Advance Auto Parts 2002 Annual Report Download - page 6

We’re ready with a new look. Say you’re driving
down a busy street looking for a part for your
vehicle. Whatever you need, you won’t be able to
miss our new store format. Its upbeat and win-
ning colors and modern design were chosen to
attract customers. We call it the 2010 store. Why
2010? Because it’s the store that’s taking Advance
Auto Parts into the future.
Customers are drawn by:
• An exciting new logo with a waving
racing flag
• New signage that highlights the quality of
our parts and products at a value price
• More logical product displays that help
customers find related items
One of the most significant changes is the removal
of the barriers to our parts area. We changed our
parts counter into numerous workstations to open
up movement between the parts area and the sell-
ing floor. Now customers can easily see one of our
biggest competitive advantages – our large selec-
tion of quality name-brand parts.
When asked about this new format, our
customers said:
• “The new store format is clean, modern
and bright.”
• “It’s very easy to find items.”
• “Service is quick and friendly.”
• “Advance Auto Parts has the best selection
of parts.”
The 2010 store is a big hit with our customers!
It’s such a success that all our new and remod-
eled stores will be 2010 stores. In fact, by the end
of 2003 we’ll be ready with 750 stores in this
exciting new format, up from 360 at the end of
last year.
We’re ready with more parts – closer to our
customers. When you need a part, you need it
now. We’re ready in Advance with more of the
right inventory closer to our customers.
Customers in different locations need parts that
are right for where they live. Developing a cus-
tom assortment of parts and products for each
individual store is one of our most significant
initiatives. By taking into account the vehicle
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10 11
population, climate, and demographics surround-
ing each store, we’re developing a specific and
distinct inventory for all of our stores. It’s our way
of making sure the precise parts our customers
will need will be in the stores nearest them.
Inventory turns will then naturally increase.
We launched phase one of this program in our
major markets during 2002. We developed a unique
mix of harder-to-find parts and put them in our
Local Advance Warehouses (L.A.W.s). These are
stores with an expanded parts selection that feed
inventory to other stores in their market, as needed.
To make this custom mix program happen, we’ve
more than tripled the number of L.A.W.s, from
six at the end of 2001 to 28 today. Each L.A.W.
carries approximately 10,000 harder-to-find parts
specifically chosen for that market. Our efficient
supply chain gets the product from the L.A.W. to
the store that needs it several times every day. It’s
about being ready in Advance with the right mer-
chandise, at the right place, at the right time to
meet our customers’ needs.
We’re ready with category management. In
2002 we began the category management process.
We’re examining each product category, deter-
mining the needs of our customers, and building
stronger relationships with our suppliers to meet
those needs.
We’re already seeing gains in market share on each
of the lines reviewed. We’ve experienced stronger
sales growth, improving inventory turns and
expanded contribution margins. As we continue
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WE’RE EXAMINING EACH PRODUCT CATEGORY,
DETERMINING THE NEEDS OF OUR CUSTOMERS, AND BUILDING
STRONGER RELATIONSHIPS WITH OUR SUPPLIERS
TO MEET THOSE NEEDS.
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The signage calls out
product destinations.
We used automotive
imagery for added visu-
al interest and depth.
[a short tourof the newadvance auto parts]
Our signage high-
lights what we are
all about - quality
parts at low prices.
Our parts service coun-
ters are approachable,
friendly and promote
interaction between our
customers and Team
Members. Our upbeat
graphics call out brand
positioning statements.
As a result of
category management,
we have enhanced
our displays and
improved our
product adjacencies.
All of the enhance-
ments, including layout,
signage, and the new
approach to the parts
service area lead to bet-
ter service for our cus-
tomers. And our
customers are telling us
they really like it!
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