Torque From The Top – Gary Oliver of Grouptyre

Welcome to the first of a new series of articles, in which leading executives give their insights into matters affecting today’s tyre industry. We begin the series with Gary Oliver; Chairman of Grouptyre, the national network of independent wholesalers.

Grouptyre is a collaboration of leading independent wholesalers (Photo: Grouptyre)

But first, some history: Grouptyre was formed towards the end of 1996, when 10 leading, regional, independent wholesalers came together in an alliance. This provided the best of both worlds, as the companies involved provided same day, or multiple daily, deliveries to their local customers, while together the group had vastly greater buying power. It is difficult to recall just how radical the formation of Grouptyre was, as the companies involved were fiercely independent. Indeed, many doubted that such an alliance could hold together, but it demonstrated its resilience in 2010 when the Group lost three of its members. As a result,  several members came together to form Grouptyre Wholesale, servicing large areas of the South and, commendably, members pulled together to service Grouptyre national accounts and it was a case of “business as usual” as far as customers were concerned. Since then, Grouptyre has gone from strength to strength and their strapline National Service, Local Strength has never been more apt.

Tyres & Accessories: How are you coping with the pandemic? Have you made any radical changes to the way you operate your business day to day?

Gary Oliver: As with many businesses it has been imperative to make changes to the way we work on a day-to-day basis to ensure we can accommodate the requirements of our extensive customer base whilst maintaining the market-leading service we provide and keeping all company staff safe.

In terms of safeguarding employees, Members have been busy ensuring their premises are all COVID-19 safe by adhering to government guidelines and H&S regulations. Logistics and distribution have remained fully operational, so new ways of working have been adapted to mitigate any chances of a super spreader event and to ensure we can maintain continuity of supply. Non-operational staff such as telesales, BDMs, accounts, purchasing employees also have stringent procedures to follow during lockdown where stipulated and to follow Government guidelines. All less essential employees in relation to logistics and distribution have been able to work from home. In terms of the way we help safeguard our customers, all deliveries are made in a COVID-19 safe way, in-line with any customer stipulations.

T&A: Presumably the fact that tyre shops have been permitted to remain open has meant that wholesalers have continued to offer business as usual. Has your business been affected by the fact that more people are staying at home and driving fewer miles?

G.O.: The first lockdown in March 2020 brought about the 6 month MOT extension. However, at the same time the country went into its first real lock-down with only essential businesses remaining open, which effectively brought the country to a standstill for a period of time, resulting in a significant drop of in car tyre replacement sales, although other sectors of the market were not affected. When the first lockdown ended, the business quickly turned back on, although not back to pre-COVID-19 levels as there were still national/regional restrictions in place.

The months following the first lockdown up until early 2021 remained quite positive considering the economic shock with the market volume down by 10 to 20 per cent; some of the reduction being attributed to home working. This resulted in some deliveries reducing slightly during this period; however we have adapted and continued to offer a comprehensive delivery service to customers, as well as our excellent sales support and business development to our retailers during these difficult times.

T&A: How do you see the future – do you think the tyre business will be fundamentally or permanently changed by the events of the past year?

G.O.: It wouldn’t be right to assume that the tyre business will not be subject to some changes in the post-pandemic age and with the technological advances of EV, more business being transacted online and mobile fitting. However, change brings risk and reward and one of Grouptyre’s core strengths is adaptability. Over the past 40 years the market dynamic has changed beyond all recognition, so Grouptyre are prepared for the challenges that lie ahead and will restructure our business model to exploit change. The events over the past year have focused the business to scrutinise itself in all areas which can only be a good thing. However, from a wholesaler point of view the core business supply and demand will not change; it will be the market dynamic that will evolve.

T&A: There is anecdotal evidence that the lockdowns have led to an increase in at-home mobile tyre fitting. Has this had any effect on sales?

