AutoZone 2008 Annual Report Download - page 5
Download and view the complete annual report
Please find page 5 of the 2008 AutoZone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2 -
3 -
4 -
5 -
6 -
7 -
8 -
9 -
10 -
11 -
12 -
13 -
14 -
15 -
16 -
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
 |
 |
U.S. Commercial
We continue to be excited by our growth
opportunities in Commercial. As a relative
newcomer to this business (our first
Commercial program opened in 1996 over
17 years after our first Retail store), we
continue to see tremendous opportunities
to profitably grow in this very important
sector of the automotive aftermarket. Our
2008 fiscal year marked a turning point in
this business, where for the first time since
2004, we showed consistent growth in every
quarter. For the year, we grew our sales in
this sector by five percent (excluding the
53rd week). However, we still have a very
small share of the DIFM (do-it-for-me) market. At only 1.3%
market share, we are keenly focused on capitalizing on the
incredible opportunity this business represents. In the spring
of 2007, we embarked on a journey to build a world class
direct sales organization capable of competing at the highest
level. And we believe we are well on our way to accomplishing
that goal. During 2008, we completed a reorganization of our
field sales organization that enabled us to deploy 40% more
AutoZoners into roles with direct contact with our customers.
Additionally, we developed and implemented professional
sales training that equipped these AutoZoners with more
sales tools than ever before.
As we have highlighted for each of the last two fiscal years,
we are very focused on inventory availability and, as a result,
we have added approximately $300 million in new, mainly
hard parts, inventory in just two short years. Our Commercial
customers demand the latest model parts coverage (in some
cases as new as the current model year) to repair cars. We
are determined to build our product assortment to earn their
business and their trust. Additionally, we are committed to
providing these demanding customers with the best products
at the right price. To meet their needs, we continue to enhance
our offerings of the high quality Duralast and Duralast Gold
products at compelling values.
We are pleased with the progress we have made recently
in our Commercial business, but we are not satisfied.
This sector represents tremendous opportunities for us
in 2009 and beyond. We are committed to continuing to
refine our offerings and ensuring that we capitalize on
this incredible opportunity.
Mexico
With 148 stores across 26 Mexican states, we continue
to be proud of the dedicated AutoZoners who have
built this business. This December will mark the 10th
anniversary of the opening of our first store, and we
continue to believe growth opportunities exist for years
to come in Mexico. However, we remain committed to
growing this business prudently and profitably as we
further develop our infrastructure, concurrent with our
store expansion plans.
We’ve developed and implemented
professional sales training that
equipped these AutoZoners with more
sales tools than ever before.