OK Tire Announces $100-million Expansion Plan
OK Tire announced on April 3rd that it will be investing $100 million over the next five years to expand its distribution centre capabilities throughout Canada.
This expansion is part of the company’s plan to aggressively grow its market share and keep its position as the country’s largest independent tire and auto service retailer.
“Thanks to our dealers, we are experiencing phenomenal and consistent growth in our network on both the commercial and retail side. We are changing our business model to provide our dealers with everything they require to serve our customers’ automotive needs better,” said Jim Caldwell, President & CEO of OK Tire Stores. “Today’s announcement marks the beginning of a new OK Tire as Canada’s premier tire and auto service company,” he added.
With the expansion of the distribution centres, more that 500,000 sq ft will be added to OK Tire’s network across all regions in Canada in the next three years. The expansion project will kick-off with the construction of the first new distribution centre in central Canada. Further details of the project and the distribution centre locations will be released by the company in the coming months.
“Our objective is to future-proof our business, which is why we are installing state-of- the-art distribution systems at our new facilities. We will be able to carry more products and service our retail locations with an expanded line of tires and automotive products,” said Michael Rutherford, Chief Operating Officer.
Besides being the first major initiative of OK Tire’s five-year growth plan, the distribution centre expansion is also the most significant expansion in the company’s 66-year history.
“We are committed to adding value and profitability to our OK Tire retail stores and the company as a whole,” explained Caldwell. “As we go forward this will include looking at building our network through acquisitions that complement our existing network.”