Point S USA, K&M Announce Strategic Partnership in Denver, CO

Point S USA, K&M Announce Strategic Partnership in Denver, CO

Point S says the collaboration will allow the company to enhance its distribution model in the area.

K&M Tire, Inc. and Point S USA have entered into a new partnership in Denver, Colorado. K&M Tire will be acquiring and taking over Point S USA’s Denver operations, including its 41,000-square-foot warehouse; will be servicing Point S members as its primary distributor; and will be retaining all of the Point S Tire employees in the market. Point S USA will use K&M Tire, Inc. as its primary source of tires in the Colorado markets.

Point S says this collaboration marks a significant milestone in the business’s mission to enhance its distribution model, providing its members with consistent access to products and services while maintaining control of its capital. Point S adds that K&M Tire receives a running start in its expansion into Colorado with a strong foothold in Denver.

“This partnership is a great way to connect the independent tire dealers of Point S with our strong footprint of distribution centers in the Midwest, Central, Southwest and Northeastern portions of the US while allowing us to continue to expand westward to service our growing needs for regional distribution in Colorado, Nebraska and Kansas,” says Cheryl Gossard, president of K&M Tire. “We’re very excited about taking on our newest customers in Denver and showing them our exemplary distribution and competitive capabilities. It also positions us well as a partner for future Point S stores with their ambitions to grow nationwide.”

“Our partnership with K&M Tire is a strategic move that will enhance our focus on our member-first model,” Walter Lybeck, CEO of Point S USA, added. “It enables us to leverage an outside wholesale entity with common family values, granting our Members access to strategically placed distribution locations that complement our existing warehouses. By joining forces with K&M Tire, we can maximize our distribution capabilities, creating a more cost-effective and efficient solution for our members currently being served out of Denver.”

Point S says the story behind this partnership began with its intention to optimize its Memphis Distribution Center. This facility was strategically placed to serve a substantial network of dealers and was opened in 2022. The 120,000-square-foot warehouse links to the company’s overall distribution network, serving Point S retail stores across 32 states. The Memphis DC is also much better positioned to service some of their larger dealers, previously served out of Denver, Point S says.

The partnership between Point S USA and K&M Tire, Inc. will close along with the asset purchase agreement for Point S USA’s Denver assets on Dec. 2, 2023.

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