Los Angeles, Calif.-based Wholesale Tire Distributors (WTD) has ambitious plans to expand beyond its current distribution footprint.
The company’s consolidation of three warehouses in southern California into one distribution center last year was a significant step.
WTD’s 300,000-square-foot distribution center in Pomona, Calif., which opened in June 2023, is now fully operational, says Vahe Tchaghlassian, WTD’s vice president of operations and marketing and co-owner of the company with his father and WTD founder, Ara Tchaghlassian.
The facility “has scaled our ability to supply our current customer demands significantly,” says Vahe, adding that “it’s much easier to be under one roof.”
The Pomona warehouse is WTD’s third distribution center. The company also has warehouses in Calloway County, Ky., and Latrobe, Pa., both of which carry a substantial amount of units.
"The benefit of having the Pennsylvania and Kentucky warehouse comes in when customers can't wait for containers to come in from the factory.
"They can place fill-in orders," which are delivered by truck. "It's all geared toward enhancing our service and making our brands easily accessible."
More tires, more options
In addition to investing in distribution, WTD has been consistently adding new products, sizes and applications to its proprietary Arroyo and American Roadstar lines.
Last summer, WTD officials told MTD that the Arroyo line will expand to eventually encompass more than 300 SKUs.
New products include an Arroyo run-flat tire and an electric vehicle (EV) product, also under the Arroyo brand, that will be available in mid-2024.
"Arroyo’s run-flat is designed to provide enhanced safety and peace of mind," ensuring that drivers can "continue their journey even after experiencing a puncture or loss of (air) pressure."
Arroyo's coming EV tire offering will deliver "outstanding performance and durability,” said WTD officials.
Vahe says WTD sees a lot of potential in the EV tire segment. “With an increasing percentage of consumers purchasing EVs, this opens an opportunity to provide a high-quality, high-value, EV-focused tire.”
WTD also has added 19-, 20-, 21- and 22-inch sizes to its Arroyo passenger tire line.
And the company reports it has made "impactful strides, catering to the heavy-duty commercial vehicle segment."
WTD's ongoing expansion of its Arroyo TBR lineup "ensures that WTD customers have access to a wide range of sizes, catering to various vehicle types and preferences."
“A lot of people are asking for TBR tires,” says Vahe. “That market is not as saturated as passenger tires.”
WTD plans to roll out a new brand, American Hawk, in 2024, which will include TBR products, as well as passenger and light truck tires, for a full line.
According to Vahe, WTD has invested more than $15 million in tire design and mold development.
“Our tread patterns are our own designs. Everything is our own design.”
Combined sales of American Roadstar and Arroyo tires were projected to reach $200 million by the end of 2023.
Continued investment
“WTD envisions substantial growth in the upcoming years,” says Vahe.
“We are committed to introducing more high-quality private label brands, which will be distributed not only across our existing warehouses, but also (through) future locations.”
The company, he explains, also will continue to expand its distribution.
“We’re thinking of opening another warehouse” to maintain WTD’s inventory, which currently totals around 500,000 units.
“Our multiple, U.S.-based warehouses allow the customer to have additional inventory at their fingertips. Ensuring the success of our customers is our top priority.”
