Advance Auto Parts 2008 Annual Report Download - page 21

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In February 2008, we launched a new branding campaign, “Keep the wheels turning.” This campaign was
developed based on a strategic review of our business as well as extensive research conducted with our customers
and Team Members. We believe this campaign, which targets core DIY and Commercial customers, is
differentiating Advance Auto Parts in our industry by positioning us as (i) the brand that best understands
customers’ needs, (ii) the source for brand name parts and products and (iii) the resource for expert advice and
knowledge to help customers keep their vehicles running. The campaign includes creative and compelling television
and radio commercials designed to drive sales and build an enduring, positive image of Advance Auto Parts with our
targeted customers.
AI Segment
We acquired AI in September 2005. The acquisition included 61 stores throughout New England and New
York, a distribution center and AI’s wholesale distribution business. AI complements our growing presence in the
Commercial market in the Northeast.
AI’s business primarily serves the Commercial market, with an emphasis on import parts, from its store
locations. In addition, its North American Sales Division serves 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 own proprietary brand. The AI
stores offer approximately 11,000 SKUs with access to an additional 17,000 unique SKUs through its logistics
network.
At January 3, 2009, we operated 125 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 20
Delaware 1 New Jersey 14 Rhode Island 4
Maine 4 New York 23 Vermont 1
Massachusetts 33
The following table sets forth information concerning increases in the total number of our AI stores:
2008 2007 2006 2005
Beginning Stores 108 87 62 -
New Stores 18 21 25 62
(1)
Stores Closed (1) - - -
Ending Stores 125 108 87 62
(1) Of the 62 new stores in 2005, 61 stores were acquired in September 2005 as part 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 March 2, 2009, we employed 27,396 full-time Team Members and 20,186 part-time Team Members. Our