Profile: Advance Auto Parts Inc (AAP.N)
23 Jul 2014
Advance Auto Parts, Inc. (Advance), incorporated on August 1, 2001, is a specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items primarily operating within the United States. The Company operates in two segments: Advance Auto Parts (AAP), and Autopart International (AI). The AAP segment is comprised of its store operations, which operate under the trade names Advance Auto Parts and Advance Discount Auto Parts. The AI segment consists of the operations of Autopart International, Inc. which operates under the Autopart International trade name. The Company’s stores carry a product line for cars, vans, sport utility vehicles and light trucks. The Company serves both do-it-yourself (DIY), and do-it-for-me (Commercial), customers. Its Commercial customers consist primarily of delivery customers for whom the Company delivers product from its store locations to it Commercial customers’ places of business, including independent garages, service stations and auto dealers. On December 31, 2012, the Company acquired B.W.P. Distributors, Inc. In January 2014, Advance Auto Parts, Inc. acquired General Parts International, Inc.
As of December 29, 2012, the Company operated 3,576 AAP stores throughout 39 states in the Northeastern, Mid-Atlantic, Southeastern and Midwestern (inclusive of South Central) regions of the United States, Puerto Rico and the Virgin Islands. 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 private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars and light trucks. Through its integrated operating approach, it serves its DIY and Commercial customers from its store locations and online at www.AdvanceAutoParts.com. Its online Website allows its DIY customers to pick up merchandise from a store or have their purchases shipped directly to their home or business. Its Commercial customers can conveniently place their orders online.
The average size of its stores is 7,300 square feet with the size of its stores ranging from approximately 6,000 to 8,000 square feet. Its stores carry a product offering of approximately 19,000 stock keeping units (SKUs), generally consisting of a custom mix of product based on the stores' respective market. Its stores also have access to an additional assortment of 115,000 SKUs for same-day or next-day delivery from one of its 339 HUB stores or its network of 22 Parts Delivered Quickly (PDQ), facilities. Additionally, its customers have access to over 483,000 SKUs by ordering directly from one of its vendors for delivery to a particular store or other destination as chosen by the customer.
The primary categories of product the Company offers in its stores include parts, accessories, chemicals, oil and other miscellaneous offerings. Parts include alternators, batteries, belts and hoses, chassis parts, clutches, engines and engine parts, ignition, lighting, radiators, starters, spark plugs and wires, transmissions and water pumps. Accessories include floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers. Chemicals include antifreeze, brake and power steering fluid, freon, fuel additives, windshield washer fluid and car washes and waxes. Oil includes transmission fluid and other automotive petroleum products. During the fiscal year ended December 29, 2012 (fiscal 2012), the Company’s Commercial sales consisted of sales to both its walk-in and delivery customers, which represented approximately 35% of its AAP sales.
AI's business serves the Commercial market, with an emphasis on parts for imported cars, from its store locations located primarily throughout the Northeastern and Mid-Atlantic regions of the United States and Florida. In addition, its North American Sales Division serves warehouse distributors and jobbers throughout North America. The AI stores offer approximately 30,000 SKUs through routine replenishment from its supply chain with access to an additional 100,000 to 120,000 SKUs through local sourcing networks. As of December 29, 2012, it operated 218 stores under the Autopart International trade name.
The Company competes with AutoZone, Inc., O'Reilly Automotive, Inc. and The Pep Boys-Manny, Moe & Jack, NAPA and Carquest.
Advance Auto Parts Inc
5008 AIRPORT RD
ROANOKE VA 24012