Advance Auto Parts 2003 Annual Report Download - page 7

Page 5
Building Opportunity
for Our Team
On October 2, 2003, we opened our 2,500th store in Parma, Ohio, in the
Cleveland market. This was a significant milestone for our Company for a
number of reasons. It is a confirmation that people in thousands of towns
and cities around the country value the services that we provide—that our
parts, people, and prices fulfill a real need. It is a reflection of our growing
leadership in our industry and the success of our operating initiatives. And it
is an indication of the opportunities we can offer our Team Members, our
most valuable asset.
It is vital to our success to have a stable,
productive team. We encourage our
Team Members to view their work at
Advance Auto Parts, not as a job, but as
a career in a flourishing company. The
more we grow, the more opportunities
there are for advancement and for
enhanced job satisfaction.
But it is not enough simply to provide
opportunity. One of our most important
initiatives is to provide Team Members
with the right training to enhance their
professional and personal development.
In 2003, we implemented a new per-
formance appraisal system to assess
the development needs of each Team
Member and to tailor classroom and online training programs specific to his
or her needs. By focusing on developing each individual, we are increasing
our retention rates and enhancing our customer service levels.
These efforts have been greeted enthusiastically. Our Team Members are
excited about building their skills. In fact, the number of Team Members who
received their Automotive Service Excellence (ASE) certification nearly dou-
bled from last year and now, we employ the largest number of certified
parts specialists in the automotive aftermarket retail industry. At Advance
Auto Parts, we know that investing in our team’s future is the key to continu-
ing to provide legendary customer service.
Creating Stores that Look Great—
and Function Efficiently
Our 2,500th store is also an example of the groundbreaking new 2010 store
format that we are rolling out across our chain. We call it 2010 because it is
the store that is taking Advance Auto Parts into the future.
In our previous format, a long parts counter divides the selling floor from the
parts shelves. In our 2010 stores, we’ve replaced this barrier with a series of
workstations, opening up movement between the parts area and the selling
floor. Our 2010 stores also feature high-impact signage highlighting quality
parts and products at a value price and a
more logical merchandise layout.
In 2003, we began converting stores on a
market by market basis including the
Charlotte, North Carolina and Richmond,
Virginia markets. At year’s end, 714 stores
boasted this new format, and we expect to
have over one thousand 2010 stores by the
end of 2004.
Our Management Planning and Training
(MPT) system is also a key part of our
success. Using store-specific data analyzed
at 15-minute intervals, MPT helps man-
agers appropriately staff their stores to
ensure that customers receive friendly,
knowledgeable help during peak hours.
During low traffic periods, it helps managers prioritize tasks to ensure that
their store is properly cleaned, maintained, and stocked. MPT has been instru-
mental in driving our sales and leveraging our labor expense-to-sales ratio.
The MPT system not only increases team productivity, but it also encourages
the growth of motivated, independent managers to become strong Company
leaders. With MPT, we can be assured that Advance Auto Parts has the right
people doing the right thing at the right time—satisfying our customers.
2,500 Stores Strong and Building Momentum
Page 4 Photo: Pictured from left to right:
1. Sandy Mabry, customer 2. John Hunter, Division Commercial Sales Manager, Division #1404
Page 5 Photo: Pictured from left to right:
1. Laurie Crawford, customer 2. Keith Wade, Assistant Manager, Store #6256
Advance Auto Parts, Inc. and Subsidiaries