Grouptyre boasts national service (Photo: Grouptyre)

G.O.: The mobile fitting concept has been around for many years, but over recent years it has started to become more accessible to the wider market due technological advancements and social acceptance in using the internet. Mobile tyre fitting is the perfect solution for many consumers because of time demands on the average person’s lifestyle and fits perfectly into the buying habits of the online, tech-savvy generation who have been brought up with their iPhone glued to their hand. We supply many of the market leaders in mobile tyre fitting, with this sector definitely on the increase having a positive impact on sales. Our product line-up and availability are second to none, offering a huge range of brands/sizes at all price points so we can meet the needs of these businesses as and when they require tyres for their customers.

T&A: The UK government has made a commitment to phase out sales of new internal combustion engine vehicles by 2030. Electric vehicles require different tyres from ICE vehicles. Are these readily available yet? Are you in discussions with tyre manufacturers about possible future availability?

G.O.: Electric vehicles have been phased into the UK market for many years now so the supply/demand requirements on EV tyres does not differ from any other new fitment landing in the UK. As with all new developments in the automotive industry, we work very closely with OEMs to understand what new sizes are being fitted on the VM production lines, whether these fitments are destined for the UK and if so, secure an initial stock holding to accommodate accidental damage/punctures, then gear up our stock accordingly to satisfy the replacement demand when it comes. We will continue to work closely with the OEMs on forecasting new fitment demand as we have a responsibility, along with the manufacturers, to ensure the replacement market has access to all makes and fitments.

T&A: Many vehicle manufacturers are making great efforts in the field of autonomous vehicles. How do you see these affecting your business in the short to medium term?

G.O.: We don’t see autonomous vehicles having any effect in the short to medium term as it will be many years, if not over a decade, before the autonomous vehicle market has any impact in the UK, in-terms of the concept becoming a trusted, safe reliable mode of domestic transport. The impact on the traditional car replacement volume is unknown and will not be known until autonomous vehicles are available to the masses.

T&A: The changes required by the innovations above will entail new technologies and training for tyre technicians. Are you geared up to cope with this? Can you offer your customers any training or assistance?

G.O.: Grouptyre have an extensive team of Business Development Managers who have a wide range of skills, from general tyre knowledge through to complex training needs, covering sales training all the way through to tyre construction and tyre fitting. To complement this wealth of BDM knowledge centrally we have a team of Regional Sales & Training Managers who all monitor and understand the ever-changing market dynamic. This allows us to always stay ahead of the game, ensuring we are ready to adapt, amend or change any of our existing processes to accommodate change. The knowledge and experience that our sales teams possess and their ability to train staff, understand the developments and technical aspects within the industry is something of which we are extremely proud.

T&A: In the past, regional wholesalers have benefited by offering a ‘just-in-time’ service to customers with frequent deliveries. Has the attitude of customers changed recently, and if so, how?

G.O.: The pandemic has made everyone more focused on the service levels they are receiving as we now have to comply with any COVID-19 safe delivery policies. However, Grouptyre’s service levels to market have always been considered second to none and we have maintained these standards throughout the pandemic. We always try to maintain a fast, responsive delivery offer to our customers delivering twice as standard in most areas, through to offering a rapid response delivery service. The fleet of 455 vans which we have at our disposal and the 40 strategically located warehouses enable us to offer continuity of service whilst maintaining our delivery strategy to our customers. Our customers are extremely loyal and can understand when things go wrong on the very rare occasion.

T&A: Some private brands offer an accidental damage guarantee. How effective is this as a marketing tool?

G.O.: Offering a guarantee with a private brand allows us to give more confidence to the retailer when selling a quality product. Consumers will probably not have heard of most of the private brands in the marketplace. So if the retailer offers this tyre with a guarantee in their price point, this will give consumers reassurance that they are purchasing a quality product, with the added protection that, if there is accidental damage, then they can return to the retailer where it was purchased for a replacement. The consumer then receives an allowance towards the replacement tyre depending on the remaining tread depth of the damaged tyre. The guarantee is just another way in which we are offering that little bit extra to retailers, demonstrating confidence in the products, and giving him a good reason to recommend the tyre.

“Torque from the Top” is a regularly feature in the print edition of Tyres & Accessories magazine. Not a subscriber? No problem, click here to become one.