About BLUE RIBBON MOTORING, LLC

Imagine that you are in your garage making some weekend car repairs. The wheel cylinders are leaking ... the brake shoe adjuster nut is rusted solid ... you're about to enter ... the AutoZone. With more than 5,300 stores in the US and Puerto Rico, it's the nation's #1 auto parts chain. It also operates some 375 stores in Mexico and four in Brazil. AutoZone stores sell hard parts (alternators, engines, batteries), maintenance items (oil, antifreeze), accessories (car stereos, floor mats), and non-automotive merchandise under brand names, as well as under private labels. AutoZone's commercial sales program distributes parts and other products to garages, dealerships, and other businesses.

Geographic Reach

Based in Tennessee, AutoZone sells auto and light truck parts, chemicals, and accessories through more than 5,300 AutoZone stores in 49 US states, the District of Columbia, and Puerto Rico. The company's fast-growing subsidiary in Mexico, AutoZone de México, operates more than 340 stores. AutoZone has two store support centers south of the border in Monterrey and Chihuahua. The company also has four stores in Brazil. The firm does not break out sales by region.

Operations

As part of its business, AutoZone operates through one reportable segment: Auto Parts Stores. Besides being a retailer and distributor of auto parts and accessories, AutoZone produces, sells, and maintains diagnostic and repair information software used in the auto repair industry through its ALLDATA business and sells directly to customers through its e-commerce site, autozone.com.

Sales and Marketing

AutoZone relies on targeted advertising and promotions to build its brand, offer advice about the overall importance of vehicle maintenance, and position its business as a great value. To drive traffic to its stores, the retailer advertises on broadcast and Internet media. It works to educate consumers about which products they need through use of in-store signage and circulars, as well as creative product placement and promotions.

Leveraging a consistent store format, each AutoZone store boasts between 85% and 90% of selling space -- up to 45% of which is dedicated to hard parts inventory. Stores are outfitted with Z-net, AutoZone's proprietary electronic catalog that gives employees advice and information for customers' vehicles, down to the year, make, model, and engine type.

Financial Performance

AutoZone has achieved extraordinary growth over the last few years, with revenues climbing 4% from $9.2 billion in 2013 to peak at a record-setting $9.5 billion in 2014. Profits also jumped 5% from $1.02 billion in 2013 to $1.07 in 2014, another company milestone.

The historic growth for 2014 was fueled by a 4% boost in domestic same store sales and $166 million in sales from new stores. Improvements in domestic same store sales were driven by a higher average transaction value, partially offset by a drop in the number of transactions. During the past five years, AutoZone has grown its stores network by 4% (from 4,417 stores in 2009 to 5,391 stores in 2014). During the same time period, annual revenues have surged from $6.8 billion to $9.5 billion.

Strategy

The company's core strategy includes expanding its stores network. It added more than 190 stores in fiscal 2014 and is focusing on new-store development while also enhancing its existing stores and infrastructure.

AutoZone has grown quickly through a series of acquisitions over the past several years but now is focused on internal growth and development. Among the factors AutoZone considers when opening new stores is how many cars in an area are OKVs or "our kind of vehicles," that is, cars older than seven years and no longer under their manufacturers' warranty.

AutoZone is also growing quickly in Mexico, where cars are even older -- and in need of more repairs -- than in the US. The auto parts retailer also loans tools and sells merchandise and diagnostic and repair advice online. In addition to parts, the stores also offer diagnostic testing for starters, alternators, and batteries. (The shops do not sell tires or perform general auto repairs.) In 2013 AutoZone opened a handful of stores in the emerging market of Brazil.

Mergers and Acquisitions

In 2014 the company purchased Interamerican Motor Corporation (IMC), a large distributor of OE quality import replacement parts in the US, for approximately $80 million, which operates 17 locations. To build its online presence, AutoZone in 2013 acquired AutoAnything, an online retailer of specialized automotive products.

- Show Less + Show Full Description

BLUE RIBBON MOTORING, LLC

Ave Laurel 206 Calle C Urb Ind Minillas
Bayamon, PR 00959-1909
Phone: 1 (858) 569-8111
Fax: 1 (858) 569-8503
www.autozone.com

Stats

  • Employer Type: Public
  • Mbr: Selwyn Klein

Major Office Locations

  • Bayamon, PR

Become a Vault Basic Member

Complete your Vault Profile and get seen by top employers