AutoZone

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AutoZone, Inc.
Public
Traded asNYSEAZO
S&P 500 Component
IndustryRetail
Hoover's. Retrieved on December 4, 2011.
FoundedJuly 4, 1979; 39 years ago (1979-07-04) (as Auto Shack)
Forrest City, Arkansas, U.S.
HeadquartersMemphis, Tennessee, U.S.
Number of locations
6,003
(in U.S., Mexico, and Brazil)[1]
Key people
Pitt Hyde
(Founder)
William C. Rhodes, III
(Chairman, President, & CEO)
William T. Giles
(CFO)
ProductsAutomotive parts and accessories
RevenueIncrease US$ 10.89 billion (AUG 2017)[1]
Increase US$ 2.08 billion (AUG 2017)[1]
Increase US$ 1.28 billion (AUG 2017)[1]
Total assetsIncrease US$ 9.26 billion (AUG 2017)[1]
Total equityIncrease US$ -1.43 billion (AUG 2017)[1]
Number of employees
~87,000 [1] (2017)
Websitewww.autozone.com

AutoZone, Inc. is an American retailer of aftermarket automotive parts and accessories, the largest in the United States.[1] Founded in 1979, AutoZone has over 6,000 stores across the United States, Mexico, and Brazil. The company is based in Memphis, Tennessee.[1]

History[edit]

1970s[edit]

Originally a division of Memphis-based wholesale grocer Malone & Hyde, the company was known as Auto Shack. After the sale of the grocery operation to the Fleming Companies of Oklahoma City, Oklahoma, the name of the company was changed to AutoZone to reflect the new focus and to settle a lawsuit brought by Tandy Corporation for infringing on Tandy's "Radio Shack" trademark.[2]

On July 4, 1979, the first store opened in Forrest City, Arkansas[3] under the name of Auto Shack.[4] Doc Crain was the store's first manager. Sales that first day totaled $300.00.[5]

1980s[edit]

In 1981, Express Parts or VDP is implemented to get the customers hard to find parts by special ordering them through wholesalers. Total stores was 73 in 7 states.

In 1984, the company became the first auto parts retailer to create a quality control program for its parts. Total stores was 194 in 13 states.

In 1985, Doc Crain coined the term WITTDTJR, which stands for "What it takes to do the job right." Total store count is 263 in 14 states.

By 1986, expansion had made the company grow into a large store chain across the South and the Midwest. That year, Darren Reltherford, manager of Auto Shack's Memphis, Tennessee store, received the first Extra Miler award, which has since been given to AutoZoners who show their dedication to customer satisfaction by "going the extra mile" for customer service. The Duralast line of alternators and starters is released. The Loan-A-Tool program begins allowing customers the ability to borrow specific tools for jobs. The 4th Distribution Center in Greenville, South Carolina opens. Total of stores is 339 in 15 states.

AutoZone store sign in Phoenix, Arizona

In 1987, Auto Shack officially changed its name to AutoZone.[4] The first AutoZone store was in Enid, Oklahoma. That year also, the company introduced WITT-JR, an electronic catalog used to look up parts and keep warranty information. Total of stores is now 459 in 16 states.

In 1989, the company began using a computerized store management system (SMS). The Duralast battery line is released consisting of Sub-Zero, Desert and long life. Total of stores is 513 in 17 states.

1990s[edit]

In 1991, its stock began trading on the New York Stock Exchange using the ticker symbol "AZO." [4] It opened up at $27.50 a share. It was then valued at $1 billion. The 5th DC opens in Lafayette, Louisiana. The company also became the first auto parts retailer to register customer warranties in a computer database.

In 1994, AutoZone began using satellites to facilitate communication between stores and the corporate office. Sales hit $1.5 billion.

In 1995, AutoZone opened its 1,000th store in Louisville, Kentucky. Also, the Duralast trademark made its debut with the Duralast and Duralast Gold batteries. Total of stores is now 1,143 in 26 states.[6]

1996 was the year when the Internet era arrived at the company, when AutoZone opened its company Web site. The new commercial program debuted in Germantown, Tennessee. ALLDATA, a software company based in Elk Grove, California that provides automotive diagnostic and repair information, was acquired.[7]

Company founder Pitt Hyde retired as chairman and CEO in 1997.[4] John Adams became the new chairman and CEO.

In 1998,[8][9] AutoZone acquired Auto Palace, an auto parts chain in the northeastern United States with 112 stores,[10][11] TruckPro L.P., a chain with 43 stores in 14 states, and the 560-store Chief Auto Parts Inc., a chain with a presence in 5 states.[12][13] At the commencement of fiscal 1999, AutoZone made another acquisition by purchasing 100 Express stores from The Pep Boys—Manny, Moe & Jack.[14] The company began a process of internationalization with their first store abroad, which opened in Nuevo Laredo, Mexico.[15] AutoZone closed the 1990s by debuting at the Fortune 500 list in 1999.

