Major international tyre shop closes doors in South Africa

Blackcircles, which entered South Africa in December 2021, officially ceased operations in the domestic market in September 2024.

Blackcircles was founded in the United Kingdom in 2001 and is billed as the “leading online tyre store” in the country.

Tyre conglomerate Michelin acquired the business in 2015, after which it expanded into several regions including Canada, Egypt, Mexico, Thailand, and, of course, South Africa.

In the local market, it was wholly owned by the nation’s largest tyre manufacturer – Sumitomo Rubber South Africa.

The key selling point of Blackcricles was that it offered a “technologically advanced platform for all local tyre manufacturers to bridge into the digital marketplace.”

In layman’s terms, it allowed consumers to complete much of the shopping experience online, including browsing and purchasing tyres, as well as selecting a location and date at which the tyres would be installed.

They would then only have to drive to the fitment centre to get their new rubbers, with the hassles of tyre selection and payment already sorted.

“With 80% of South Africans living or working within a 15-minute drive of a Blackcircles.co.za fitting centre, it is convenience at its best,” the company said when it announced its domestic launch.

It also provided easily accessible consumer reviews and advice from a team of online tyre experts.

Today, however, when you navigate to the Blackcircles South Africa website, you’re greeted with a sombre message reading: “We are sad to announce that Blackcircles South Africa is ceasing operations from 30th September 2024. It has been our privilege to serve you over the years, and we are immensely grateful for your trust and support.”

A successful first year

The demise of Blackcircles is puzzling given that the company reported a “successful first year” of business in South Africa at the start of 2023, purportedly establishing itself as “the leading online tyre retailer in South Africa.”

“Blackcircles.co.za is modelled around the successes of Blackcircles.com, which was founded more than 20 years ago as one of the world’s first online tyre retailers. With Blackcircles.co.za, we were able to quickly set up systems and processes to allow for a seamless customer experience, from research to fitment,” the company said.

“In the first year, tyre sales via the platform saw consistent growth month on month and we overachieved against preliminary targets.”

At the time, over 200 tyre dealerships from around the nation were listed as Fitment Partners on the website and utilised an appointment booking system through Blackcircles.

“We have grown our fitment partner base by 400% since launch and continue to endeavour to reach every corner of South Africa,” said Blackcircles.

“We have also increased the number of brands, profiles, and specific products available to customers, ensuring we are able to meet the needs of every customer.”

The company vowed to grow its market share over the course of 2023 through continued investment in technology aimed at improving the user experience and providing fast, efficient delivery options.

“With exciting enhancements and launches planned, we are confident of a successful year ahead,” the company said in February 2023.

Despite these big ambitions and apparent success, Blackcircles closed up shop just under two years later.

Sumitomo’s Dunlop Tyres plant in Ladysmith

TopAuto reached out to parent company Sumitomo Rubber South Africa to find out more about the shutdown of Blackcircles, considering it seemed to be meeting its goals.

Devlin Moodley, general manager of Blackcircles, kindly responded, saying the company did not take the decision to close down lightly.

“There were various factors that impacted this decision, including the current market conditions,” said Moodley.

He did not elaborate on what these conditions could be. Considering the novelty of the business model in the South African landscape, it would also be difficult to make accurate assumptions.

Like vehicle manufacturers, an unfavourable exchange rate could have been eating into profitability. Alternatively, a rise in Chinese tyre imports may have pulled consumers away from the more well-established brands Blackcircles partnered with.

Or, the local market might be oversaturated with tyre merchants at the moment, rendering it very difficult to gain a foothold and grow a name for yourself. The possibilities are many.

Moodley did, however, divulge that a big challenge for Blackcircles at the beginning was ensuring visibility in the e-commerce space, but that it was “able to find solutions to these challenges by focusing on our guiding principle of ensuring customer satisfaction.”

Blackcircles may be down, but at least it’s not out, as a return to the country isn’t completely out of the question.

“We still believe e-commerce has an important role to play in the South African tyre market and have taken on board valuable insights and learnings through this experience,” said Moodley.

“The opportunity remains for Blackcircles to return to South Africa.”