CarMax 2013 Annual Report Download - page 4

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2 CarMax Fiscal 2013
Our Associates and Execution
One of the things that sets CarMax apart is a culture centered on valuing all associates. For the ninth
consecutive year, CarMax was named by FORTUNE magazine as one of its “100 Best Companies to Work
For.” We are committed to providing the environment, training and materials needed to develop deeply
engaged, highly skilled associates who are ready to embrace changes that elevate our success. To support
our store growth plans, we must equip associates to take leadership roles in new (and existing) stores and
support their career advancement. We’ve developed and updated management training, utilizing the practice
and application of techniques learned from our most successful associates. For the sixth consecutive year, we
were gratified to be named to TRAINING magazine’s Top 125, which recognizes companies that excel at
associate development.
Our associates are the driving force behind our successes in enhancing execution, reducing waste and
achieving process improvements that are central to the CarMax culture. Thanks to our associates’ efforts, we
have refined processes throughout our business, helping us better serve our customers as well as save time
and money. For example, we streamlined the vehicle transfer process to make it easier and faster to deliver
cars and we enhanced the in-store vehicle delivery process for customers. Our merchandising team also
continues to refine the information and processes that we employ at off-site auctions around the nation to
choose the right vehicles at the right prices and then send them to the right CarMax stores.
This year a team of associates also took on the challenge of adapting the CarMax model for smaller markets.
The smaller format stores could open the door to more locations within the U.S and also help us identify future
efficiencies and process improvements. The first of our small format stores opened in March 2013.
CarMax Cares
We created The CarMax Foundation almost ten years ago to enrich the communities where our associates live
and work by supporting non-profit organizations that promote education, youth leadership and wellness –
through direct grants, matching gifts, volunteer team-builders and donation drives. The Foundation also had a
record year in fiscal 2013. Annual grants totaled nearly $3.4 million, and The Foundation surpassed $15 million
in total giving since its formation. In addition, 100% of our locations participated in at least one volunteer team-
builder and we held a record 570 total events during fiscal 2013.
As CarMax has grown into a national company, The CarMax Foundation has looked for ways to support a
national issue. After reviewing feedback from associates, we selected children’s healthy living as a key focus
area for the future. We’ve made a three-year commitment to partner with KaBOOM! - a national non-profit
dedicated to saving play for America’s children. By providing funding, The Foundation’s partnership will join the
effort to give kids the childhood they deserve by bringing play to those who need it most. In addition, CarMax
associates across the country will contribute their time and effort to build creative playspaces.
Thank you
I could not be prouder to be a part of this growing team of dedicated and talented associates. Our success is
first and foremost due to them – to their drive, their hard work and the conviction that we are offering
consumers something they cannot get elsewhere. We are growing efficiently because our associates are
committed to continuously improving our execution. Our ability to make changes quickly and prepare for the
unexpected is one of the keys to our success; we remain a big company that hasn’t lost that small company
feel. Thanks again to all our associates for everything they do every day. And, I know I speak for us all in
saying how much we appreciate the continued support of our customers, communities and shareholders.
Tom Folliard
President and Chief Executive Officer
April 26, 2013