Profile: Advance Auto Parts, Inc. (AAP.N)

Advance Auto Parts, Inc. (Advance), incorporated in 2001, operates within the United States automotive aftermarket industry, which includes replacement parts (excluding tires), accessories, maintenance items, batteries and automotive chemicals for cars and light trucks (pickup trucks, vans, minivans and sport utility vehicles). The Company is a specialty retailer of automotive parts, accessories and maintenance items to do-it-yourself (DIY) and do-it-for-me (DIFM) or commercial customers in the United States. Advance operates in two business segments: Advance Auto Parts (AAP) and Autopart International (AI). The AAP segment consists of its store operations within the United States, Puerto Rico and the Virgin Islands, which operates under the trade names Advance Auto Parts, Advance Discount Auto Parts and Western Auto. The AI segment consists solely of the operations of Autopart International, which operates as an independent, wholly owned subsidiary.

Advance Auto Parts Segment

As January 3, 2009, the Company operated 3,243 stores within the United States, Puerto Rico and the Virgin Islands. A total of 3,215 stores were located throughout 40 states in the Northeastern, Southeastern and Midwestern regions of the United States. These stores operated under the Advance Auto Parts trade name except for certain stores in the state of Florida, which operated under the Advance Discount Auto Parts trade name. These stores offer a selection of brand name and automotive replacement parts, accessories and maintenance items for domestic and imported cars and light trucks. In addition, Advance operated 28 stores under the Western Auto and Advance Auto Parts trade names, located outside the United States offshore.

The average size of Advance’s stores is 7,400 square feet with the size of its new stores approximating 6,000 to 7,000 square feet. Its stores carry a standard offering of approximately 16,000 standard stock keeping units (SKUs). Some of its stores carry an additional customized assortment of 10,000 SKUs for same-day or next-day delivery to other select stores within the respective service area. Advance also utilizes a network of Parts Delivered Quickly (PDQ) facilities and one Master PDQ facility to ensure its stores have the right product at the right time for its customers’ needs. The Company’s PDQ and Master PDQ network of facilities provide its customers an additional assortment of approximately 64,000 less common parts and accessories on same-day or overnight basis. Advance’s customers have access to over 280,000 SKUs by ordering directly from one of its vendors for delivery to a particular store or other destination as chosen by the customer.

The products offered in the Company’s stores include filters, alternators, transmissions, windshield wipers, radiators, batteries, clutches, windshield washer fluid, brake pads, shock absorbers, electronic ignition components, floor mats, belts and hoses, struts, engines, steering wheel covers, radiator hoses, suspension parts, oil and transmission fluid, lighting, starters, spark plugs, antifreeze, and wash and waxes. It also provides a variety of services free of charge to its customers, including battery installation, How-To Project Brochures, electrical system testing, wiper installation, How-To Video Clinics, and oil and battery recycling.

Autopart International Segment

AI’s business primarily serves the commercial market from its store locations. In addition, its North American Sales Division services warehouse distributors and jobbers throughout North America. Majority of AI’s product is sold under its own brand. The AI stores offer approximately 11,000 SKUs with access to an additional 17,000 SKUs through its logistics network. As January 3, 2009, the Company operated 125 stores under the Autopart International trade name.

The Company competes with AutoZone, Inc., O'Reilly Automotive, Inc. and The Pep Boys–Manny, Moe & Jack.