Industry Analysis & Industry Trends
The tire retail market has stabilized following the aftermath of the recession, with low single-digit growth in each of the past three years. As demand picks up across all sectors of the economy, revenue growth will continue in the five years to 2019. In particular, shifting consumer preference towards fuel-efficient tires will present a growth market for tire retailers. Government fuel-efficiency regulation will also stimulate demand for high quality tires.... purchase to read more
Industry Report - Industry Investment Chapter
The auto tire retailing market has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on labor, industry operators will devote $0.06 to capital investment. The primary component for industry operators is labor. Operators require employees to handle customer service, billing, inventory and technical installation. Additionally, staff must be knowledgeable about tire selection and fit. For brick-and-mortar tire retailers, customer service is central component to creating differentiation between competitors, requiring significant investment in labor.
Brick-and mortar tire retailers require a limited amount of capital equipment. Physical retailers primarily rely on machines for tire fitting and wheel alignment... purchase to read more