Advance Auto Parts 2004 Annual Report Download - page 7

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We’re฀working฀harder฀to฀grow฀the฀most฀modern฀store฀base฀in฀our฀industry.฀Advance฀Auto฀Parts’฀2010฀format฀is฀one฀
of฀the฀most฀innovative฀store฀designs฀in฀retail฀today฀and฀is฀helping฀us฀to฀grow฀the฀most฀exciting฀and฀modern฀store฀base฀in฀our฀industry.฀
We฀believe฀this฀customer-friendly฀format฀will฀support฀our฀same-store฀sales฀growth฀for฀many฀years฀to฀come.฀
฀ At฀year-end,฀more฀than฀42%฀of฀our฀stores฀boasted฀the฀2010฀format฀and,฀by฀the฀end฀of฀2005,฀more฀than฀50%฀of฀our฀stores฀will฀be฀operating฀with฀
this฀format.฀In฀2003,฀we฀began฀converting฀stores฀on฀a฀market-by-market฀basis฀and฀will฀continue฀with฀this฀efficient฀plan฀as฀we฀convert฀all฀of฀our฀
stores฀ over฀the฀ next฀ several฀years.฀In฀2004,฀ we฀ held฀grand฀ reopening฀celebrations฀in฀ several฀of฀our฀major฀markets฀ including฀ Orlando,฀Florida;฀
Nashville,฀Tennessee;฀and฀Austin฀and฀San฀Antonio,฀Texas.฀
฀ Our฀new฀stores฀continue฀to฀achieve฀even฀higher฀sales฀in฀their฀first฀year.฀Our฀focus฀on฀opening฀stores฀primarily฀in฀under-penetrated฀markets฀combined฀
with฀our฀national฀advertising฀campaign฀is฀raising฀our฀brand฀awareness฀and฀strengthening฀our฀position฀as฀a฀leader฀in฀the฀automotive฀aftermarket.
฀ Our฀in-store฀initiatives฀also฀are฀enhancing฀our฀customer฀service฀levels฀and฀driving฀consistent฀same-store฀sales฀growth.฀Our฀investment฀in฀the฀latest฀
technology,฀such฀as฀our฀proprietary฀POS฀and฀electronic฀parts฀catalog฀system,฀APAL฀(Advance฀Parts฀and฀Accessories฀Lookup),฀is฀putting฀the฀tools฀
that฀our฀team฀needs฀at฀their฀fingertips฀to฀serve฀our฀customers฀better.฀In฀addition,฀our฀MPT฀(Management฀Planning฀and฀Training)฀system฀is฀helping฀
our฀store฀managers฀to฀improve฀our฀customers’฀shopping฀experience฀by฀having฀the฀right฀Team฀Member฀doing฀the฀right฀job฀at฀the฀right฀time.฀
฀ We฀also฀introduced฀our฀Consumer฀Education฀program฀in฀2004,฀which฀is฀the฀first฀program฀of฀its฀type฀in฀our฀industry.฀Two฀elements฀of฀this฀grow-
ing฀program฀are฀our฀free฀brochure฀kiosks฀displaying฀“We’re฀ready฀with฀Answers,”฀and฀our฀free฀monthly฀video฀clinics฀broadcast฀on฀Advance฀TV,฀our฀
exclusive฀in-store฀how-to฀network.฀This฀ information฀is฀also฀available฀on฀ our฀informative฀web฀ site,฀www.AdvanceAutoParts.com.฀This฀program฀is฀
providing฀our฀customers฀information฀regarding฀“why฀to”฀and฀“how฀to”฀perform฀regular฀vehicle฀maintenance,฀in฀order฀to฀enhance฀their฀vehicles’฀
safety,฀reliability,฀and฀appearance.
5
Advance฀Auto฀Parts,฀Inc.฀and฀Subsidiaries
Growing฀Our฀Modern฀Store฀Base:
฀ ฀Advance฀Auto฀Parts฀has฀the฀#1฀market฀position,฀as฀measured฀by฀store฀
count,฀in฀the฀majority฀of฀our฀markets.
฀ ฀In฀2004,฀ we฀opened฀125฀new฀stores,฀ending฀ the฀year฀with฀a฀ total฀of฀
2,652,฀increasing฀our฀square฀footage฀by฀4.6%.
฀ ฀In฀2005,฀we฀plan฀to฀open฀150–175฀new฀stores,฀which฀will฀increase฀our฀
square฀footage฀by฀6%฀to฀7%.
฀ ฀With฀just฀under฀100฀stores฀remaining,฀we฀will฀complete฀the฀conversion฀
of฀our฀Discount฀Auto฀Parts฀stores฀in฀Florida฀during฀2005.
฀ ฀We฀have฀increased฀our฀market฀share฀in฀every฀region฀where฀we฀operate฀
due฀to฀strong฀same-store฀sales฀growth฀and฀new฀store฀openings.
฀ ฀We฀believe฀we฀have฀the฀opportunity฀to฀add฀at฀least฀1,500฀new฀stores฀in฀
existing฀under-penetrated฀markets.