TBC Corp. has come a long way
since its start in 1956.
The company’s Tire Kingdom
and NTB Tire & Service Centers
chains have grown to encompass
nearly 630 total outlets. And TBC continues
to expand its Big O Tire LLC and Midas
International LLC franchise networks.
The firm’s management team also continues to evolve. Erik Olsen, TBC’s longtime
president and CEO, stepped down last month, when former Michelin executive
Laurent Bourrut took the company’s helm.
Marty Krcelic, TBC’s executive vice
president and the president and COO
of TBC Brands, also retired at the end of
June. Stepping into his role – along with
expanded duties – is Geoff Doster.
In this interview, Bourrut elaborates on TBC’s strategy of focusing on
its “core” businesses, what’s next for Tire
Kingdom and NTB and more. (Editor’s
note: The interview also contains comments from Olsen. It was conducted before he retired from the company.)
MTD: TBC sold 112 NTB stores to Mavis
Tire Express Services Corp. in 2020. At
the time, you mentioned that “further
consolidation of the NTB footprint is
consistent with our strategy to focus on
our core markets.” Can you elaborate on
that strategy?
Olsen: As we execute TBC’s growth plans
and strategies, we continuously analyze the
assets in our portfolio and periodically fine tune them to drive superior performance
in our core focus areas.
TBC’s core focus areas are wholesale,
franchised stores and company-owned retail
locations. We are vertically integrated in the
United States to leverage TBC Brands and
National Tire Wholesale (NTW) to drive
growth within the NTB, Tire Kingdom,
Big O Tires and Midas network of stores.
To drive superior performance, we will
continue to focus our retail brands on
high-growth, strategic geographies.
Consistent with that stated strategic
action plan, TBC elected to further consolidate and focus NTB’s geographic footprint
with the sale of the 112 NTB locations to
Mavis. At that time, NTW and Mavis also
entered into a distribution relationship.
The cash from this sale allowed TBC to
further invest in our core operating units.
MTD: Are other store divestitures
planned, either within the Tire Kingdom
chain or the NTB chain?
Bourrut: As an organization, we will
continue working towards a
sustainable, competitive edge
as we make decisions in the
best interest of our associates,
customers, franchisees, supplier
partners and shareholders.
MTD: Is TBC planning to
expand into new markets with
either NTB or Tire Kingdom
or both, and if so, can you tell
us where?
Bourrut: Our cross-functional
teams continue to work alongside
one another to identify expansion
opportunities that support our
underlying principles and our
strategic initiatives.
As an organization, across
all of our business units, we will
measure and define opportunity
by the impact it will have on
our team members, our customers in the
communities that we serve today and
the potential customers we may have the
opportunity to assist.
MTD: Does Tire Kingdom’s go-to-market
strategy differ from NTB’s strategy, and
if yes, in what ways?
Olsen: Our go-to-market strategy for NTB
and Tire Kingdom are extremely similar.
The main difference is simply the target
market from a geographical perspective, as
Tire Kingdom is Florida-based and NTB
has a much wider footprint.
MTD: What are your plans for Tire
Kingdom and NTB during the rest of
2021? Will we see stores cropping up in
new markets?
Olsen: This past year, in our company-owned retail locations, we achieved the
highest customer rating scores in company
history – a true accomplishment, especially
during a pandemic.
Bourrut: In 2021, that trend continues
as we remain focused on the
customer and will continue as
we strive to be the trusted and
recognized leader in the replacement tire and automotive service
industry.
Regarding the opportunity
to service additional customers, we will always be keen on
the idea of growth. We must be
absolutely sure, however, that
the decisions for growth align
with our strategic vision.
MTD: What’s your opinion
of the current state of the U.S.
retail tire market and related
opportunities?
Olsen: The replacement tire
industry remains fundamentally
sound. With the steady improvement of projected miles driven
expected to increase, we’re bullish about
the U.S. retail tire market.
Bourrut: As recognized by the U.S.
Tire Manufacturers Association, tire shipments showed an increase over forecasted
projections, further indicating incremental
recovery within the industry. We’re eager to
assist customers as the service provider of
choice as travel demand increases. Reports,
current sentiments and the momentum
from the TBC team support our sense of
optimism about the future.
