Since its founding in 2004, Southern Honda Powersports has managed to become one of the largest Honda Powersports dealers in the world, all while doing business out of a location just off Rossville Boulevard in Chattanooga, in a low-lying location with no retail visibility. Because the area is in a flood zone, the costs for insurance and storage of thousands of units has been significant. As a result, the dealership had been looking for a new location with better visibility for many years.
The passage of the Border Region Development Act in 2011 drew the eye of the store’s ownership, and they began working on a plan shortly thereafter. Officials with Southern Honda announced this week that it is relocating to 5330 Ringgold Road, in close proximity to other outdoor retailers such as Bass Pro Shop, Camping World, and Top Golf. The new facility will come in at 72,000 square feet and earn Honda’s designation as a ‘Level Five Powerhouse’, allowing the dealership to have their inventory automatically refilled by Honda, thereby significantly improving inventory flow and reducing warehouse storage requirements.
Tim Kelly, owner of Southern Honda, said, “The store has enjoyed huge success in spite of a less than optimal site. The new store’s location will encourage even more customers to visit from throughout the region. This is a winning proposition for everyone and we’re very pleased to see the next chapter of the growth of Southern Honda Powersports. This dealership will be designed specifically and exclusively for Honda Powersports. We’re looking forward to bringing even more joy to Honda customers.”
Southern Honda’s CFO, Phil Harris, noted that the project has been in the works for the last 24 months and the investment in a location so close to the interstate is optimal for regional customers. This step will save the dealership more than $200,000 annually in the costs related to insurance and floorplan interest.
Construction on the site will begin June 2020 and is anticipated to be completed in June 2021.