AutoZone 2010 Annual Report Download - page 99

existing market areas and attempt to cluster development in markets in a relatively short period of time. In
addition to continuing to lease or develop our own stores, we evaluate and may make strategic acquisitions.
Purchasing and Supply Chain
Merchandise is selected and purchased for all stores through our store support centers located in Memphis,
Tennessee and Monterrey, Mexico. In fiscal 2010, no class of similar products accounted for 10 percent or more
of our total sales. Also, during fiscal 2010, one vendor supplied 10 percent of our purchases; no other individual
vendor provided more than 10 percent of our total purchases. We generally have few long-term contracts for the
purchase of merchandise. We believe that we have good relationships with our suppliers. We also believe that
alternative sources of supply exist, at similar cost, for most types of product sold. Most of our merchandise flows
through our distribution centers to our stores by our fleet of tractors and trailers or by third-party trucking firms.
Our hub stores have increased our ability to distribute products on a timely basis to many of our stores and to
expand our product assortment. A hub store generally has a larger assortment of products as well as regular
replenishment items that can be delivered to a store in its coverage area within 24 hours. Additionally, hub stores
can provide replenishment of products sold to stores within its network. Hub stores are generally replenished from
distribution centers multiple times per week.
Competition
The sale of automotive parts, accessories and maintenance items is highly competitive in many areas, including
name recognition, product availability, customer service, store location and price. AutoZone competes in both the
retail DIY and commercial do-it-for-me (“DIFM”) auto parts and products.
Competitors include national, regional and local auto parts chains, independently owned parts stores, on-line parts
stores, jobbers, repair shops, car washes and auto dealers, in addition to discount and mass merchandise stores,
department stores, hardware stores, supermarkets, drugstores, convenience stores and home stores that sell
aftermarket vehicle parts and supplies, chemicals, accessories, tools and maintenance parts. AutoZone competes
on the basis of customer service, including the trustworthy advice of our AutoZoners; merchandise quality,
selection and availability; price; product warranty; store layouts, location and convenience; and the strength of our
AutoZone brand name, trademarks and service marks.
Trademarks and Patents
We have registered several service marks and trademarks in the United States Patent and Trademark office as well
as in certain other countries, including our service marks, “AutoZone” and “Get in the Zone,” and trademarks,
“AutoZone,” “Duralast,” “Duralast Gold,” “Valucraft,” “ALLDATA,” “Loan-A-Tool” and “Z-net.” We believe
that these service marks and trademarks are important components of our marketing and merchandising strategies.
Employees
As of August 28, 2010, we employed over 63,000 persons, approximately 56 percent of whom were employed
full-time. About 91 percent of our AutoZoners were employed in stores or in direct field supervision,
approximately 5 percent in distribution centers and approximately 4 percent in store support and other functions.
Included in the above numbers are approximately 3,000 persons employed in our Mexico operations.
We have never experienced any material labor disruption and believe that relations with our AutoZoners are
generally good.
AutoZone Website
AutoZone’s primary website is at http://www.autozone.com. We make available, free of charge, at our investor
relations website, http://www.autozoneinc.com, our annual report on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d)
of the Securities and Exchange Act of 1934, as amended, as soon as reasonably feasible after we electronically file
such material with, or furnish it to, the Securities and Exchange Commission.
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10-K