Modern Tire Dealer

JAN 2019

Magazine for the professional tire industry

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M T D J a n u a r y 2 0 1 9 40 2 0 1 9 F a c t s S e c t i o n : T i r e D i s t r i b u t i o n U.S. CONSUMER TIRE RETAIL MARKET SHARE (SALES DIRECTLY TO THE END-USER) Distribution channel 2018 2017 2016 Independent tire dealers 62.5% 61.5% 61.0% Mass merchandisers 10.0% 11.5% 12.0% Warehouse clubs 8.5% 9.0% 9.0% Auto dealerships 9.5% 9.0% 8.5% Tire companies/company- owned stores 6.5% 6.5% 7.0% Miscellaneous outlets 2.0% 2.5% 2.5% Online tire sellers, which include independent tire dealers like Tire Rack and Simpletire.com, mass merchandisers like Amazon. com, and tire manufacturers like Goodyear, account for 8% of the retail market, up from 6% in 2016. WAREHOUSE CLUB U.S. STORE COUNT e number of warehouse clubs in the U.S. has grown only 1.6% since 2015, primarily because Sam's Club closed more than 60 stores in 2018. In contrast, Costco has steadily increased its store count every year since the turn of the 21 st century, from 237 to 533. at's an increase of 125%. Warehouse club 2018 2017 2016 2015 Sam's Club 597 660 660 655 Costco Wholesale Corp. 533 518 506 470 BJ's Warehouse Club Inc. 223 221 214 206 ANALYSIS: TIRE SELLING VS. INSTALLING Close to 95% of the respondents to the 2018 BrightLine Tire Survey purchased their new tires from the tire installer. Installer 94.4% in 2018 94.5% in 2017 Online-only retailer 3.1% in 2018 2.8% in 2017 Different in-market retailer 1.8% in 2018 2.2% in 2017 Tire manufacturer 0.6% in 2018 0.5% in 2017 "Based on the results of our 2018 nationwide survey, 10% of all tire buyers pay for their tires online," says Randy Ladd, owner of BrightLine Marketing LLC. SOURCE: BRIGHTLINE MARKETING LLC (WWW.BRIGHTLINEMARKETING.COM) U.S. CONSUMER TIRE WHOLESALE DISTRIBUTION CHANNEL MARKET SHARE (SALES FROM THE FIRST CHANNEL OF WHOLESALE DISTRIBUTION TO THE NEXT CHANNEL OR END USER) Initial channel 2018 2017 2016 Independent tire dealers 79.5% 79.0% 78.0% Tire company stores 7.0% 7.0% 7.5% Miscellaneous outlets 13.5% 14.0% 14.5% "Miscellaneous" includes mass merchandisers, warehouse clubs, car dealers, auto parts chains, muffler shops and oil companies/service stations. COMPANY-OWNED RETAIL STORES IN THE U.S. FROM ONLINE TO... ? 0 500 1,000 1,500 2,000 2,500 2018 2018 2018 2008 Bridgestone 2,200 2,047 600 671 81 0 Goodyear Nokia/Vianor 2008 2008 SOURCE: MTD 2018 CONSUMER SURVEY ON TIRE PURCHASING Aer buying tires online, consum- er s t a k e t h e d o - it-for-me route at le ast 75% of the time (s ome may choose to deliver the tires to their preferred installers personally). 75% Shipped to installer 25% Shipped to consumer directly

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