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Moves for Monro Tire Business Special Report LatinAmericaTire VW looking to Latin American & Pirelli plans to relocate 10 break into the 10 Caribbean Tyre Expo 11 motorcycle tire &AutomotiveReport pickup market set for Panama City production to Brazil May 27, 2019 $79 per year, $4 per copy www.tirebusiness.com More moves for Monro Chain eyes brand realignment, store updates, online sales By Kathy McCarron and Tire Centers, Tire Warehouse, Tire Barn [email protected] Warehouse and CarX Tire & Auto — into ve ROCHESTER, N.Y. regional brands and “take advantage of this op- As Monro Inc. continues gobbling up indepen- portunity to convert service stores to tire stores dent tire and auto service retail chains across the when we identify targeted demographics that country, the behemoth retailer is taking time to favor a tire store format.” consolidate, realign and update its operations. Monro didn’t identify which ve brands it will During its scal fourth-quarter conference go forward with. A spokeswoman said the compa- call May 21 with investment analysts, Mon- ny “will analyze customer data, brand awareness ro President and CEO Brett Ponton detailed and banner concentration market by market and Monro’s strategies going forward in the areas will be methodically prioritizing markets where of brand consolidation, store redesign, acquisi- they see the strongest potential for increased visi- tions, product mix and online sales. bility and traction of their tire banners.” Ponton In addition to continuing to expand its geo- Monro has operated two store formats in the Richard Smallwood, pres- graphic territory, Monro has set its sights on in- majority of its key markets with a focus on in- ident and CEO, Sumitomo creasing its customer base through its partnership with Ama- creasing store density. Its service stores — Monro Auto and Rubber North America, zon.com as well as development of its own online sales channel. CarX — each generate about $600,000 in annualized sales speaks to attendees at Meanwhile, Monro is putting more focus on tire sales while its tire stores generate about $1.2 million in sales. the Falken Tires Dealer with the intention of shifting some of its auto service-fo- “Overall, our goal is to increase brand awareness in our Invitational at the Chateau Saint-Martin & Spa in cused locations to tire-focused operations and reducing the regional markets, while lining our store banners with market Vence, France. number of retail brands its stores operate under. demand to optimize growth, speci cally where we identify Tire Business photo by Dave Zielasko Monro closed its scal year on March 30 with 1,197 com- opportunities for higher tire sales,” Mr. Ponton said. pany-operated stores and 98 franchised locations, which He added, “By optimizing brand awareness and ban- generated a record $1.2 billion in sales. ner concentration in targeted markets we can increase our Crossing into sales and relevancy in the marketplace without sacri cing Store branding service revenues. Importantly, last year we piloted this re- Over the years Monro has acquired and continued to op- branding strategy at a district in the mid Atlantic, shifting erate several regional retail brands. Now Monro said it will our few selected stores to tire-oriented brands.” new segment be leveraging customer data analytics and local brand aware- Meanwhile, Monro has begun to modernize and stan- ness to consolidate its existing nine retail banners — Mr. dardize the appearance of its stores as part of its drive for Tire Auto Service Centers, Tire Choice Auto Service Cen- consistency across all its locations that currently include a Falken targeting CUV market ters, Tread Quarters Discount Tire, Ken Towery’s Tire & Au- wide range of stores and formats. tomotive, Autotire Car Care Centers, Monro Auto Service SEE MONRO , PAGE 22 By Dave Zielasko explained, and car companies [email protected] are following by curtailing VENCE, France passenger car production in fa- With sales of crossover util- vor of CUVs, SUVs and light ity vehicles (CUVs) surging in trucks. But auto makers have Groups laud removal of tariffs North America, Sumitomo Rub- yet to segment the CUV vehicle By Miles Moore He exempted Canadian and Mexican steel and aluminum ber North America Inc. (SRNA) market as they have done with [email protected] imports at rst, but rescinded that exemption May 31, 2018. is evolving its Falken-brand tire passenger cars, such as for high WASHINGTON The U.S. and Canada announced removal of the tariffs in a lineup to serve customers better in performance, off-road use, etc. In an effort to facilitate approval of the U.S.