Advance Auto Parts 2009 Annual Report Download - page 6

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test our Commercial site, develop a global sourcing operation in Taipei, strengthen our core merchandising
capability and increase Team Member training in order to provide our customers with a superior experience
and the full solution. Additionally, we had to come to the painful decision to eliminate underperforming
locations and departments. These decisions and investments are focused on both catching up and
building industry leading capabilities to
compete and win in the future.
Our customers, Team Members and
external market share data validate
that our choices and investments
are paying off. With our third
Team Calibration survey last fall,
we saw further improvement
in our team’s engagement in
the success of our Company
and business direction. Our
Customer Satisfaction scores are also improving, which means our customers are
noticing our investments to better serve them.
Overall, I am very pleased with our strategic and financial accomplishments in 2009
and our improvements over 2008 including:
•Our second full year of double-digit Commercial comparable store sales growth
•Positive DIY comparable store sales growth for the year
•Our store portfolio was expanded by opening 75 new Advance stores and
32 new Autopart International stores
•We completed approximately 1,500 store-level inventory upgrades and
expanded our supply chain by opening six net new PDQs and 80 HUBs
•Sales per square foot increased $10 or 5% to $218
•EPS increased 14% on a comparable operating basis
•Free cash flow of $410 million increased 46%
•Return on invested capital increased 110 basis points to 15.1%
•Customer Satisfaction scores increased from 65 to 73 in DIY and 60
to 64 in Commercial
•Our Team Member Engagement scores increased from 65 to 75
•Team Member retention improved to 66% from 61%
•Team Members, customers and vendor partners raised over
$3.8 million for the Juvenile Diabetes Research Foundation
(JDRF), making us the #1 corporate JDRF partner
— continued on page 7
Advance launched its first e-commerce
website for DIY in 2009. Additionally, a
dedicated Customer Care Center now supports
our e-commerce customers. Today, more than
50 talented professionals with Fortune 500
backgrounds are working in-house to enhance
our
e-commerce capabilities. The Commercial
side of the site will go live in 2010.
4