by Goodyear.

The service allows customers to shop for tires in modern showrooms located in lifestyle centers like strip malls with shops, salons and restaurants, or online at RollByGoodyear.com.

Read the source article at Tire Review

Linglong confirms $300 million deal for Brazil, Paraguay

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Linglong Tire confirms the signing of a US$300 million deal with Paraguay-based tyre distributor Sunset Tires. Wang Feng, chairman of Linglong Tire, put his signature on a strategic cooperation agreement along with Nabil Chamseddine, chief executive officer and president of Sunset, on 12 October.

Read the source article at Tyrepress

Martins Announces Canuck Tire Puck

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Martins Industries has announced a new tire/wheel trolley to their roster of tire equipment. Dubbed the Canuck Tire Puck (#MCTP) due to its Canadian origins and resemblance to the iconic ice hockey puck, the new trolley helps to prevent common workplace injuries and accidents by reducing the need for labor-intensive tire handling.

Read the source article at Tire Review

Consumer and retail trends driving growth of tire market e-commerce

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E-commerce has been a key business disruptor across all industries and is forcing change, innovation and growth in the tire market. Still relatively new to the business-to-consumer replacement tire market, online tire sales sites have become significant for consumer research into tire types, attributes, reviews, pricing and availability. This trend and the expansion of e-commerce in general are leading to growth in online sales of tires, according to a new Smithers Rapra report, The Future of E-commerce for Tire Markets to 2023. (TRAC Members receive 15 per cent discount).

Across major tire market segments and geographic regions, the number of B2C replacement tires purchased online is estimated by Smithers Rapra at nearly 100 million units in 2018, or about 6.5% of the global market. This is expected to rise by an average of almost 19% per year to over 236 million in 2023, when the share will be nearly 13%.

 

E-commerce tire sales channel market 2015-23, by volume (million units)

 

Source: Smithers Rapra

 

Value growth will be somewhat higher, at 19.7% per year CAGR, from $7.1 billion in 2018 to $17.3 billion in 2023, faster than unit growth and reflecting modest price increases. While a degree of price competition within the online channel and versus offline retail will continue, the convergence of online and offline channels and the increasing importance of user experience relative to price will support higher prices in the channel over time.

End-use applications

Reflecting the numbers of vehicles in use, rates of tire replacement and rates of e-commerce penetration, the passenger car and light truck (light vehicles) segment is by far the largest, at 81% of volume in 2018, followed by motorcycles (12%) and then medium and heavy trucks and buses (7%). Light vehicles have been and remain dominant in absolute value and volume terms. In unit terms, motorcycles are a distant second, but in value terms, medium- and heavy duty trucks and buses are the next most important, although a much smaller segment.

Trends driving e-commerce tire sales

 

Consumer behaviour

Consumer preferences are ultimately the main market drivers for tire e-commerce with technology and retail developments enabling the change. Consumer behaviour and retail trends behind the uptake of e-commerce in tires include price sensitivity, reduced brand loyalty, time sensitivity and, increasingly, a desire for an omni-channel, which blends features of online and offline channels (already the case to some extent due to tire installation requirements).

Fitment proliferation

Fitment proliferation, the increasing number of available tire sizes, is also contributing to the growth of tires sales via the internet. This has been driven in part by the increase in rim diameters and the greater use of high-performance tires as OEM fitments, which is putting a strain on physical showroom and inventory space. E-commerce options help retailers and customers alike with education and availability. 

Growing economies and emerging markets

General economic and demographic growth serve as top drivers for tire e-commerce. B2C replacement tire e-commerce was initially a phenomenon of developed markets, led by Western Europe, followed by the US, which still enjoy the highest penetration rates. However, Asia-Pacific has already become the largest in unit terms and is on track to pass Europe in value terms during the forecast period, due to its large population and rapidly growing tire market (mostly motorcycle tires). Greater internet penetration and e-commerce readiness in developing markets are fueling the expansion of online tire sales. Very rapid growth will come from Eastern European countries and emerging economies such as China, India and Brazil, where levels of e-commerce penetration and vehicle density are comparatively low and growing.

For more information on the Smithers Rapra market report The Future of E-commerce for Tire Markets, visit https://www.smithersrapra.com/market-reports/tire-industry-market-reports/the-future-of-e-commerce-for-tire-markets-to-2023

North Carolina Tire Dealers in Recovery After Hurricane Florence

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Days after Hurricane Florence touched down on the east coast of the U.S., some tire dealers in North Carolina are in the process of getting their shops up and running again after sustaining damage from the storm.

North Carolina Tire Dealers Association Executive Director Reece Hester said eastern North Carolina has already had its rainiest year to date and has received eight months worth of rain in three days from Hurricane Florence. …

 

Read the source article at Tire Review

Global Automotive Tires E-retailing Market 2018-2022

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The global automotive tires e-retailing market is expected to post a CAGR of over 12% during the period 2018-2022, according to the latest market research report from Technavio.

Read the source article at benzinga.com