Advance Auto Parts 2009 Annual Report Download - page 21

8
AI Segment
AI’s business primarily serves the Commercial market, with an emphasis on parts for imported cars, from its
store locations located primarily throughout the Northeast and Mid-Atlantic regions. 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 18,000
SKUs with access to an additional 17,000 unique SKUs through its supply chain network.
AI has significantly increased its store count since our acquisition of AI in September 2005. At January 2, 2010,
we operated 156 stores under the “Autopart International” trade name in the following states:
Number of Number of Number of
Location Stores Location Stores Location Stores
Connecticut 17 Massachusetts 32 Pennsylvania 20
Delaware 1 New Hampshire 8 Rhode Island 4
Florida 3 New Jersey 16 Vermont 1
Maine 4 New York 25 Virginia 12
Maryland 13
The following table sets forth information concerning increases in the total number of our AI stores:
2009 2008 2007 2006 2005
Beginning Stores 125 108 87 62 -
New Stores 32 18 21 25 62
(1)
Stores Closed (1) (1) - - -
Ending Stores 156 125 108 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 February 26, 2010, we employed approximately 29,000 full-time Team Members and approximately 20,000
part-time Team Members. Our workforce consisted of 90% of our Team Members employed in store-level
operations, 7% 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.
Intellectual Property
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