by Brian Cruickshank, AAP
Editor, Counterman
Like 2004, 2005 was another year of notable growth for some of the largest store groups in the U.S.
Much of this growth stemmed from acquisitions of other large store groups, and because of this, three top-20 store groups are absent from this year’s Super Stores: Murray’s (acquired by CSK), Midwest Auto Parts Distributors (acquired by O’Reilly Auto Parts) and Autopart International (acquired by Advance Auto Parts).
Just about every company on our annual list grew their store counts. In fact, some enjoyed significant growth, with four companies growing their respective store counts by more than 10 percent: Parts Depot, —which grew its store count by an impressive 31 percent — followed by O’Reilly, Auto-Wares and CSK.
FOUR-YEAR PERSPECTIVE
Here are the total number of stores represented by the top 20 store chains over the last four years.
• 2003: 11,823
• 2004: 12,339 (+4.3%)
• 2005: 12,964 (+5%)
• 2006: 13,496 (+4.1%)
AUTOZONE: UNDER NEW LEADERSHIP
When Steve Odland left his position as president of the largest auto parts retailer in the U.S., he left big shoes to fill. If anything, Odland’s tenure was one of growth, both from a store count and a financial standpoint, with AutoZone stock tripling during his leadership. Whether the company continues its laudable growth rests on the capable shoulders of the company’s relatively new president, longtime AutoZoner Bill Rhodes.
On the store growth side, AutoZone opened 193 stores in 2005 and added a new distribution center. As for sales growth, there have been challenges. The company notes that sales growth has come as a result of new store openings, not from comp store sales, which fell 2 percent. Retail DIY sales increased 1.4 percent and commercial sales decreased 3 percent over the previous year.
Despite these challenges, AutoZone continues to invest in its current stores and training, as well as repositioning its AZ Commercial division to grab more installer business.
ADVANCE AUTO PARTS: ACQUIRES AUTOPART INTERNATIONAL
In mid-September, Advance Auto Parts made the surprising announcement that it had acquired Sharon, PA-based Autopart International (AI). AI provides replacement automotive parts to a segment of the market Advance, like rival AutoZone, very much desires to grow: the do-it-for-me commercial market.
Privately held, AI’s 61 auto parts stores throughout New England and New York complement Advance’s growing presence in the Northeast. Including the 61 stores acquired in this transaction, Advance’s store count grew to 2,829, and increased its expected yearly store count by a significant margin.
“The commercial market represents an excellent growth opportunity for Advance,” said Jim Wade, Advance’s executive vice president, business development, at the time of the AI announcement. “The acquisition of AI augments Advance’s share of the still highly fragmented commercial market.”
In addition to acquiring stores such as AI and another New England store chain, Lappen Auto Parts, Advance continued its impressive education programs. In-store clinics streaming from “Advance TV” walk customers through many routine repair and maintenance procedures. Last month, the company announced that its online consumer education initiative, “Advance Know-How,” is now under a newly branded consumer education section of its Web site. The new section educates vehicle owners through hundreds of pages of new print and video on a wide variety of topics, including how to save gas, safe driving habits and step-by-step instructions on how to fix and maintain vehicles. The new site’s “How-To Video Clinics” section contains streaming video from Advance TV, as well as 15 how-to video clinics that teach drivers how to prepare their vehicles for winter, increase fuel mileage or focus on other maintenance and repair projects.
For more information on the company and its plans for the future, you can read an exclusive interview with Advance CEO Michael Coppola, which begins on page 41.
O’REILLY AUTO PARTS: CONTINUES IMPRESSIVE GROWTH
O’Reilly’s impressive growth strategy continued in 2005 with the May acquisition of privately held Midwest Auto Parts. Midwest was the 16th largest store group in the country prior to its acquisition. Midwest added an additional 71 stores to O’Reilly’s growing footprint.
Midwest operated stores in Minnesota, Montana, South Dakota, Wisconsin and Wyoming, receiving deliveries from its distribution centers in St. Paul, MN, and Billings, MT.
In addition to the Midwest acquisition, O’Reilly said it would continue to add stores in 2005, and the company did just that, adding another 79 stores, bringing its total to 1,450.
PEP BOYS: REMODELING STORES
Although Pep Boys closed two stores in 2005, it continued to remodel and revamp its existing stores, adding a new look and products. In mid-2005, the company unveiled newly remodeled stores in several key markets. The stores, which have undergone significant internal and external transformations, tangibly demonstrated Pep Boys’ desire to revitalize its inventory.
These re-openings reflect stores that focus sharply on providing customers with a wide range of basic automotive parts, accessories and tires. In addition, each store has been extensively re-merchandised and stocked with new products — some of them decidedly unconventional — ranging from tools and ATVs to generators, mobile entertainment and repair equipment. An ultramodern interior design, which reflects the new red, white and blue Pep Boys corporate colors, includes multimedia displays, dynamic signage and customized areas for new product categories. The store fa
