Advance Auto Parts 2015 Annual Report Download - page 21

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8
square feet. We have recently begun the integration of the Advance Auto and Carquest supply chains in addition to optimization
work throughout our entire supply chain. In 2016, we plan to close one distribution center in Sutton, MA and open one new
Worldpac distribution center in the greater Dallas, TX area. We have also announced our plans to open a new distribution center
in the greater Nashville, TN area in 2017.
In 2015, we implemented technology that has furthered our ability to roll out daily replenishment to the stores served by
our Advance Auto Parts distribution centers. We will continue to expand our daily replenishment capabilities to our other
distributions centers, while also leveraging our in-market HUB stores to further increase the speed and efficient utilization of
our distribution network. Worldpac will continue to provide cross-sourcing to our Advance Auto Parts and Carquest stores.
Marketing & Advertising. Our marketing and advertising program is designed to drive brand awareness, consideration and
omni-channel traffic by positioning Advance Auto Parts as the leader in parts availability and project support within the
aftermarket auto parts category. We strive to exceed our customers' expectations end to end through a comprehensive online
experience, extensive parts assortment, speed at the parts counter and our DIY customer loyalty program, Speed Perks.
The current campaign was developed based on extensive research with our customers. The campaign targets core DIY
customers and emphasizes our understanding of what motivates their passion to work on cars. It is built around a multi-channel
communications plan which brings together radio, television, direct marketing, mobile and social media and in-store and event
signage directed to both our general market and Hispanic and Latino customers.
We also have Commercial programs that are designed to build loyalty with our Commercial customers who rely on us for
quality products and services each and every day so they can in turn successfully serve their customers. In addition to various
loyalty and rebate programs, we offer dedicated training support and other eServices to our Commercial customers, including:
TECH-NET Professional Auto Service® - is our marketing solutions program offered to the commercial shop owner to help
them attract and retain customers by having consistent branding, banner programs and solutions for attracting automotive
technicians and other technical resources.
CARQUEST Technical Institute® (CTI) - offers our valued customers the tools and training to stay ahead of an increasingly
competitive and fast-changing marketplace. We target service facility owners, shop managers, service consultants and
professional technicians. CTI instructors have over 350 ASE certifications and understand the technical skills required to be
productive and profitable and reach over 25,000 technicians annually.
MotoShop - is a technology solution portfolio consisting of a suite of electronic tools that supports our Commercial customers
with: (i) online marketing solutions, (ii) fully searchable diagnostic and repair service resources, (iii) online shop tech training
and (iv) a shop management system.
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. Our fourth quarter is generally our most volatile as weather and spending trade-
offs typically influence our Commercial and DIY sales.
Team Members
As of February 26, 2016, we employed approximately 40,000 full-time Team Members and approximately 33,000 part-
time Team Members. Our workforce consisted of 86% of our Team Members employed in store-level operations, 10%
employed in distribution and 4% employed in our corporate offices. As of February 26, 2016, less than 1% of our Team
Members were represented by labor unions. We have never experienced any labor disruption. We believe that our Team
Member relations are solid.