Wal-Mart Stores, Inc. Expands Sales of Goodyear Tires

5 August 1998
Wal-Mart Stores, Inc. Expands Sales of Goodyear Tires
    AKRON, Ohio, Aug. 5 -- The Goodyear Tire & Rubber Company
announced today that mega retailer Wal-Mart Stores, Inc. has
chosen to make Goodyear-branded tires available to consumers through its
various retail formats.
    Shipments of selected Goodyear lines began this month, and will be
available at the retailer's 439 Sam's Club outlets that sell tires.  It is an
extension of the growing business previously provided to Wal-Mart's Tire &
Lube Express outlets.
    "As a system-wide supplier to Wal-Mart, there is tremendous potential,"
said Marco Molinari, vice president of sales and marketing.  "Studies of tire
take-offs at Sam's Club indicated that approximately 1.5 million Goodyear-
branded tires -- many coming as original equipment on new vehicles -- were
being replaced annually at those outlets with other brands.  These tires now
have a good chance to be replaced with new Goodyear tires -- something that
couldn't happen unless Goodyear tires are sold in this separate distribution
channel.
    "This is a decision that should help us in meeting our growth objective of
twice the industry rate, and make us a stronger supplier to all Goodyear
retailers," Molinari added.
    "We expect our business with Sam's Club to grow at the same rate we
achieved with Wal-Mart where we have earned more than two-thirds of their tire
business.  This, of course, would mean millions of additional tires in the
first year at Sam's Club alone," Molinari said.  "This decision by Wal-Mart
Stores, Inc. is a credit to the outstanding work that's been done by our
entire Wal-Mart team."
    In late May, Wal-Mart Stores, Inc. announced plans to consolidate the tire
management functions of its two divisions -- Wal-Mart Tire & Lube Express and
Sam's Club warehouses.  For the past four years, Goodyear has been supplying a
variety of Goodyear-branded and non Goodyear-branded tires to the Tire & Lube
Express outlets.