HOUSTON New research from The NPD Group shows that auto parts sales vary widely from market to market and reflect the economic conditions of a particular geographic area. NPD said it found a correlation between auto parts sales and housing prices in particular regions.
NPD’s Automotive Store Level Tracking, which tracks point-of-sale (POS) store level information collected from nine major auto parts retailers, found that of the 50 designated market areas (DMAs) it covers, the markets showing the slowest growth in auto parts sales were also areas in which housing prices have depreciated; and conversely, the markets with robust sales are areas where housing has appreciated.
Four of the five markets with the slowest auto parts sales are in Florida Orlando, Tampa-St. Petersburg, Miami-Ft. Lauderdale and West Palm Beach where housing prices have depreciated by 8.1 percent between 2007 and 2008, according to the Office of Federal Housing Enterprise House Price Index (HPI).
Three Texas markets Houston, Austin and San Antonio are among the list of DMAs having the highest auto parts retail dollar volume. Texas housing prices appreciated by 4.7 percent and the state ranks 4th among all states in price appreciation (HPI).
Top Five Growth Markets (Among 50 Available DMAs): Auto Parts Retail Dollar Volume (12 Months ending April 2008)
1. Minneapolis-St. Paul
4. Salt Lake City
5. San Antonio
Top Five Lowest Performing Markets (Among 50 Available DMAs): Auto Parts Retail Dollar Volume (12 Months ending April 2008)
1. New Orleans
3. Tampa-St. Petersburg
4. Miami-Ft. Lauderdale
5. West Palm Beach
“The economy is often addressed on a national level, but the reality is that there is a great deal of variation across markets,” said David Portalatin, director of industry analysis for NPD Group’s automotive division. “The auto parts retail channel seems to be growing nicely in some parts of the country while exhibiting the effects of economic slowdown in others. It’s important for businesses to identify which local markets are strong and growing and which markets are struggling, figure out why, and then develop strategies that correspond to specific market conditions.”
For more information about NPD, visit: http://www.npd.com.