Advance Auto Parts 2010 Annual Report Download - page 23

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8
AI Segment
AI’s business primarily serves the Commercial market, with an emphasis on parts for imported cars, from its
store locations located throughout the Northeastern and Mid-Atlantic regions of the United States and Florida. 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 24,000 SKUs with access to an additional 100,000 SKUs through its supply chain and local sourcing
networks.
AI has significantly increased its store count since our acquisition of AI in September 2005. At January 1, 2011,
we operated 194 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 23
Delaware 1 New Hampshire 8 Rhode Island 4
Florida 38 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:
2010 2009 2008 2007 2006
Beginning Stores 156 125 108 87 62
New Stores 38 32 18 21 25
Stores Closed - (1) (1) - -
Ending Stores 194 156 125 108 87
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, 2011, we employed approximately 29,000 full-time Team Members and approximately 22,000
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.