Advance Auto Parts 2012 Annual Report Download - page 14

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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 Northeastern, Mid-Atlantic and Southeastern regions of the United States. 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 premium parts, expert 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 30,000 SKUs through routine replenishment from its supply
chain with access to an additional 100,000 to 120,000 SKUs through local sourcing networks.
AI has significantly increased its store count since our acquisition of AI in September 2005. At December 29, 2012, we
operated 218 stores under the “Autopart International” trade name in the following states:
Location
Number of
Stores Location
Number of
Stores Location
Number of
Stores
Alabama 1 Maryland 12 Ohio 2
Connecticut 17 Massachusetts 31 Pennsylvania 21
Delaware 1 North Carolina 4 Rhode Island 4
DC 1 New Hampshire 8 South Carolina 1
Florida 47 New Jersey 18 Vermont 1
Georgia 4 New York 30 Virginia 11
Maine 4
The following table sets forth information concerning increases in the total number of our AI stores:
2012 2011 2010 2009 2008
Beginning Stores 202 194 156 125 108
New Stores 21 9 38 32 18
Stores Closed (5) (1) — (1)(1)
Ending Stores 218 202 194 156 125
Seasonality
Our business is somewhat seasonal in nature, with the highest sales usually 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 22, 2013, we employed approximately 31,000 full-time Team Members and approximately 24,000 part-time
Team Members. Our workforce consisted of 90% of our Team Members employed in store-level operations, 6% employed in
distribution and 4% employed in our corporate offices. We have never experienced any labor disruption. 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,” “Autopart International,” “DriverSide,” “MotoLogic” and “Service is our best part,” for use in
connection with the automotive parts retailing business. In addition, we own and have registered a number of trademarks for
our private label brands. We believe that these trade names, service marks and trademarks are important to our merchandising
strategy. We do not know of any infringing uses that would materially affect the use of these trade names and marks, and we
actively defend and enforce them.