Advance Auto Parts 2006 Annual Report Download - page 31

high level of service to its commercial customers by providing quality parts, unsurpassed customer service and
efficient parts delivery. As a result of its extensive sourcing network, AI is able to serve its customers in search of
replacement parts for both domestic and imported cars and light trucks with a greater focus on imported parts. The
vast majority of AI’s product is sold under its proprietary brand. The AI stores offer an average of 9,500 SKUs with
access to an additional 14,000 unique SKUs through its logistics network.
At December 30, 2006, we operated 87 stores under the “Autopart International” trade name in the following
states throughout the Northeast:
Number of Number of Number of
Location Stores Location Stores Location Stores
Connecticut 17 New Hampshire 8 Rhode Island 4
Maine 5 New York 19 Vermont 1
Massachusetts 33
The following table sets forth information concerning increases in the total number of our AI stores:
2006 2005
Beginning Stores 62 -
New Stores 25 62
(1)
Stores Closed - -
Ending Stores 87 62
(1) Of the 62 new stores in 2005, 61 stores were acquired in September 2005 as a result of our AI acquisition.
Seasonality
Our business is somewhat seasonal in nature, with the highest sales occurring in the spring and summer months.
In addition, our business can be affected by weather conditions. While unusually heavy precipitation tends to soften
sales as elective maintenance is deferred during such periods, extremely hot or cold weather tends to enhance sales
by causing automotive parts to fail at an accelerated rate.
Team Members
At February 26, 2007, we employed 25,489 full-time team members and 18,283 part-time team members. Our
workforce consisted of 87% of our team members employed in store-level operations, 9% employed in distribution
and 4% employed in our corporate offices. We have never experienced any labor disruption and are not party to any
collective bargaining agreements. We believe that our team member relations are good.
We allocate substantial resources to the recruiting, training and retention of team members. Our performance
management process allows us to align each team member’s goals with our corporate strategic goals. We believe
this program provides us with a well-trained, productive workforce that is committed to high levels of customer
service and assures a qualified team to support future growth.
Trade Names, Service Marks and Trademarks
We own a number of trade names and own and have federally registered several service marks and trademarks,
including “Advance Auto Parts,” “Western Auto,” “Parts America,” “Autopart International” and “PDQ” for use in
connection with the automotive parts retailing business. In addition, we own and have registered a number of
trademarks for our proprietary products. We believe that these trade names, service marks and trademarks are
important to our merchandising strategy. We do not know of any infringing uses that would materially affect the use
of these trade names and marks, and we actively defend and enforce them.
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