Blackcircles.com will power the motoring organisation’s new tyre retail operation, RAC Tyres (accessible at both www.rac.co.uk and www.ractyres.co.uk). The service will enable visitors to order tyres through the website and have them fitted at any of the over 900 garages in the Blackcircles network.
Announcing the news, company representatives described the agreement as a “landmark deal” and pointed out that the move follows a period of sustained growth for Blackcircles.com. According to an interview with the Financial Times published in early April, company founder Mike Welch believes the recession could benefit Blackcircles as customers seek a lower cost tyre alternative.
Blackcircles.com has grown to a turnover of in excess of £10 million since it was launched in 2001. In the earlier report, FT quoted Welch as saying sales were as much as 80%t up year-on-year. While year-on-year sales growth is currently quoted at 60 per cent it remains nonetheless impressive.
According to the April FT interview Blackcircles made turnover of £11 million in 2008 and the company is expecting sales to hit as much as £17 million this year. However, Tyres & Accessories understands that the company has a more cautious official target of between £13 million and £14 million of turnover. As far as market share is concerned, Welch has a clear goal of 10% of the approximately £1.3 billion market. (As an aside, the company’s daughter sites in France, Germany, the Netherlands and Belgium are said to contribute about 10% of overall sales.)
Commenting on the RAC tie-up Mike Welch said: “This deal is a major milestone in the growth of the business and another significant step towards our goal of capturing £100 million of the U.K. tyre market. We share RAC’s commitment to customer service and helping U.K. drivers reduce the cost of running a car. Now more than ever, motorists are being turned off by the over inflated prices of high street tyre retailers. Blackcircles.com offers the best deal in terms of price, choice and service.
Gavin Talbot, RAC senior business manager, added: “The relationship with Blackcircles.com is an exciting new venture for RAC, introducing a compelling new service for our members and all consumers. And, at a time when consumers are increasingly shopping around they can be confident that our new proposition with Blackcircles.com offers a great price combined with a trusted quality service.” (Tyres & Accessories/Staffordshire, U.K.)
