Advance Auto Parts
|This article needs additional citations for verification. (April 2011)|
Service is our best part...
|Traded as||NYSE: AAP|
|Industry||Auto Parts Retail|
|Headquarters||Roanoke, VA, USA|
Number of locations
|John C. Brouillard
(Chairman of the Board)
Darren R. Jackson
(CEO) & (Director)
Mike Norona, EVP & CFO
|Products||Replacement automotive parts & accessories|
|Revenue||US$5.41 Billion (FY 2009)|
|US$454 Million (FY 2009)|
|US$270 Million (FY 2009)|
|Total assets||US$3.07 Billion (FY 2009)|
|Total equity||US$1.28 Billion (FY 2009)|
Number of employees
|55,000 - January 2009|
Advance Auto Parts, is headquartered in Roanoke, Virginia, and is now the largest retailer of automotive replacement parts and accessories in the United States after acquiring CARQUEST in October 2013. AAP was founded in 1932 and had 2011 sales of approximately $6.2 billion. AAP operates over 3,800 stores in forty U.S. states and has over 55,000 employees.
In 2005, Advance Auto Parts purchased Autopart International, Inc. which operates 202 stores along the Atlantic Seaboard. As of 2014, Autopart International still operates as a separate division within Advance Auto.
The first major expansion of Advance Auto Parts was in 1998 when the company acquired the remaining operations of Western Auto, an auto parts and general store retailer. Most of the Western Auto operations had been taken over by Sears, Roebuck and Co. in 1987.
In April 2001, Advance Auto Parts acquired Carport Auto Parts, a regional retail chain with 29 stores in Alabama and Mississippi. On November 28, Advance acquired 671 Discount Auto Parts, Inc., a regional auto parts chain in Florida, Alabama, Georgia, South Carolina, and Louisiana. Upon completion of this merger, Advance Auto Parts became a publicly traded company, listed as a common stock on the New York Stock Exchange under the symbol AAP. The year ended with 2,484 stores in 38 states.
In September 2006, Advance Auto Parts (NYSE:AAP) announced an agreement with ADMMicro, a VA-based company, to retrofit certain existing stores and equip new stores with an Energy Management System (EMS).
Advance now operates 4,000 locations in 40 states including Puerto Rico & the Virgin Islands using the following branded names: Advance Auto Parts, Advance Discount Auto Parts, and Western Auto (Puerto Rico & Virgin Islands).
In 2010, Advance Auto Parts announced a deal with Monster Jam to become the title sponsor. The company sponsors a truck on the circuit called the Advance Auto Parts Grinder. As of the close of FY 2013, Advance has chosen not to renew ties with Monster Jam, and the Feld Organization.
In December 2012, Advance Auto Parts acquired BWP Distributors, a Carquest franchise for the New England region that included the transfer of 124 company owned retail locations plus 2 distribution centers. The responsibility for 92 independently owned location that were service by BWP were transferred to General Parts, Inc., the largest Carquest franchise along with one distribution center for servicing those locations.
On October 16, 2013, Advance Auto Parts entered into a definitive agreement to acquire General Parts International, Inc. (GPI), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands, in an all-cash transaction with an enterprise value of $2.04 billion. The transaction has been approved by the boards of directors for both companies. The deal creates the largest automotive aftermarket parts provider in North America, with annual sales of more than $9.2 billion and more than 70,000 employees.
After private talks with both Autozone and O’Reilly Auto Parts about the acquisition of GPI, and the Carquest/Worldpack brands both companies took a pass on the purchase, sighting significant customer over lap between the existing business and the GPI business. AZ’s and O’R’s market mix hover around 50/50 DIY vs. DIFM. Advance Auto’s mix was closer to 75% DIY and 25% DIFM. By purchasing and including GP’s market base, Advance’s mix is now much closer to 50/50. What Advance could not build, do to lack of commitment and corporate stagnation, they were able to purchase by combining the assets and client bases between the 2 companies.
