AutoZone 2014 Annual Report Download - page 78

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public sector accounts in the United States, Puerto Rico and Mexico. As a part of the domestic store program, we
offer credit and delivery to our customers, as well as online ordering through www.autozonepro.com. Through our
hub stores, we offer a greater range of parts and products desired by professional technicians. We have dedicated
sales teams focused on independent repair shops as well as national, regional and public sector commercial
accounts.
Store Operations
Store Formats
Substantially all AutoZone stores are based on standard store formats, resulting in generally consistent
appearance, merchandising and product mix. Approximately 85% to 90% of each store’s square footage is selling
space, of which approximately 40% to 45% is dedicated to hard parts inventory. The hard parts inventory area is
generally fronted by counters or pods that run the depth or length of the store, dividing the hard parts area from
the remainder of the store. The remaining selling space contains displays of maintenance, accessories and non-
automotive items.
We believe that our stores are “destination stores,” generating their own traffic rather than relying on traffic
created by adjacent stores. Therefore, we situate most stores on major thoroughfares with easy access and good
parking.
Store Personnel and Training
Each store typically employs from 10 to 16 AutoZoners, including a manager and, in some cases, an assistant
manager. We provide on-the-job training as well as formal training programs, including an annual national sales
meeting, regular store meetings on specific sales and product topics, standardized training manuals and a
specialist program that provides training to AutoZoners in several areas of technical expertise from the Company,
our vendors and independent certification agencies. All AutoZoners are encouraged to complete tests resulting in
certifications by the National Institute for Automotive Service Excellence (“ASE”), which is broadly recognized
for training certification in the automotive industry. Training is supplemented with frequent store visits by
management.
Store managers, sales representatives, commercial sales managers, and managers at various levels across the
organization receive financial incentives through performance-based bonuses. In addition, our growth has
provided opportunities for the promotion of qualified AutoZoners. We believe these opportunities are important to
attract, motivate and retain high quality AutoZoners.
All store support functions are centralized in our store support centers located in Memphis, Tennessee; Monterrey,
Mexico; Chihuahua, Mexico and Sao Paulo, Brazil. We believe that this centralization enhances consistent
execution of our merchandising and marketing strategies at the store level, while reducing expenses and cost of
sales.
Store Automation
All of our stores have Z-net, our proprietary electronic catalog that enables our AutoZoners to efficiently look up
the parts that our customers need and to provide complete job solutions, advice and information for customer
vehicles. Z-net provides parts information based on the year, make, model and engine type of a vehicle and also
tracks inventory availability at the store, at other nearby stores and through special order. The Z-net display
screens are placed on the hard parts counter or pods, where both the AutoZoner and customer can view the screen.
Our stores utilize our computerized proprietary Store Management System, which includes bar code scanning and
point-of-sale data collection terminals. The Store Management System provides administrative assistance and
improved personnel scheduling at the store level, as well as enhanced merchandising information and improved
inventory control. We believe the Store Management System also enhances customer service through faster
processing of transactions and simplified warranty and product return procedures.
10-K