Blackcircles Aims for UK Retail Revolution

Blackcircles.com is aiming to turn 700 independent garages across the UK into franchisees. And what’s more, managing director, Mike Welch, has a five-year plan to capture 10 per cent of the market and plans to enter Europe in 2006.

Blackcircles.com is something of dotcom success story. Founded in 2001 when Mr Welch was 23, the company currently operates a network of 987 independent garages serving consumers from “Thurso to Truro.” Next the 27-year-old managing director is aiming to capitalise on this position by turning 700 of the garages into branded franchisees, making local independent garages into outlets linked to Blackcircles’ ordering and stock checking systems.

“For too long the tyre retail market in the UK has lacked innovation and any real sense of customer focus. So our announcement is not just about selling tyres it is cleaning up a whole industry and giving consumers greater choice and access to the most competitive tyre prices in Europe. The franchise is an add-on for local independent garages and dealerships and is an opportunity for them to attract new customers and retain business in the face of increased competition from the large national chains,” explained managing director, Mike Welch.

In four years of business, Mr Welch’s concept has proved itself as more than just a good idea. While the first year’s turnover was a solid £50,000, by 2005 this had rocketed to £6 million. However the managing director has no intention of stopping there. “Creating franchisees is a momentous step for the company and will quadruple our sales almost over night. We have an excellent network already in place and by creating franchisees we are making it work for not only Blackcircles but the independent garages and dealerships which pride themselves on delivering a premium service,” said Welch. The company predicts 2006 turnover will reach £15 million.

A rising star

Mike Welch left school at 16 to become a tyre fitter. He launched his first tyre business, MW Motorforce, while still in his teens with a £500 grant from the Prince’s Trust. It wasn’t long before he was head-hunted by Kwik-Fit. At Kwik-Fit he was given the role of new business and e-commerce development manager. But it wasn’t long before Mr Welch changed tack again.

In 2001 Mike Welch, then 23, was asked by the marketing director of Kwik-Fit what he wanted to do. “I want to be the chief executive of Kwik-Fit,” came the confident reply. Told that unless he could wait 30 – 40 years it was never going to happen, Welch decided to leave Kwik-Fit and set up his own company the same week. In 2003 Mike Welch won the Shell LiveWIRE Young Entrepreneur of the Year award. He immediately reinvested his £10,000 cash prize back into the business.