General Parts International, Inc. being based in Raleigh NC will become the new defacto Corporate Office, based on local media reports. Based on those same media reports, some 600 jobs will be created. Digging a little deeper into those numbers, most of the jobs created will be transfers of personnel from Roanoke, Minnesota or between the now redundant GPI positions. It is hopeful that the net result between those former GPI positions and the corresponding new Advance positions is a gain.
In an effort to be an "also ran" in 2014 Advance Auto Parts began a Loyalty Program for DIY customers, this program was named Speed Perks and significantly lagged behind both Autozone's and O'Reilly's Loyalty Programs. By using the program on purchases, and in many cases not purchasing from Advance Auto Parts, the holder of the Speed Perk will receive discounts off of purchases. In many cases this discount is more than the standard 20% off discount allowed to be taken by employees. Based on a non-employee discount amount being greater than the employee discount amount, it appears where the Advance Auto Parts loyalty lies.
Advance Auto Parts is now the largest automotive aftermarket retailer in the United States based on sales and store count. The company premiered on the Fortune 500 list of companies in 2003 at No. 466 and has remained on the list since that time. As of June 2014, it was ranked at No. 1,412 on the Forbes magazine "World's Biggest Public Companies" list.
Advance has received numerous recognitions for charitable contributions. The company has been nationally recognized for its fundraising for the Juvenile Diabetes Research Foundation (JDRF), having donated more than $20 million since 1994.Advance acts as an aggregator for the largest portion of the donations for JDRF, collecting monies from both walk-in customers and commercial business through the sale of paper sneakers, that once purchased by the customer are displayed on the store windows.
- Advance Auto Parts (AAP) annual SEC income statement filing via Wikinvest
- Advance Auto Parts (AAP) annual SEC balance sheet filing via Wikinvest
- "About Us - History of Advance Auto Parts". Advance Auto Parts. Retrieved February 27, 2012.
- Aftermarket Business Top 40
- "Advance Auto Parts Announces Acquisition of Autopart International, Inc.; New Store Count Now Expected to Be 220-230 Stores In 2005". Business Wire. September 15, 2005.
- "Advance Auto Parts Acquires Autopart International". aftermarketNews. September 15, 2005.
- Snipes, Cameron (December 16, 2013). "Year in Review: Sloan sells Raleigh's General Parts for $2 billion". Triangle Business Journals.
- Jaisinghani, Sagarika (October 16, 2013). "Advance Auto expands repair shop business with $2 billion buy". Reuters.
- "Sears Is Selling Its Western Auto Supply Unit". Los Angeles Times. August 18, 1998.
- "Carport will be sold to Advance Auto Parts". Tuscaloosa News. March 16, 2001. p. B7.
- "Advance Auto Parts to Acquire Carport Auto Parts Stores". PRNewswire. March 15, 2001.
- "Discount Auto May Lose 70 Stores; Advance Auto may close the stores as part of its merger". Lakeland Ledger. January 23, 2002. p. E1.
- "Discount Auto shareholders approve Advance merger". Tampa Bay Business Journal. November 30, 2001.
- "Advance Auto Buys 55 Stores". Roanoke Times. July 24, 2002. Retrieved February 27, 2012. (subscription required (. ))
- "Advance Auto Parts to Acquire Trak Auto Parts Stores in Washington, D.C., Northern Virginia, and Eastern Maryland Markets" (Press release). Advance Auto Parts. July 23, 2002. Retrieved February 27, 2012.
- "ADMMicro Installing Energy Saving System in Advance Auto Parts Stores" (Press release). ADMMicro. September 13, 2006.
- "Advance Auto Parts Announces Closing of Acquisition of BWP Distributors". Reuters. December 31, 2012.
- "Advance Auto Parts Announces Acquisition Of BWP Distributors". AftermarketNews. December 19, 2012.