Top 10 tyre retailers 2023: Halfords closing in on pole position

Kwik Fit and its other ETEL-related brands (Tyre City, Tyre Pros and Central Tyre) have dominated the UK tyre retail landscape for years. More recently, Halfords has made our annual tyre retail ranking a two-horse race. However, Michelin’s ATS Euromaster network remains a significant player and other chains such as the Micheldever- and ultimately Sumitomo-owned Protyre have grown consistently over a long period of time. But none of that tells the whole story. While big chains generate significant levels of value and volume, franchise networks like HiQ and First Stop represent another dimension. And medium-sized chains are often so good at what they do that they end up being bought by larger businesses at a premium. And yet none of that reflects the importance of the vast majority of the market – the independent tyre businesses with one or two centres. That’s why June’s Tyres & Accessories aimed to present a more panoramic view of the undeniably indispensable tyre retail business. Here, T&A presents our annual tyre retail ranking as a way of keeping you informed of the lay of the land in the ever-changing tyre retail landscape.

The biggest changes are all at the top of this year’s UK tyre retail ranking, with the top 10 tyre retailers alone registering a net gain of 78 branches between them. However, there are also signs of growth elsewhere in the top 25. And the answer to the obvious question – “at who’s expense are the growing chains gaining?” – has implications for the wider tyre retail business.

European Tyre Enterprises Ltd (otherwise known as ETEL – the Itochu-owned entity that runs both Kwik-Fit and leading tyre wholesaler Stapleton’s Tyre Services) remains the number one tyre retail operation in the UK. But with its total branch count, down 10 centres since the last time we did this research, and down 72 branches in the last decade, it is clear that a significant amount of right-sizing has taken place.

Company representatives declined to comment on how many of these were Kwik-Fit-branded and how many bore Central Tyres and Tyre Pros livery, but what we do know is that, at the last count, Kwik-Fit called some 650 branches its own.

An official spokesperson pointed out that “in the last 12 months we have moved from some properties at the end of a lease or where sites have been developed for different uses, shifting operations to neighbouring centres”.

But, as well as right-sizing, there is the suggestion of future growth or at least improved performance if not growth in the total number of centres:

“We are continuing to evaluate potential new sites, with a number of openings in the pipeline. In addition, in some locations we are looking to move to better-positioned or newer properties. Although this won’t increase the overall size of the network, it will improve the value of those specific centres.”

Meanwhile, second-placed Halfords Autocentres once again leapt forward, gaining 50 branches since the last count, giving the company a total of 650 branches. If that number sounds familiar, its because it is the same as our best estimate of the number of Kwik-Fit branded branches in the UK. Since Halfords has been growing at the rate it has by virtue of a particular proactive acquisition strategy, this means the acquired businesses are still in various stages of transition between their previous brands and total integration under the Halfords Autocentre umbrella. Otherwise, Halfords would have a very real claim to the number one spot it clearly desires.

Much of Halfords Autocentres’ most recent growth comes from the integration of Lodge Tyres into the Halfords network. Insiders told T&A that, while integration always takes time, the teams are working well together and the trade is strong.

On that note, as we reported last month, in late March 2023 Lodge Tyre’s Manchester operation opened new “bigger and better” premises – an “extensively refurbished” location in Mode Wheel Road South, Salford, Greater Manchester boasting over 7,500 square feet of internal space plus an extensive commercial vehicle servicing area.

Back to Halfords Autocentres’ ongoing tyre retail goals. In January 2023, Halfords reported that it ran 604 garages (trading as Halfords Autocentres, McConechy’s, Universal, National and Iverson) and had access to 234 mobile service vans (trading as Halfords Mobile Expert and Tyres on the Drive). Clearly, Halfords quickly overtook the 600-centre figure we published last year, but the ambition does not end with the current levels of 650. Far from it. According to Halfords’s full-year 2022 annual report, the new target is 800 Autocentres:

“We have achieved our 2019 medium-term target to increase our services footprint to over 1,000 locations [including Halfords general retail stores] and have now set a new target – 800 garages and 500 vans.” Elsewhere the same report speaks of “800+ garages, 300 Halfords Mobile Expert vans and 500 commercial vans” as the new medium-term target.

