What the last-mile delivery boom means for Hercules Tires in 2025

It shouldn't be news to anyone that the last-mile delivery segment is going absolutely bananas. Supercharged by the COVID-19 pandemic, online retail isn't slowing down; in fact, according to researchers at Statista, global retail e-commerce sales reached an estimated $5.8 trillion last year. Projections indicate a 39% growth in this figure over the coming years, with expectations to surpass $8 trillion by 2027.

To understand the effect this incomprehensible amount of dollars intends to have on the tire industry, we're sitting down with Marshall Gillespie, director of proprietary brand commercial merchandising at American Tire Distributors (ATD). Gillespie discusses emerging trends in the medium-duty truck tire market, the growing acceptance of value-oriented brands like Hercules Tires and the impact of economic conditions on purchasing decisions. He also shares how fleet owners and operators are more open to exploring new brands to achieve cost savings without sacrificing quality, a shift ATD is capitalizing on as the company expands its portfolio to meet this demand. 

“We’re really leaning into [last-mile delivery] in terms of our product portfolio, our ideas for new product development, and our stocking strategies,” he says. 

Additionally, Gillespie touches on the return of market stability in 2024 after a challenging 2023 and forecasts modest growth for 2025, driven by increased utilization in Class 8 trucks. 

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