2000s[edit]

Steve Odland became AutoZone's third CEO in 2001.[16] Also in 2001, AutoZone sold TruckPro to Paratus Capital Management.[17]

AutoZone store in Hillsborough, North Carolina.

In 2002, AutoZone developed a network of "hub, feeder, and satellite" stores to have more product in the market area, while reducing inventory investment. Sales hit $5.33 billion.[18]

In 2003, the Duralast tool line was introduced. This was a year of important negotiations for AutoZone, as the company partnered with other important auto parts industry companies, such as CarMax and Midas. AutoZone de Mexico opens the first DC in Nuevo Laredo, Mexico. Total stores number 3,219 in 48 states and 49 in Mexico.[19] In 2004, founder J.R. "Pitt" Hyde III was inducted into the Automotive Hall of Fame.[20]

In 2005, William C. Rhodes III was named president and CEO. Steve Odland left to become the chairman and CEO of Office Depot.[21]

In 2007, Bill Rhodes, then 42, was named chairman, president and chief executive officer of AutoZone, Inc. on June 6.[22]

In 2008, AutoZone opened their 4,000th store in Houston, Texas. Sales hit $6.2 billion.[23][24]

2010s[edit]

On August 17, 2012, AutoZone expanded into their 49th state Alaska by opening their 5,000th store in Wasilla, Alaska

In 2012 AutoZone opened their first store in Brazil.[25]

In December 2012, AutoZone purchased AutoAnything.com, an ecommerce leader in aftermarket automotive parts based in San Diego, California.[25][26]

By April 2017, AutoZone had been the largest retailer of automotive parts in North America for three consecutive years.[27] As of August 2017, AutoZone had 5,465 locations in the United States, 524 locations in Mexico, and 14 locations in Brazil, for a total of 6,003.[1]

On October 22, 2018, Pitt Hyde announced that he would be stepping down from AutoZone's board of directors.[28]

Duralast tools[edit]

They have a line of tools with a lifetime warranty.[29]

Corporate affairs[edit]

AutoZone is incorporated in the state of Nevada.[1]

Headquarters[edit]

Since October 1995, AutoZone has been headquartered in its J.R. Hyde, III Store Support Center (SSC), a 270,000-square-foot (25,000 m2), eight-story building in Downtown Memphis, Tennessee.[30] As of 2013 there were over 1,200 employees there.[31]

The project manager of the building's construction was Rob Norcross, a principal at LRK Inc. The building has the capability to withstand a 9.0 magnitude earthquake because it has a special base isolation system that had a price tag of $950,000.[30]

Private labels[edit]

Valucraft, Duralast, and Duralast Gold are AutoZone's private label brands for lead-acid automotive batteries (manufactured primarily by Johnson Controls, but also East Penn, Exide, and other manufacturers). They also sell an AGM line of batteries under the Duralast Platinum name.

Brake pad labels include (ranging from least to most expensive):

  • Duralast - OEM-like performance; semi-metallic or organic.
  • Duralast Gold - OEM design and performance; semi-metallic or ceramic.
  • Duralast Max - superior to OEM design and performance; ceramic.
  • Duralast GT Street - performance pads for select applications.

Valucraft pads are being phased out, as of early 2015. Duralast GT Street pads introduced early 2018.

The Valucraft, Duralast, and Duralast Gold names are used on various other parts and accessories as well.

Retail stores[edit]

Not franchises,[32] AutoZone's 6,000+ retail outlets[3] throughout the United States, Puerto Rico, Mexico and Brazil stock a variety of aftermarket parts.

Sponsorships[edit]

In 2004, AutoZone celebrated its 25th anniversary and announced a corporate sponsorship agreement with auto racing association NASCAR.

In 2007, AutoZone sponsored Kevin Harvick and Timothy Peters in the NASCAR Busch Series.[citation needed]

AutoZone holds the naming rights to the downtown Memphis baseball stadium that is the home of the Memphis Redbirds of the Pacific Coast League. The company also sponsors the AutoZone Liberty Bowl.[33] The AutoZone Liberty Bowl, alongside the College Football Playoff Foundation donated $250,136.03 to the St. Jude Children's Research Hospital.[34] The AutoZone Liberty Bowl awarded 2018's Distinguished Citizen Award to Priscilla Presley.[35]

They are an official sponsor of Bellator MMA, the world's second largest Mixed Martial Arts promotion.