800 garages would clearly eclipse ETEL. And the latest data suggests the company is well on its way to achieve that goal.

Third-placed ATS Euromaster currently counts 253 branches in its ranks, down one from this point last year. This figure includes the high-profile opening of the new Hull tyre and MOT centre as well as the relocations of branches in Bristol, Sutton-in-Ashfield and Leeds Armley. The total may not be higher than 12 months ago, but this amount of activity demonstrates that development continues at the Michelin-owned tyre retail operation.

Protyre currently resides in fourth position, up 15 centres to a total of 186. Much of this growth comes from the 2022 acquisition of the Selecta Tyre business, which was itself a regular part of our top 25 tyre retail ranking. That growth also fits the long-term trend of consistent growth-by-acquisition that has seen Protyre expand from 46 branches a decade ago to 186 today.

First Stop is currently the fifth largest tyre retail chain with 150 centres in its franchise network. That figure includes 45 ETB branches which are directly owned by Bridgestone, which itself is the originator of the First Stop brand. The 150-brand figure represents a 26-branch increase on the same point last year, which makes First Stop the second-fastest riser in our research – second only to the meteoric rise of Halfords.

First Stop’s expansion plans have been gathering pace ever since retail network manager Mark Widdows took the helm in October 2019. Since then, Widdows has assembled a team of sales and marketing experts to stimulate growth.

While the number is impressive when set against a challenging economic backdrop, he was keen to reiterate his philosophy of quality over quantity, with every new garage acquisition sharing the same common business goals and objectives as the network as a whole.

One headline gain for First Stop is the transition of the former HiQ depot in Wolverhampton, which recently opted to shift to First Stop in a high-profile statement of intent. Meanwhile Williams Garage (Winchester), C&R Tyres (Kelso) and Drivetech Autos (Slough) have also made moves to become First Stop members.

Business Development Consultants Sarah Gardner, Shaun Sweeney, Ryan Cotty and Charlie Harraway have reportedly been integral in supporting existing customers – and attracting new partners, with Brenden Marais was promoted from regional business consultant to national franchise manager UK & Ireland. Meanwhile, marketing manager Nikki McCluney and assistant marketing manager Diana Fernández Tello are said to have “transformed” online sales opportunities through tailored marketing support.

As Mark Widdows commented: “We’re really pleased to boast a network with such quality. My first objective when arriving here was to ensure that each and every partner shared our values, basing every single output around a great customer service. The numbers are strong, but to make the First Stop brand synonymous with genuine quality, we needed to attract the right partners who share our ethos, which we have been doing.

“We aim to give customers a brilliant experience every single day, without fail. We have 150 stores across the UK and it’s vital that each and every one provides a memorable service for all the right reasons. To do this, we are training technicians and supporting centre managers in a variety of ways so they can be the number one source of support for their customers, while our marketing strategies, digital support and access to Bridgestone’s premium tyre range makes us a true, premium player.”

Sixth position is occupied by Formula One Autocentres. Last year the company counted 130 branches in its network and spoke of plans to add six more during the next 12 months. The current total of 135 branches suggests the Formula One team has pretty much achieved its goal.

HiQ is currently the seventh largest tyre retailer in the UK with 105 retail locations in total, down 10 compared with this time last year. HiQ’s 10-branch decline makes it the joint fastest faller on the 2023 table. HiQ shares that dubious honour with ETEL, which also saw its branch count fall by 10. However, since ETEL is between four and five times the size of HiQ, and the same numerical change equates to roughly 10 per cent of HiQ’s current total, the impact on HiQ is significantly greater. The long-term trend in which HiQ is down some 26 branches during the past decade, is also worth noting. HiQ representatives declined to comment.

Eighth-placed The Tyre Group, which is made up of tyre retail brands including Bridge Tyres and Wheels, Discount Tyres, County Tyre, Malvern Tyres, King David Tyres and Auto Tyre and Battery Co., continued its ongoing growth trajectory, up four centres to a total of 73. That’s 30 branches clear of ninth position but also 32 away from 7^th placed HiQ.

In 10th position, Mr Clutch maintained its stable position with a 2023 total of 43 retail locations.