AMB0103_018,20,22 Auto Chain

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18 Aftermarket Business January 2003 www.aftermarketbusiness.com 1 Autozone Inc. AutoZone became the darling of
Wall Street in 2002, appealing so
much to investors and analysts
that Steve Odland got the chance
Dec. 12 to ring the closing bell on
the New York Stock Exchange. The
chains sales eclipsed the $5-bil-
lion mark, generated from a whop-
ping $258 in sales per square foot. (If youre counting, thats a sales
increase of nearly $1 billion in two
years.) The Zone also continued to
expand AZ Commercial (its whole-
sale program), which reported
more than $530 million in sales
during the last fiscal year. The
chain added just over 100 new
stores in 2002. 123 S. Front St.
Memphis, TN 38103
901-495-6500 Fax: 901-495-8300 Website: www.autozone.com CEO/President: Steve Odland Program Group Affiliation: None Stores: 3,098 (U.S.); 40 (Mexico) Employees: 40,000+ Retail: 90% Commercial: 10% Sales: $4.82 billion (fy ending 8/25/01)
$5.3 billion
(fy ending 8/31/02) General Parts Inc./CARQUEST The success of the nations third
largest chain and largest CAR-
QUEST member is no fluke. The
company has grown steadily over
the years and continued to do so
in 2002, picking up several small-
er players and building on the pro-
grams past achievements. It also
helps to have veterans at the helm, such as Vice Chairman Joe
Owen, who was named the 2002
AWDA Automotive Leader of the
Year. 2635 E. Millbrook Road
Raleigh, NC 27604
919-573-3000 Fax: 919-573-5151 Website: N/A CEO: O. Temple Sloan, Jr. President: Temple Sloan III Program Group Affiliation:
CARQUEST Stores: 1,232 Employees: 12,000 Retail: 15% Commercial: 85% Sales: Wont disclose sales figures. Advance Auto Parts Advance got the chance last year
to fill in its coverage area, picking
up 57 Trak Auto Corp. stores in
Virginia, Washington, D.C. and
Maryland. Trak filed bankruptcy in
2001 and a judge awarded
Advance the stores during court
hearings. As of Oct. 5, Advance
had converted 22 of the outlets. Last year Advance also spent a lot
of time converting stores it
acquired from Discount Auto. For
now the plan is to co-brand the
Florida locations to benefit from
Discounts name recognition in
the state. For more on Advance,
see our extensive coverage of the
chain in last months issue. 5673 Airport Road
Roanoke, VA 24012
540-362-4911 Fax: 540-342-2812 Website: www.advance-auto.com CEO: Larry P. Castellani President/CFO: Jim Wade Program Group Affiliation: None Stores: 2,393 Employees: 32,000 Retail: 85% Commercial: 15% Sales: $2.5 billion (2001) $2.6 billion (40 weeks
ending 10/5/02) 2 3 T he survey we send out for our
annual list of the Top 50 parts dis-
tributors always reveals a great
deal about our industry. Weve read about, and written about, the nations
economic woes in the past year and many
argue this bodes well for our industry. As
the theory goes, a tighter economy causes
consumers to repair what they own rather
than purchase new vehicles. However, a
couple common problems noted in our
completed surveys challenge this line
of thinking. The consensus among respondents is that past due accounts are on the rise and service
dealer customers are struggling, and often
failing, to stay in business. Yes, we witnessed
a fair share of comments stating that business
was good, primarily because we are con-
centrating on out-servicing the competition,
as one distributor wrote. But if the nations
economy struggles and customers cant pay
their bills, how will the aftermarket succeed
in 2003? Last year brought about even more con- solidations among the nations automotive
parts distributors. Bankruptcy filed in 2001
brought an end to Restoration Auto Parts
(Trak and Forest City), which last year ranked
12th on our list. Companies like Auto Parts
Express (Big A) and A1 Automotive of Massachusetts, were gobbled up by larger
competitors. And numerous independents fell
by the wayside, although many of those job-
bers sold their businesses to larger players. Fred Bunting of Auto-Wares, said much of his companys growth in 2002 came from
independent jobber acquisitions. Bunting
thought it better to acquire businesses rather
than lose those outlets as customers. His chain
jumped from 18th on our list with 68 stores
last year, to 15th with 90 locations in 2003. Across the board it seemed few distribu- tors were interested in leveraging what they
had for the sake of quick expansion.
Maintaining the status quo, focusing on
improving inventory management and boost-
ing comparable store sales was the strategy
most employed throughout the year. Several
of the largest players prone to fast growth,
such as AutoZone and Advance, trimmed
unprofitable locations and actually saw their
store counts dip slightly. Note, however, that
the sales figures for those two retail giants
climbed despite the store count drops. The sales growth of these larger players, and successes revealed by smaller chains,
shows there is money to be made in 2003.
