Advance Auto Parts 2009 Annual Report Download - page 17

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We also provide a variety of services free of charge to our customers including:
• Battery & wiper installation
• Battery charging
• Check engine light reading where allowed by law
• Electrical system testing, including batteries, starters, alternators and sensors
• “How-To” Video Clinics & Project Brochures
• Oil and battery recycling
Our stores are 100% company operated and are divided into three geographic areas. Each geographic area is
managed by a senior vice president, who is supported by regional and district management. District managers have
direct responsibility for store operations in a specific district, which typically consists on average of 15 stores.
Depending on store size and sales volume, each store is staffed by 8 to 16 Team Members, under the leadership of a
general manager. Store Team Members are comprised of full and part-time Team Members. Each store include a
parts professional, or parts pro, who has an extensive technical knowledge of automotive replacement parts and
other related applications to better serve our commercial and DIY customers. Many of our stores include bilingual
Team Members to better serve our diverse customer base. We offer training to all of our Team Members which
includes formal classroom workshops, online seminars and certification by the National Institute for Automotive
Service Excellence, or ASE. ASE is broadly recognized for training certification in the automotive industry.
Commercial Sales. Our commercial sales consist of sales to both our walk-in and delivery Commercial
customers, which represented approximately 29% of our AAP sales in Fiscal 2009. Since 1996, we have
aggressively expanded our sales to Commercial customers through our Commercial delivery program. For delivered
sales, we utilize our Commercial delivery fleet to deliver product from our store locations to our Commercial
customers’ place of business, including independent garages, service stations and auto dealers. Our stores are
supported by a Commercial sales team who are dedicated to the development of our national, regional and local
Commercial customers.
Under our Commercial Acceleration strategy, we are focused on increasing our Commercial sales at a faster
rate in light of the favorable market dynamics. During 2009, we increased the size of our sales force by
approximately 45% for a greater emphasis on acquiring new Commercial customers and increasing our share of
existing commercial customers’ purchases. We have added key product brands in our stores that are well recognized
by our Commercial customers, as well as increased the parts knowledge of our store Team Members. We believe
these initiatives will enable us to gain more Commercial customers as well as increase our sales from existing
customers who will use us as their “first call” supplier. At January 2, 2010, 2,868 AAP stores, or 88% of total AAP
stores, had Commercial delivery programs, which was up slightly from 85% at January 3, 2009.
Store Development. Our store development program has historically focused on adding new stores within
existing markets where we can achieve a larger presence, remodeling or relocating existing stores and entering new
markets. The addition of new stores, along with strategic acquisitions, has played a significant role in our growth
and success. We believe the opening of new stores, and their strategic location in relation to our DIY and
Commercial customers, will continue to play a significant role in our future growth and success.
We open and operate stores profitably in both large, densely populated markets and small, less densely
populated areas that would not otherwise support a national chain selling primarily to the retail automotive
aftermarket. We complete substantial research prior to entering a new market. Key factors in selecting new site and
market locations include population, demographics, vehicle profile, number and strength of competitors’ stores and
the cost of real estate.