Advance Auto Parts 2013 Annual Report Download - page 17

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4
Except where prohibited, we also provide a variety of services free of charge to our customers including:
• Battery & wiper installation;
• Battery charging;
• Check engine light reading;
• Electrical system testing, including batteries, starters, alternators and sensors;
• “How-To” video clinics;
• Oil and battery recycling; and
• Loaner tool programs.
Our stores are 100% company operated and are divided into three geographic areas. Each geographic area is managed by a
senior vice president, who is supported by regional and district management. District Leaders have direct responsibility for
store operations in a specific district, which typically consists of 12 stores. Depending on store size and sales volume, each
store is staffed by approximately 8 to 16 Team Members, under the leadership of a General Manager. Store Team Members are
comprised of full and part-time Team Members. A majority of our stores include at least two parts professionals, or parts pros,
who have an extensive technical knowledge of automotive replacement parts and other related applications to better serve our
Commercial and DIY customers. Many of our stores include bilingual Team Members to better serve our diverse customer
base. We offer training to all of our Team Members, including formal classroom workshops, e-learning and certification by the
National Institute for Automotive Service Excellence, or ASE. ASE is broadly recognized for training certification in the
automotive industry.
Commercial Sales. Our Commercial sales consist of sales to both our walk-in and delivery customers, which represented
approximately 37.2% of our AAP sales in Fiscal 2013. Since 2000, we have aggressively expanded our sales to Commercial
customers through our Commercial delivery program. For delivered sales, we utilize our Commercial delivery fleet to deliver
product from our store locations to our Commercial customer's places of business, including independent garages, service
stations and auto dealers. Our stores are supported by a Commercial sales team which is dedicated to the development of our
national, regional and local Commercial customers. Our Commercial sales management is closely aligned with our store
management as part of our overall integrated store operation.
Since 2008, we have concentrated a significant amount of our investments on increasing our Commercial sales at a faster
rate in light of the favorable market dynamics. We have added key product brands in our stores that are well recognized by our
Commercial customers and have increased the number of parts professionals, delivery trucks and other support services to
serve those customers. In 2012, we added eService offerings to our Commercial customers, including online training solutions,
fully searchable, diagnostic and repair resources and online marketing services which are available on a subscription basis. We
believe these investments and the commitment to consistent delivery times and order accuracy will enable us to gain more
Commercial customers as well as increase our sales to existing customers who will use us as their “first call” supplier. As of
December 28, 2013, 3,485 AAP stores, or 90.9% of total AAP stores, had Commercial delivery programs.
Store Development. Our store development program has historically focused on adding new stores within existing
markets where we can achieve a larger presence, remodeling or relocating existing stores and entering new markets. The
addition of new stores, along with strategic acquisitions, has played a significant role in our growth and success. We believe the
opening of new stores, and their strategic location in relation to our DIY and Commercial customers, will continue to play a
significant role in our future growth and success.
We open and operate stores in both large, densely populated markets and small, less densely populated areas. We complete
substantial research prior to entering a new market. Key factors in selecting new site and market locations include population,
demographics, vehicle profile, number and strength of competitors' stores and the cost of real estate.