-Mexico-Can- joint statement issued by Global Affairs Canada on May 17. this segment. That has left an opening, he ada Agreement (USMCA), the Trump administration has The two governments would eliminate all tariffs within two The aim is to get a step ahead said, for Falken to introduce a removed the respective 25- and 10-percent days, the statement said. Also, the U.S. of the competition and offer tires tire targeted at the estimated 17 tariffs on steel and aluminum im- and Canada agreed to terminate all targeted at a market segment that percent of CUV owners who ported from Canada and Mexico. pending litigation between them to date, according to Falken, is drive mainly on paved roads but In return, Canada and Mexico before the World Trade Organiza- underserved by the tire industry. who are likely to go off-road at will rescind retaliatory tariffs is- tion, it said. “It’s a new market segment. some point during their vehicle sued in response to the U.S. tar- Also on May 17, U.S. Com- Everyone knows that CUVs are ownership and who want a more iffs, both governments announced merce Secretary Wilbur Ross exploding,” said Rick Brennan, aggressive, rugged-looking tire. recently. issued a statement describing the SRNA’s director of marketing, Mr. Brennan and other Falken President Trump ordered tariffs tariffs as a total success for the U.S. in an interview with Tire Busi- executives talked about the op- on imported steel and aluminum “The president’s imposition of ness and during a presentation portunities in the CUV segment in March 2018 under Section 232 of Section 232 tariffs has brought Amer- at the 2019 Falken Tires Dealer and introduced three products the Trade Expansion Act of 1962, which ican steel and aluminum plants roar- Invitational April 28-30 on the and several tire size additions at allows the president to impose sanctions ing back to life, providing thousands French Riviera. a business meeting and during against product imports that threaten national of new jobs and billions of dollars of Car owners are moving to private conversations with the 36 security through harming U.S. industries. SEE TARIFFS, PAGE 22 the CUV-type platform, he SEE SUMITOMO, PAGE 20 ©Entire contents copyright 2019 by Crain Communications Inc. All rights reserved. Artist’s rendering of Big O honors dealers; Earnings Conti’s global headquarters 3 Tire Pros adds dealers drop for 4 Yokohama, Conti lays ceremonial Bridgestone 5 HQ foundation stone OFFICIAL TIRE OF THE ALEX MORGAN TOBIN HEATH U.S. WOMEN'S NATIONAL FORWARD FORWARD SOCCER TEAM U.S. WOMEN’S NATIONAL SOCCER TEAM U.S. WOMEN’S NATIONAL SOCCER TEAM Good luck to the U.S. Women’s National Soccer Team this summer in France! * with the purchase of 4 qualifying passenger Continental Tires!** ExtremeContactTM Sport ExtremeContactTM DWS06 PureContactTM LS TrueContactTM Tour ContiProContactTM ContiTouringContactTM AS ExtremeContactTM Sport PureContactTM LS ContiSportContactTM ControlContactTM Sport ExtremeWinterContactTM TrueContactTM QUALIFYING ContiSportContactTM 2 ControlContact SportTM SRS ProContactTM GX TrueContactTM Tour TM TM Plus TM TM TIRES ContiSportContact 3 ControlContact Tour ProContact RX SureContact RX ContiSportContactTM 5 ExtremeContactTM DW ProContactTM TX WinterContactTM SI ContiSportContactTM 5P ExtremeContactTM DWS06 PureContactTM **VISIT CONTINENTALTIRE.COM/OFFERS FOR COMPLETE DETAILS. June 1 - 30, 2019 *The Continental Tire Visa Prepaid Card is issued by MetaBank®, Member FDIC, pursuant to a license from Visa U.S.A. Inc. No cash access or recurring payments. Can be used everywhere Visa debit cards are accepted. Card valid for up to 12 months; unused funds will forfeit after the valid thru date. Card terms and conditions apply. Consumer Promotion Visit us on the web at www.tirebusiness.com TIRE BUSINESS, May 27, 2019 • 3 IndustryNews Monteverde earns IFA award Tire Pros adds 7 dealers, as Big O honors top franchisees including 2 in N.C., Okla. NEW ORLEANS By Don Detore Chris Monteverde, a Big O Tires [email protected] franchisee since 2004, was a big win- HUNTERSVILLE, N.C. ner at Big O Tires L.L.C.’s recent deal- Seven independent dealers in ve er meeting in New Orleans, garnering states recently adopted American a pair of awards. Tire Distributors Inc.’s Tire Pros retail Mr. Monteverde, who operates 19 identity, expanding the group’s reach which to partner, and Tire Pros was Big O stores in California and eight in to 640-plus locations in 45 states. “the clear choice.” Texas, was presented the group’s Point The new franchise locations in- “Through the national network of of Light award — which recognizes clude two each in North Carolina partners, our customers in Oklahoma extraordinary franchisees who have and Oklahoma and one each in Tex- and Texas are able to access the same contributed to the Big O organization as, Oregon and Washington. type of service nationwide, from a with their knowledge, expertise and TBC Corp. photo The new Tire Pros franchisees are: company they can trust,” he said. dedication — and was recognized as Bill Walker (in red jacket) was inducted into the Big O Tires Hall of Fame. He’s • Alliance Tire Pros, Cheney, Mr.
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