Advance Auto Parts 2001 Annual Report Download - page 6

6ADVANCE AUTO PARTS ANNUAL REPORT 2001
But Arthur Taubman created a legacy that
went far beyond the leadership required to
grow the business. He had shaped a
company culture that was built on four
principles we observe to this day:
•Provide a good value to the customer.
•Give the customer a reason to return
by providing good service and
quality products.
•Develop a solid reputation of honesty
and integrity.
•Treat employees with love and respect
– like family.
These ideals were a formative influence
on Arthur Taubman’s son Nick, who
became President of the company at the
age of 34 in 1969
and Chief
Executive Officer
in 1985. He made a
number of decisions
which were to have
an extraordinary
impact on the future of the business.
He decided to stop selling appliances
and other home items and concentrate
on the core business of auto parts, and
changed the company’s name to Advance
Auto Parts. He also reinforced our
commitment that people are the top priority.
“At the end of the day, it is the people that
matter,” he said.
In 1985, Garnett Smith was named
President and Chief Operating Officer. He
had risen through the ranks, beginning as a
salesperson in 1959 at our Pulaski, Virginia
store and becoming head of purchasing for
the company before reaching the top post
of Chief Executive Officer in 1997. Under
his leadership, the company grew from 100
stores in 1985 to more than 1,600 at his
retirement in 2000. In 1998, we completed
a successful recapitalization led by
Freeman, Spogli & Co. and secured our
position as the second-largest retailers in
the automotive aftermarket with the
acquisition of the Western Auto Supply
Company. This acquisition alone almost
doubled the number of stores we operated
and expanded our trade area by 20 new
states in the Midwest and Northeast.
Within eleven months, six months ahead of
schedule, we converted 545 stores into
Advance Auto Parts Stores.
In February, 2000 our Chief Executive
Officer, Larry Castellani, joined our
company from Royal Ahold. With a
background in the supermarket industry,
including being Chief Executive Officer of
Tops Friendly Markets, Larry is focused
on expanding operating margins and
increasing the number of customers we
serve at each of our stores.
In addition to Larry Castellani, our
executive committee consists of Jim Wade,
David Reid, Paul Klasing, and Bob Hedrick.
With over 113 years combined experience
in the retail industry and 34 years with the
company, our management team has the
experience, confidence and vision to enhance
profitability and increase customer satisfaction.
Throughout our history, our leaders
have always proclaimed a consistent
message. “The best part is our people.”
We have been fortunate that our growth
was orchestrated, by visionaries who
exemplified those words. Because of this
strong foundation of leadership, today the
company is poised for continued growth
and enhanced financial performance.
Advance Auto Parts History
ADVANCE AUTO PARTS ANNUAL REPORT 2001 7
& President
Arthur Taubman,
Founder & President, 1932 to 1969
Nick Taubman,
President, 1969 to 1984
Chief Executive Officer, 1985 to 1997
Garnett Smith,
President, 1985 to 1999
Chief Executive Officer, 1997 to 2000
& President
Paul Klasing,
Executive Vice President
Merchandising & Marketing
Bob Hedrick,
Senior Vice President
Human Resources
Jim Wade,
President and Chief
Financial Officer
Larry Castellani,
Chief Executive Officer
David Reid,
Executive Vice President and
Chief Operating Officer
Like many great companies, Advance Auto Parts was
the dream of one person that was expanded and
improved upon by others. Arthur Taubman began the
company in 1932 when he purchased three home and
auto supply stores in Roanoke and Lynchburg, Virginia.
By the time of his retirement in 1969, there were 54
“Advance Stores.”