CarMax 2005 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2005 CarMax annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

GROWTH PLAN
■We resumed our growth plan at the end of fiscal 2002,
following a 2-year hiatus during which we focused on
improving sales and profits. At the end of fiscal 2005,
we had opened 25 superstores since resuming growth.
These newer stores represent more than 40% of our
total superstore base.
■We plan to open stores at an annual rate of approxi-
mately 15%-20% of our used car superstore base. In
the near term, the majority of our store openings will
be superstores in new mid-sized markets and satellite
superstores in existing markets.
■We define mid-sized markets as those with television
viewing populations ranging from 1 million to
2.5 million.These markets are the easiest to enter
from a real estate and advertising perspective, and
historically they are where we have experienced
the fastest store ramp-up and profitability.
■We are adding satellite stores both in under-served trade
areas in existing large markets and in established
mid-sized markets to increase market share. Satellite
stores are highly efficient because they are built
on smaller sites and require little-to-no
incremental advertising.
SOLID
GROWTH
OPPORTUNITY
BY FOCUSING ON USED CARS, CARMAX CAN GROW ORGANICALLY, UNRESTRAINED BY FRANCHISE
LAW OR MANUFACTURER RESTRICTIONS. AT THE END OF FISCAL 2005, WE HAD 58 USED CAR
SUPERSTORES IN 27 U.S. MARKETS, COVERING APPROXIMATELY 30% OF THE U.S. POPULATION. WE
BELIEVE THE COMBINATION OF CONTINUED GEOGRAPHIC EXPANSION AND MARKET SHARE GAINS
RESULTING FROM OUR CONSUMER-PREFERRED CONCEPT CAN FUEL GROWTH FOR YEARS TO COME.
6
FY94
124
7
18
29
33 35
FY95FY96FY97FY98 FY99 FY00 FY01 FY02
40
FY03
33
49
58
FY04 FY05 FY06 FY07
STORE EXPANSION
(Number of used car superstores)
14
CARMAX 2005 CORPORATE MANAGEMENT TEAM