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eTyres PRESS RELEASE.
Unrestricted distribution if attributed © 2008 etyres.co.uk
Reaction to Plimsoll Tyres Industry Report
22 Sept 2008 – New industry report by leading business analysts, Plimsoll, indicates that the UK tyre retail industry is heading into difficult trading conditions. Their third annual report into the industry indicates that over 75% of the top 200 UK retailers of tyres will have to reduce staff to remain solvent in the coming months. The report identifies an annual sales per employee level of £177,000 as the minimum that is sustainable. It states that one of the largest companies will need to shed 614 jobs to remain in the black.
Plimsoll state that their research shows that 17% of the 200 strong group are already losing money.
The report underscores the strength of etyres' on-line tyres business model which, being highly automated, keeps staff numbers and, consequently, wage costs, to a minimum. Plimsoll report states that the small profitable group of leading UK retailers of tyres have an annual sales per employee level of £227,000. By keeping overheads, including staff numbers, to a minimum etyres 2008 budget has sales of car tyres of over £1m per employee. This enables etyres to sell tyres to the public at prices that are far lower than traditional tyre depots.
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