With that in mind, we did a little digging for
you to get 2003 started on the right foot. In
next months issue, be sure to check out our
Service Chain Report. And good luck! The Auto Chain Report Our Top 10 didnt change,
but the nations economy did its
part in shaking up distribution
channels in 2002. The Auto Chain Report 9 Replacement Parts Inc. (Crow-Burlingame Co.) Restoration spent a lot of time in
2002 improving upon its inventory
control, upgrading its computer
systems and increasing its techni-
cal training for counter sales and
customers. The chain also closed
some unprofitable locations, drop-
ping its total store count slightly
from the previous year. The bulk of the chains locations can be
found in its home state of
Arkansas, where 54 locations are
present. Replacement also oper-
ates five DCs, including one in
Little Rock focused on heavy duty. 1901 East Roosevelt
Little Rock, AR 72206
501-372-5275 Fax: 501-374-7929
Website: www.btbautoparts.com President/CEO: Fletcher Lord, Jr. Program Group Affiliation:
Aftermarket Auto Parts Alliance Stores: 129 Employees: 1,175 Retail: 25-30%
Commercial: 70-75% Sales: $80 million (2000) $130 million (2001) CSK Auto Corporation 2001 was a difficult year for CSK
Auto, which shuttered 36 stores
and cut 120 corporate jobs in an
effort to boost profits. The moves
are expected to reduce operating
expenses by $16.5 million this
year. CSK announced a slow down
in expansion midway through
2001 and focused harder on comp-store growth. The company
also conducted a review of its
slower-moving SKUs and devel-
oped a plan to eliminate certain
items or transfer them to stores
where they are turning appropri-
ately. Well keep an eye on these
moves to see if they result in
greater profits. 645 E. Missouri Ave., Suite 400
Phoenix, AZ 85012
602-265-9200 Fax: 602-631-7479 Website: www.cskauto.com Chairman/CEO: Maynard Jenkins President/COO: Martin Fraser Program Group Affiliation: None Stores: 1,111 Employees: 14,000+ (full-/part-time) Retail: 82% Commercial: 18% Sales: $1.45 billion (2001) $1.16 billion (39 weeks
ending 11/3/02) Middle Atlantic Warehouse Distributor (MAWDI) MAWDI is part owner in the ven-
ture Internet Autoparts, Inc., and
is the largest member of IAPA.
IAPA was founded in 1986 repre-
senting 14 independently-owned
distribution companies with more
than 100 warehouses in 45 States
and Canada. MAWDI operates 30
warehouse distribution centers and supports over 1,500 indepen-
dent jobbers. The company
spends a great amount of time
focusing on its service dealer cus-
tomers and pushing IAPAs
Automotive Service Professionals
programs as a method of enhanc-
ing their partnerships. 601 Vickers St.
Tonawanda, NY 14150
716-694-0200 Fax: 716-694-0796
Website: www.mawdi.com CEO: Clay E. Buzzard President: Jim Buzzard Program Group Affiliation: IAPA Stores: 125 Employees: Unavailable Retail: 20% Commercial: 80% Sales: $460 million (2001 est.) $475 million (2002 est.) Genuine Parts/NAPA Genuine Parts expected to open
roughly 50 stores in 2002. That
number climbed to roughly 90,
which put a bit of a burden on the
companies bottom line. The
Automotive Group posted a 9.1
percent profit margin for the first
nine months of 2002, slightly
lower than last year as a result of increases in salaries, insurance,
and other expenses associated
with the additional company-
owned stores. But dont get us
wrong, the chain is healthy, grow-
ing and continues to be one of the
nations textbook distributors. 2999 Circle 75 Pkwy.
Atlanta, GA 30339
770-953-1700 Fax: 770-956-2211 Website: www.genpt.com CEO: Larry Prince CFO: Jerry Nix Program Group Affiliation: NAPA Stores: 930 Employees: 33,000 (all of GPC) Retail: 40% Commercial: 60% *Sales: $4.3 billion (2001) $3.3 billion (first nine months
of 2002) *Sales figures are only for the
Automotive Group. The Pep Boys Manny, Moe & Jack In the third quarter of fiscal 2000,
Pep reviewed its field, distribution
and Store Support Center infras-
tructure and the performance of
each of its stores. As a result, the
company implemented a number
of changes that have improved its
performance. The chain has made
several changes, including the closure of 38 under-performing
stores and two distribution cen-
ters and reductions in store oper-
ating hours. As of Nov. 2, 2002,
Pep had disposed of 20 of the
closed stores, two DCs and two
development parcels. The compa-
ny also recently announced the
2003 retirement of its CEO. 3111 W. Allegheny Ave.