Reception[edit]

Benzinga writer Ken Shreve wrote in 2012 that despite being the market leader of its industry, it has since slipped and needs to get a "tune up."[36] Following a stock drop in 2014, Business Insider's Ankit Ajmera noted that a recovering economy is encouraging consumers to buy new cars instead of repairing their old ones.[37] The significant stock drop that AutoZone experienced in 2017 was speculated by Ian Bezek of Seeking Alpha as being due to a decline in interest in automobiles, used and suggested that the complaint of delayed tax returns is a "tenuous excuse."[38] Despite this, Brian Nagel, an analyst for Oppenheimer called it one of the industry's steadiest performers.[39] Following drops in stock over 2017, InvestorPlace writer Will Healy suggested that debts and unpaid liabilities may be an issue for the stock.[40]

Leo Nelissen of Seeking Alpha expected "new highs" from the company following a positive Q4 2018 fiscal report.[41] This rise prompted a writer for Zacks Equity Research to suggest that it may be time to "cash out" of one's stock during this high.[42] However, Demitrios Kalogeropoulos, writer for the Motley Fool, noted that despite this rise in the fourth quarter, AutoZone experienced "flat or declining market share."[43] A writer for Gainsboro Capital noted that despite issues in 2018, the 30% growth year over year for AutoZone shows potential for the company.[44]

Controversies[edit]

AutoZone paid $3.3 million to settle a lawsuit to the families of a family who was killed due to being rear-ended by an AutoZone-owned truck. The suit alleges that AutoZone was negligent in training the driver of the truck.[45] AutoZone faced a lawsuit for gender discrimination, where the plaintiff alleges that men treated her differently when she was promoted and that she feared revealing a pregnancy to her superior. When the pregnancy was discovered, she alleges that her district manager pressured her to step down from her position. She was demoted in February 2006 and fired in November 2011. The jury on the case ruled in 2014 in favor of the plaintiff, awarding her $185 million in punitive damages as well as approximately $873,000 in back wages. AutoZone has announced its intention to appeal the verdict.[46] The Wall Street Journal's Jacob Gershman suggested that the verdict would be scaled back, noting that the jury verdict is not the end-all be-all.[47] A Georgia woman was fired after a customer insulted her and used multiple racial epithets against her. She alleges that the district manager told her to "suck it up," and is filing a lawsuit against AutoZone for violating her Civil Rights.[48] AutoZone came under fire due to allegations that a district manager had told an employee to remove a flag displayed on the company's premises for the sake of improved diversity. AutoZone denies this, claiming that it was due to the poor means by which the flag was put up, using duct tape and suction cups.[49]

See also[edit]

References[edit]

