Bridgestone is considering closing a number of its retail outlets in South Africa, Zambia and Eswatini, mainly due to a drop in demand for truck and bus tyres in the region.
According to a company statement, the Japanese multinational has 22 retail outlets in the three countries, and 14 may close. Eleven closures will be in South Africa, affecting 290 employees.
Bridgestone, the world’s largest tyre maker, attributed its decision to a challenging business environment, including decreasing tyre demand, cheaper imports and load-shedding which have made business unsustainable in certain locations.
A company spokesperson said that local demand for truck and bus tyres had fallen by 10% so far this year, compared to last year.
“Our Bridgestone Equity stores have struggled in the face of a shrinking economy, an influx of imported budget products and significant challenges to our operating expenditure such as increases in fuel prices, erratic power supply and the rising cost of rubber,” said the spokesperson.
In 2022 Bridgestone Southern Africa Holdings Group announced it would consolidate its extensive corporate retail operations under one Supa Quick network to maximise its competitive advantage and leading edge, the spokesperson added. However, this has not come about as planned.
“Consequently, we are considering the closure of retail outlets in South Africa, Zambia and Eswatini,” the spokesperson said.
