CarMax 2012 Annual Report Download - page 3

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CarMax 2012 2
it has had a dramatic impact on the way we develop sales
associates at CarMax. We have received excellent feedback
from associates on how the skills they learn and practice help
them connect better with customers and execute
more consistently.
Associates regularly log on to KMX University, our learning
management program, to, among other things, launch online
courses, register for classroom training and print self-paced
training workshops. We also offer classes through CarMax’s
College of Continuous Learning, where company leaders
help facilitate classes that teach technical skills, competency
development and business-specific concepts.
DRIVING EXECUTION
At CarMax, we are dedicated to offering world-class
customer service. For our retail customers, a critical element
of superior service is to provide a convenient and informed
shopping experience. For most CarMax customers, this means
visiting www.carmax.com. Every year we make significant
steps forward in improving the usability and expanding the
content on our website. As a result, we currently estimate
that more than 70% of customers who buy a vehicle from us
visit our website first and approximately 30% elect to transfer
a vehicle from one store to a more convenient location. Traffic
and leads also continue to grow rapidly on our user-friendly
mobile application, launched in 2010.
the customer experience. We call it Building a Better CarMax
and it means developing our associates, driving execution
and discovering efficiencies that allow us to reduce waste
throughout our organization.
DEVELOPING ASSOCIATES
Associate development has always been a fundamental
element of CarMax’s success, and for the eighth consecu-
tive year CarMax has been named by FORTUNE magazine
as one of its “100 Best Companies to Work For.” We know
that a concentration on development helps us attract and
retain well-qualified employees and then challenges them
to continue to grow. By creating a comfortable workplace
environment where associates are inspired to do their best
everyday and where they enjoy what they do, we know
they will support our efforts to innovate and look for
new ways to enhance our customers’ experience.
For the fifth consecutive year, we were pleased to be named
to TRAINING magazine’s Top 125, which recognizes companies
that excel at associate development. During fiscal 2012,
CarMax launched and expanded a number of important
training and assessment initiatives. Professional Selling
Principles, a key training program for CarMax, continues to
mature and build throughout the organization. Based on
actionable training and techniques utilized by our most
successful salespeople, as well as a Culture of Daily Practice,
Total Revenues
(in billions)
$8.20
$10.00
$6.97
$7.47
$8.98
12
11
10
09
08
357,129
345,465
377,244
408,080
396,181
12
11
10
09
08
Used Vehicles Sold
12
11
10
09
08
$277.8
$55.2
$177.5
$413.8
Net Earnings
(in millions)
$377.5
Return on Invested Capital (unleveraged, excluding non-recourse debt)
11.8%
4.0%
9.7%
14.1%
14.4%
12
11
10
09
08
(16)
10
3
1
1
Comparable Store Used Unit Sales
(percentage change)
12
11
10
09
08