Philadelphia, PA 19132
215-430-9000 Fax: 215-430-4067 Website: www.pepboys.com President/CEO: Mitchell G. Leibovitz Program Group Affiliation: None Stores: 629 Employees: 23,000+ Retail: 44% Commercial: 18% Tire, Labor & Installation: 38% Sales: $2.1 billion (2001) $1.7 billion (first 39 weeks
ending 11/2/02) OReilly Auto Parts Late last year we learned that
OReilly Auto Parts was acquiring
Dick Smith Enterprises and Davie
Automotive. Dick Smith was a
strong wholesaler for 30 years
operating 10 stores in the
Dallas/Ft. Worth area.
Headquartered in Mocksville,
N.C., Davie operated 17 stores and one distribution center in the
Raleigh/Mocksville area. The
acquisition of Davie will open up a
new market for O'Reilly. These
acquisitions will inch the chain
even closer to the 1,000-store
threshold. Dont be surprised if
OReilly continues its habit of slow
steady growth in 2003. 233 S. Patterson
Springfield, MO 65802
417-874-7161 Fax: 417-874-7168 Website: www.oreillyauto.com CEO: David E. OReilly Co-Presidents: Ted Wise and
Greg Henslee Program Group Affiliation:
Aftermarket Auto Parts Alliance Stores: 980 Employees: 14,500 Retail: 55% Commercial: 45% Sales: $1.1 billion (2001) $998.2 million (first nine
months of 2002) Fisher Auto Parts Fisher Auto Parts has catered to
both the installer and do-it-your-
self customer since 1929. The
chain distributor offers installer
training and maintains an exten-
sive employee-training program
related to counter operation, sales
and products. Fisher also has
focused on getting installer cus- tomers linked electronically to the
chains inventory system. The
Installer Business Management
System offers installers electronic
parts ordering, point-of-sale infor-
mation, business management
operations and an electronic parts
and labor guide. And its being
offered free to those who qualify. P.O. Box 2246
Staunton, VA 24402
540-885-8901 Fax: 540-885-1808 Website: www.fisherautoparts.com CEO: Art Fisher President: Bo Fisher Program Group Affiliation:
Federated Stores: 254 Employees: 2,000 Retail: 25% Commercial: 75% Sales: $250 million (2002 est.) 10 4 5 7 6 8 20 Aftermarket Business January 2003 www.aftermarketbusiness.com 11 12 13 14 15 16 17 18 19 20 20 22 23 24 24 24 27 27 29 29 31 31 33 34 35 36 36 36 39 40 40 40 40 44 44 44 44 48 49 49 Company Stores Retail (%) Annual Sales CEO/President Address Phone Program Strauss Frank (Strafco Inc.) 121 30/70 $100 million David Straus P.O. Box 600, San Antonio, TX 78292 210-226-0101 CARQUEST BWP Distributors 105 85/15 $89.3 million Neil Stockel 215 Business Park Drive, Armonk, NY 10504 914-765-8500 CARQUEST Strauss Discount Auto (R&S) 95 05/95 Unavailable Joe Catalano 9A Brick Plant Road, South River, NJ 08882 732-651-3104 None Murrays Discount Auto Stores 91 05/95 $220 million Michael Klein 8080 Haggerty Road, Belleville, MI 48111 734-957-8080 None Auto Wares/Packerland 90 70/30 $170 million Fred Bunting 440 Kirtland S.W. St., Grand Rapids, MI 49507 616-243-2125 Aftermarket Auto Parts Alliance Parts Depot Co. 88 70/30 $194 million Rollie Olson 2177 Dale Ave. S.E., Roanoke, VA 24013 540-345-1001 Aftermarket Auto Parts Alliance Hahn Automotive Warehouse 80 83/17 Unavailable Eli N. Futerman 415 W. Main St., Rochester, NY 14608 585-235-1595 Aftermarket Auto Parts Alliance Automotive Parts Headquarters 58 80/20 $53 million John P. Bartlett Jr. 125 29th Ave. South, St. Cloud, MN 56301 320-252-5411 Aftermarket Auto Parts Alliance KOI Warehouse 57 80/20 Unavailable David Wesselman 2701 Spring Grove Ave., Cincinnati, OH 45225 513-357-2427 Federated Auto Parts Wholesale (Southern) 56 72/28 $70 million Don McMurtrey P.O. Box 3289, Bakersfield, CA 93385 661-322-5011 CARQUEST Midwest Auto Parts (Champion) 56 59/41 $85 million Herb Lohse 