Les Schwab Tire Center

When Les Schwab indicated they were expanding into Minnesota, I began spending a lot of time studying smaller regional markets across the state that looked like a good fit for their model.

One market that stood out was Willmar, Minnesota.

While reviewing the retail landscape, I noticed the local Menards had several undeveloped outlots. The site sat within one of the city’s primary retail corridors and had strong visibility and traffic. It immediately looked like a great location for a Les Schwab store.

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So I called Menards. At the time, I had never done a deal with them, and we didn’t have any prior relationship. They also weren’t familiar with Les Schwab Tires.

Their concern wasn’t the use itself. They simply wanted to make sure the operation would match the quality of their center. Specifically, they didn’t want a tire store that looked like a repair yard with old tires or disabled vehicles sitting out front of their store.

To give them comfort, I sent photos of several existing Les Schwab locations so they could see the quality of the buildings and how the sites are maintained. Once they saw the brand and the level of development Les Schwab builds, they were comfortable moving forward.

We began negotiating a deal for one of the outlots.

One unique aspect of working with Menards is what many developers jokingly call their “gift card tax.” The purchase price is increased by 10 percent, and that amount is returned to the buyer in Menard's gift cards. It’s their way of encouraging developers to purchase building materials from their stores.

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Because this project was a ground lease to Les Schwab, I simply passed the gift cards along to them.

With the land secured and the lease completed, Les Schwab opened a new store in one of Willmar’s strongest retail corridors, creating another successful location in their growing Midwest expansion.

J. Clint Jameson, CDP

Managing Partner