Advance Auto Parts 2010 Annual Report Download - page 18

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3
an integrated operating approach to our store operations, we are focused on both the acceleration of Commercial
sales and more stable growth of DIY sales based on market dynamics.
We also provide our customers online shopping at www.AdvanceAutoParts.com and access to over 100,000
stock keeping units, or SKUs, of the same product carried in our stores as well as other product offerings and
services. Our current website was launched in October 2009 as part of our e-commerce strategy to provide an online
shopping capability to both our DIY and Commercial customers. Our online website allows our DIY customers to
pick up merchandise at a conveniently located store or have their purchases shipped directly to their home or
business. Our online website provides our Commercial customers an opportunity to conveniently place their orders
online.
AAP Stores
Store Overview. Our stores generally are located in freestanding buildings in areas with high vehicle traffic
counts, good visibility and easy access to major roadways and to our Commercial customers. We believe that our
stores exhibit a customer-friendly format with the majority of our stores featuring an updated exterior and interior,
bright lighting, and a well-designed and easily navigated floor plan. The average size of our stores is 7,300 square
feet with the size of our typical new stores ranging from approximately 6,000 to 7,000 square feet. Our stores
generally are open from 7:30 a.m. to 9:00 p.m. six days a week and 9:00 a.m. to 9:00 p.m. on Sundays and most
holidays to meet the needs of our DIY and Commercial customers.
Our stores carry a product offering of approximately 17,500 SKUs, generally consisting of a custom mix of
product by store based on the respective market. Additionally, a majority of our stores carry an additional
customized assortment of 12,000 SKUs for same-day or next-day delivery to other select stores within the respective
service area. We refer to these stores as HUB stores. Our stores are replenished from one of our eight distribution
centers once per week on average.
We also utilize a network of Parts Delivered Quickly, or PDQ®, facilities and one Master PDQ® facility to
ensure our stores have the right product at the right time to meet our customers’ needs. Our PDQ® and Master PDQ®
network of facilities provide our customers with an additional assortment of approximately 96,000 less common
SKUs on a same-day or overnight basis. Lastly, our customers have access to over 300,000 SKUs by ordering
directly from one of our vendors for delivery to a particular store or other destination as chosen by the customer.
We strive to be the leader in the automotive aftermarket industry by fulfilling our promise, ‘Service is our best
partSM,’ through our Service Leadership and Superior Availability strategies. We offer our customers quality
products which are backed by a solid warranty. Many of our products are offered at a good, better or best
recommendation differentiated by price and quality. Store Team Members utilize our proprietary point-of-sale, or
POS, system, including a fully integrated electronic parts catalog to identify and suggest the appropriate quality and
price options for the SKUs we carry, as well as the related products, tools or additional information that is required
by our customers to complete their automotive repair projects properly and safely.
The primary categories of product we offer in our stores include:
• Parts, including alternators, batteries, chassis parts, clutches, engines and engine parts, radiators, starters,
transmissions and water pumps;
• Accessories, including floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and
steering wheel covers;
• Chemicals, including antifreeze, freon, fuel additives and car washes and waxes;
• Oil and other automotive petroleum products; and
• Other miscellaneous offerings.
The product in our stores is generally arranged in a uniform and consistent manner based on standard store formats
and merchandise presentation. The parts inventory is generally located on shelves behind the customer service counter
with the remaining product, or front room merchandise, arranged on the sales floor to provide easy customer access,
maximum selling space and to prominently display high-turnover products and accessories to customers. We utilize aisle
displays to feature high-demand or seasonal merchandise, new items and advertised specials, including bilingual signage