2565 Kasota Ave., St. Paul, MN 55108 651-644-6448 Aftermarket Auto Parts Alliance Autopart International 55 92/08 $75 million Roger Patkin 1205 U.S. Route 1, Sharon, MA 02067 781-784-1111 None Tire Warehouse Central 52 10/90 $54 million Robert Dabrowski 492 Main St., Keene, NH 03431 603-352-4478 Tire Alliance Groupe Arnold Motor Supply (Merrill) 48 75/25 $40 million Dennis Spooner 601 First Ave. S.W., Spencer, IA 51301 712-262-1141 Aftermarket Auto Parts Alliance The Parts Plus Group 48 90/10 Unavailable Nancy Roth 20 River Road, Bogota, NJ 07603 201-487-7007 Parts Plus VIP Discount Auto Center 48 20/80 $93 million John P. Quirk 12 Lexington St., Lewiston, ME 04240 207-784-5423 RPM Group Brooks Auto Parts 38 65/35 Unavailable Don Brooks 402 S. Peterson Ave., Douglas, GA 31533 912-384-7818 NAPA Sturdevants/SAE Warehouse 38 80/20 $43 million Jack Sturdevant P.O. Box 91210, Sioux Falls, SD 57109 605-362-6970 Pronto Automotive Supply Assoc. (Sanel) 34 90/10 Unavailable George Segal P.O. Box 1254, Concord, NH 03302 603-225-4000 Parts Plus Tropical International Corp. 34 N/A $70 million Jose A. Garcia 3510 N.W. 60th St., Miami, FL 33142 305-633-7575 IAPA Bennys 30 0/100 Unavailable Malcolm C. Bromberg 340 Waterman Ave., Esmond, RI 02917 401-231-1000 None WM Automotive 30 45/55 $16 million Mike McElroy 208 Penland, Ft. Worth, TX 76111 817-834-5559 Parts Plus Bond Auto Parts 29 53/47 $31 million Bill Bond 272 Morrison Road, Barre, VT 05641 802-479-0571 Aftermarket Auto Parts Alliance Pat Young Service Co. 28 70/30 $17 million Duke Young 1550 W. 25th St., Cleveland, OH 44113 216-861-1550 Federated Hutchins Automotive Supply 25 60/40 Unavailable John Hutchins 7500 Porter Road, Niagara Falls, NY 14304 716-297-8401 IWDI Bennett Auto Supply 24 75/25 $50 million Harold Bennett 3141 S.W. 10th St., Pompano Beach, FL 33069 800-766-5913 Aftermarket Auto Parts Alliance Knechts Discount Auto Parts 24 0/100 $22.5 million Wally Knecht 3400 Main St., Springfield, OR 97478 541-746-4532 RPM Group Pro Parts Express 24 100/0 $55 million Mike Buchen 1430 Valwood Pkwy. Ste. 100, Carrolton, TX 75006 972-233-1481 Pronto GMG Partners (Tri-State) 23 60/40 $19 million Larry Griffin 34 Hillside Ave., Maywood, IL 60153 630-671-1700 Parts Plus Acme Auto (Motive Parts Whse.) 22 80/20 $23 million James Fine 620 R. Oakwood Ave., W. Hartford, CT 06110 860-246-2540 Aftermarket Auto Parts Alliance Auto Tire & Parts 22 80/20 Unavailable Greg Stroup 212 S. Kingshighway, Cape Girardeau, MO 63702 573-334-9131 NAPA Barnes Motor & Parts Co. 22 75/25 $30 million Henry H. Walston 2728 S.W. Forest Hills Road, Wilson, NC 27893 252-243-2161 NAPA R&L Warehouse (American Auto) 22 50/50 $15 million Ray Kline 423 Elm St., Sullivan, MO 63080 573-468-3212 Federated ABC Auto Parts 21 20/80 $38 million Larry Pyle P.O. Box 3627 Longview, TX 75606 903-232-3060 Aftermarket Auto Parts Alliance Auto Barn 21 65/35 $32 million David Blumberg 13 Harbor Park Drive, Port Washington, NY 11050 516-484-9500 IAPA Consumer Auto Parts 21 30/70 $27 million Merrill Cohen 222 Summer St., Worcester, MA 01604 508-798-1827 RPM Group Lee Auto Parts 21 75/25 $32 million Phill Porpora 1175 Lee St., Des Plaines, IL 60016 847-297-1888 Aftermarket Auto Parts Alliance Allied Auto Parts (Norwood) 20 80/20 $23 million Michael Borr 43 N. Montello St., Brockton, MA 02301 508-588-8500 Pronto Mutual Enterprises (Eagle Auto) 19 50/50 $12 million Randy Pittman 208 Penland, Ft. Worth, TX 76111 817-222-0168 Parts Plus National Auto Stores 19 20/80 Unavailable David M. Stein 2512 Quakertown Road, Pennsburg, PA 18073 215-679-2300 RPM Group Wholesale/ 22 Aftermarket Business January 2003 www.aftermarketbusiness.com The Auto Chain Report

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