  1. ^ a b c d e f g h i j k "US SEC: Form 10-K AutoZone, Inc". United States Securities and Exchange Commission. October 25, 2017. pp. 1, 4–5, 9, 22, 25, 82. Retrieved January 10, 2018.
  2. ^ United States Court of Appeals, Sixth Circuit Archived November 25, 2010, at the Wayback Machine.
  3. ^ a b AutoZone, Inc. AutoZone Official Site
  4. ^ a b c d Eng, Dinah (August 12, 2013). "Putting AutoZone into Drive". Fortune. 168 (3): 17–18.
  5. ^ "The AutoZone Story". AutoZone. Retrieved November 12, 2018.
  6. ^ "AutoZone, Form 10-K, Annual Report, Filing Date Nov 27, 1996". secdatabase.com. Retrieved Jan 18, 2013.
  7. ^ "AutoZone, Form 10-Q, Quarterly Report, Filing Date May 20, 1996". secdatabase.com. Retrieved Jan 18, 2013.
  8. ^ "AutoZone, Form 10-Q, Quarterly Report, Filing Date Jun 23, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  9. ^ "AutoZone, Form 8-K, Current Report, Filing Date Jul 2, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  10. ^ "AutoZone To Acquire Auto Palace". PRNewswire. January 14, 1998.
  11. ^ "AutoZone continues growth with Auto Palace purchase". The Auto Channel. February 1998.
  12. ^ O'Dell, John (May 12, 1998). "AutoZone to Acquire Car Parts Rival Chief". Los Angeles Times.
  13. ^ O'Dell, John (July 1, 1998). "AutoZone Purchase of Chief Auto Is Complete". Los Angeles Times.
  14. ^ "AutoZone, Form 10-K, Annual Report, Filing Date Nov 25, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  15. ^ "AutoZone, Form ARS, Filing Date Nov 2, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  16. ^ "AutoZone, Form 8-K, Current Report, Filing Date Jan 12, 2001" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  17. ^ http://www.bizjournals.com/memphis/stories/2001/12/17/daily47.html
  18. ^ "AutoZone, Form 10-K, Annual Report, Filing Date Oct 31, 2002" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  19. ^ "AutoZone, Form 8-K, Current Report, Filing Date Oct 31, 2003" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  20. ^ http://www.autonews.com/article/20041011/SUB/410110722/
  21. ^ "AutoZone, Form 8-K, Current Report, Filing Date Mar 14, 2005" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  22. ^ "AutoZone, Form 8-K, Current Report, Filing Date Jun 7, 2007". secdatabase.com. Retrieved Jan 18, 2013.
  23. ^ "AutoZone, Form 10-K, Annual Report, Filing Date Oct 22, 2007" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  24. ^ "AutoZone, Inc. - About Us". www.autozoneinc.com.
  25. ^ a b "AutoZone, Form 8-K, Current Report, Filing Date Dec 4, 2012". secdatabase.com. Retrieved Jan 18, 2013.
  26. ^ "AutoZone, Form 10-Q, Quarterly Report, Filing Date Dec 13, 2012" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
  27. ^ Adams, Bruce (April 25, 2017). "AutoZone again claims No. 1 spot in Top 25 Auto Chain Report". SearchAutoParts.com. Retrieved April 13, 2018.
  28. ^ "Pitt Hyde to step down from AutoZone board". Commercial Appeal. October 22, 2018. Retrieved November 12, 2018.
  29. ^ "Duralast Tools". AutoZOne. Retrieved November 12, 2018.
  30. ^ a b "AutoZone HQ holds title as most earthquake-resistant Memphis building." Memphis Business Journal. May 13, 2011. Retrieved on December 6, 2014.
  31. ^ "Store Support Center." AutoZone. Retrieved on June 4, 2013.
  32. ^ About Us: Our Company, Our Culture AutoZone Official Site
  33. ^ "College Football Bowl Scene Changes, But AutoZone Liberty Bowl Endures". memphisdailynews.com.
  34. ^ Van Tuyl, Chris (November 11, 2018). "St. Jude children's hospital, WINGS get generous donations". Commercial Appeal. Retrieved November 12, 2018.
  35. ^ Maxey, Ron (April 8, 2018). "Priscilla Presley named AutoZone Liberty Bowl's 2018 Distinguished Citizen". Commercial Appeal. Retrieved November 12, 2018.
  36. ^ Shreve, Ken (September 19, 2012). "AutoZone Needs a Tune Up". Benzinga. Retrieved November 12, 2018.
  37. ^ Ajmera, Ankit (September 22, 2014). "A Better Economy Is Bad News For AutoZone". Business Insider. Retrieved November 12, 2018.
  38. ^ Bezek, Ian (July 18, 2017). "AutoZone: Making The Bull Case". Seeking Alpha. Retrieved November 12, 2018.
  39. ^ Derrick, Jayson (June 20, 2017). "AutoZone Is One Of The Steadiest Performers In Auto-Parts Retail Space". Benzinga.
  40. ^ Healy, Will (February 28, 2018). "Slam the Brakes on AutoZone, Inc. Until It Repairs Itself". InvestorPlace. Retrieved November 12, 2018.
  41. ^ Nelissen, Leo (September 20, 2018). "AutoZone: I'm Expecting New Highs". Seeking Alpha. Retrieved November 12, 2018.
  42. ^ "AutoZone (AZO) Soars to 52-Week High, Time to Cash Out?". Yahoo! Finance. November 9, 2018. Retrieved November 12, 2018.
  43. ^ Kalogeropoulos, Demitrios (September 19, 2018). "AutoZone Talks Execution Stumbles, Rising Expenses, and the Online Sales Challenge". The Motley Fool. Retrieved November 12, 2018.
  44. ^ "AutoZone: The Potential Remains". Seeking Alpha. September 17, 2018. Retrieved November 12, 2018.
  45. ^ Tepfer, Daniel (July 19, 2018). "AutoZone pays $3.3 million for Bridgeport family's deaths". CT Post. Retrieved November 12, 2018.
  46. ^ London, Christina; Nguyen, Candice (November 17, 2014). "AutoZone Ordered to Pay $185M in Discrimination Suit". NBC San Diego. Retrieved November 12, 2018.
  47. ^ Gershman, Jacob (November 19, 2014). "$186 Million AutoZone Verdict is Eye-Opening, but Unlikely to Stick". The Wall Street Journal. Retrieved November 12, 2018.
  48. ^ Northam, Mitchell (January 24, 2018). "AutoZone worker: Customer unleashed racist tirade — and I got fired". AJC. Retrieved November 12, 2018.
  49. ^ Lacapria, Kim (September 2, 2016). "AutoZone Flag Removal". Snopes. Retrieved November 12, 2018.

External links[edit]

Coordinates: 35°08′32″N 90°03′22″W / 35.14231°N 90.05614°W / 35.14231; -90.05614