KMart Buys Shell Australia’s Tyre Depots

In Australia, Kmart Tyre and Auto Service is to acquire 90 Shell Autoserv and Auto Care branches for an undisclosed fee. Under the agreement, effective from 20 February, Shell Autoserv and Auto Care sites will be progressively rebranded as Kmart Tyre and Auto Service.

Kmart’s owner, Coles Myer, said all current Shell Auto Care and Shell Autoserv employees will be offered a role with KMart Tyre and Auto Service. Kmart Tyre and Auto Service managing director John Sink said the deal makes his company the largest car servicing business in Australia with over 280 stores, many located next to Coles Express Service Stations.

“We will offer customers a fantastic network across the country, with benefits including consistent car servicing and great value tyre offers across more stores,” Mr Sink said.

Coles Myer has almost 600 Shell petrol outlets across Australia linked to its discount fuel retail network. Shell Autoserv general manager Greg Fisher said the sale of the business was a positive step in strengthening the existing alliance Coles.

Kmart Tyre and Auto Service evolved in 1992 when Kmart Auto, the automotive parts and service department was restructured to create an autonomous division of Kmart. It was subsequently re-named Kmart Tyre & Auto Service. Significant growth followed the restructuring process, with the number of Service Centres increasing from 132 in 1992 to over 175 today.

Kmart Tyre & Auto Service backed its restructuring with investment in service, diagnostic and tyre-servicing equipment, and a reception refurbishment plan, not to mention investment in personnel. The chain sells a range of well known brands like Goodyear, Dunlop, Bridgestone, Castrol and Exide and guarantees low prices for its customers.