ERJ staff report (TB)
Ladoux, France -- Michelin Group is planning to more than double its retail presence worldwide to 5,000-plus Euromaster- and TyrePlus-brand franchised stores by 2017, including 120 Tyre Plus stores in Mexico and 500 in South America.
Michelin disclosed its ambition during an annual Investor Day gathering at the firm's research and development center in Ladoux.
The plan involves Michelin's Euromaster - active throughout Western Europe - and TyrePlus - active in Eastern Europe, Asia, Africa/Middle East and Latin/South America - franchise concepts, according to the presentation given by Florent Menegaux, director of passenger car/light truck product lines.
Menegaux did not disclose the size of investment Michelin is budgeting for the expansion nor the expected sales volume growth. Michelin is projecting growth to 1,700 stores, up from 628 currently.
Michelin also maintains a company-owned Euromaster network throughout Western Europe, comprising 1,680 service centers in a dozen countries with 10,800 employees and annual sales of about $2.6 billion.
The firm started franchising the Euromaster concept two years ago and now has 628 franchises active. The TyrePlus franchise concept started in 2002 and has grown to 1,385 locations in more than a dozen countries on five continents.
Regionally Michelin is projecting growth in:
- Mexico - 120 stores, up from 50 now;
- South America - 500 stores, up from three;
- Eastern Europe - 220 stores, up from 173;
- China - 1,700 stores, up from 840;
- ASEAN - 600 stores, up from 219;
- Africa/India/Middle East - 400 stores, up from 100.
- Australia - 60 stores.
From Tire Business (A Crain publication)