Advance Auto Parts 2007 Annual Report Download - page 30

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AI Segment
We acquired AI in September 2005. The acquisition, which included 61 stores throughout New England and
New York, a distribution center and AI’s wholesale distribution business, complements our growing presence in the
DIFM market in the Northeast.
AI’s business primarily serves the commercial market from its store locations. In addition, its North American
Sales Division services warehouse distributors and jobbers throughout North America. We believe AI provides a
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 17,000 unique SKUs through its logistics network.
At December 29, 2007, we operated 108 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 Pennsylvania 9
Maine 5 New Jersey 9 Rhode Island 4
Massachusetts 33 New York 22 Vermont 1
The following table sets forth information concerning increases in the total number of our AI stores:
2007 2006 2005
Beginning Stores 87 62 -
New Stores 21 25 62
(1)
Stores Closed - - -
Ending Stores 108 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 22, 2008, we employed 25,499 full-time team members and 18,566 part-time team members. Our
workforce consisted of 88% of our team members employed in store-level operations, 9% employed in distribution
and 3% 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.
7