If you’re an automotive aftermarket retailer and you’re not selling online, you run the risk of being left behind. If you are already selling online, great—but you may need to up your game if you hope to stay competitive going forward. Indeed, having a holistic sales approach—physical stores and e-commerce—may be the best way to compete in this rapidly changing and growing business. M&A may be the quickest way to get there.
The family-owned wholesale tire distributorships in the U.S. is a competitive, low-margin business. Most relationships between distributors and retailers don’t include long-term contracts. The only real differentiator for new players entering the market is price. Giorgio Andonian talks about what you need to do to stand out in these conditions.
Consolidation is rampant in the automotive aftermarket industry. Private equity and strategic investors are buying thousands of small stores and shops around the country, creating efficiencies until they’re ready to be sold off or go public.
Small businesses, often family-owned, are consolidating quickly as they are pressured from their customers to deliver better parts and products faster and cheaper. These businesses are looking at how they can stay competitive.