Goodyear Closing 92 Stores: What Does it Mean to You?

[AutoShopOwner]

I saw this story and it made cringe, it has implications for students, shops and the supply chain.

Also, as a former employee at a Goodyear store (franchise), it make me a little sad.

 

 

Goodyear Exits Underperforming Retail Locations

AKRON, Ohio, August 19, 2008 –In a move to improve the profitability of its U.S. retail operations,The Goodyear Tire & Rubber Company today said it plans to exit 92underperforming locations by the end of the year.

"Following a rigorous review of operating performance and local market dynamics, these
company-owned outlets are not producing acceptable returns," said ScottVogel, vice president, retail operations, North American Tire.

"Taking this action now willallow us to focus our attention on locations with the best long-termpotential," he said. "It will help position Goodyear to be a strongercompetitor."

Vogel said the company is notannouncing the store locations impacted due to its desire to firstcommunicate with their approximately 500 full-time and 100 part-timeassociates as well as property owners of leased facilities.

The action will result inafter-tax charges of approximately $30 million, of which $15 millionwill be recorded in the third quarter of 2008. In addition to thestrategic benefits associated with it, the action is expected toeliminate losses related to these locations of approximately $9 millionannually.

 

 So what does it mean to you?

Students: There will be a lot of ex-Goodyear technicians and tire busters looking for jobs.

Shops: Less competition? Maybe. But, there will be a lot of empty prime retail space looking for buyers or renters. It might be a chance to upgrade your location.

Equipment Manufacturers: Remember when Penske/Kmart closed their locations? There was a glut of used shop equipment on the market. While the number of closing Goodyear stores is not as great, it will still have  an impact on the market.

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