Bridgestone plans to expand it stores to 6000 in USA by 2020
According to the CEO, Bridgestone, Masaki Tsuya, “The Japanese tyre maker Bridgestone, is planning to expand its sales network in the USA by taking the number of its stores to 6,000 by year 2020. The tyre manufacturing giant has taken the step based on the company’s expectations of growing demand in the USA.
Bridgestone already owns around 2,200 stores of its own in the USA. & has around 3,000 dealerships that sell Bridgestone tyres. Bridgestone’s network of close to 5,000 stores including dealerships is already one of the biggest among tyre manufacturers in the USA. However, according to Masaki Tsuya the presence of the brand in on strong enough in many regions. The company in past tried to solve this problem through their attempt to buy off pep boys, a company which operates close to 800 stores across the country. The takeover bid by Bridgestone however, came to a disappointing end with Carl Icahn winning the bidding war for Pep-Boys.
Speaking of the expansion plans of Bridgestone’s sales channel Masaki Tsuya said that, “In addition to opening our own stores, we are also considering increasing contracts with dealerships.”
In October 2015 Bridgestone had an agreement in place to purchase Pep Boys for $15 a share, taking their valuation to USD 840 Million in total before, Icahn made competing offers in December 2015 at higher prices. On Dec. 29, 2015 Bridgestone decided against raising its purchase price beyond Icahn’s bid of USD 18.50 per share proposal. The following day, Icahn & Pep Boys signed a deal.