UK tyre wholesalers ‘struggling’ in a growing market – Plimsoll

Recent Plimsoll Analysis reports that the tyre wholesalers and distributors market is “in a healthy state” and on average sales are increasing at 7.9 per cent. Meanwhile margins are sitting at 2.9 per cent and 21 companies are said to be “struggling for survival."

David Pattison, senior analyst on the project, said: “As seen with the recent closures and administration of big high-street and commercial stores, these organisations were losing ground against the competition. It’s much the same in this market, the overall market is healthy, but some are falling behind.

“Twenty-one companies have seen their sales fall by up to 21 per cent. Over two thirds are losing money and many have seen productivity fall to such an extent that they are becoming increasingly uncompetitive. Historically, these businesses would have been seen as good acquisitions. But today you would need to questions their value and how they would sit in the future market.”