Many in the automotive aftermarket have spent the past decade trying to capture more of the commercial market as DIY activity began to fade. That trend however has been turned on its head as of late, as motorists look to pinch every penny. A recent study conducted by Kelton Research for Honeywell confirms that more than half (51 percent) of American vehicle owners are rolling up their sleeves and handling more car care on their own versus a year ago. And an overwhelming majority (89 percent) of these new-found "DIYers" admitted they didn’t really perform these tasks before — they typically hired a professional.
The return of the DIYer bodes well for retailers like Pep Boys, which reported sales of $488.9 million for the quarter ended Aug. 1. This is down from $500 million in the prior year period. Sales for first half were $985.4 million, as compared to $998.1 million for the 26 weeks ended Aug. 2. “We are pleased with our performance for the quarter and year-to-date and remain on-track with our turnaround,” said CEO Mike Odell. “Our service center and commercial businesses show strong revenue growth and our core DIY retail business is stable. The current environment for sales of more discretionary items remains challenging for now.”
Also this week, Pep Boys announced that it had deployed the PrimeRevenue Supply Chain Finance (SCF) platform, which will give Pep Boys’ suppliers on the SCF Platform online visibility into Pep Boys payments that are due to them. The SCF Platform also provides suppliers enhanced on-demand receivables financing through an early payment facility.
In other news from the retail sector, AutoZone announced on Tuesday that the State of Arkansas is the latest state to adopt AutoZone’s Automotive Parts and Supplies contract under the U.S. Communities Group Cooperative Purchasing Alliance. The contract will allow state agencies and local municipalities in the State of Arkansas the opportunity to realize the cost savings provided on all of the products offered under the AutoZone contract. The State of Arkansas will have access to the AutoZone Strategic Partners program that will allow state agencies the opportunity to share best operating practices and product testing results with fleet operating groups from across the country that are similar in size. AutoZone recently launched the "AutoZone: Great Brands, Great Products" initiative as part of the Strategic Partners program for public sector customers.
The final item in our round-up of the week’s top news brings word of a new appointment for Mike Schwab, who was promoted to vice president of NGK Spark Plugs’ (U.S.A.) aftermarket division. Schwab, a 20-year veteran in the aftermarket, has been with NGK since 1989 and previously served as director of sales and marketing for North America. Prior to that, he served as general manager for NGK Spark Plugs (U.S.A.). In his new role, Schwab will oversee sales and marketing functions for NGK’s aftermarket and OES channels.
