CarMax 2014 Annual Report Download - page 4

CarMax Fiscal 2014 2
Smart Growth and Associate Engagement
As we continue to grow, we know it’s essential to be smart about how we grow. We remain committed to the
CarMax culture of continuous improvement. During fiscal 2014, we began testing a small format store,
designed to allow us to economically enter smaller markets. The small format store also represents an ideal
environment in which to test and develop more efficient ways of buying and selling vehicles. We opened our
first two small format stores in Harrisonburg, Virginia and Jackson, Tennessee. In these stores, our focus on
teamwork is particularly important, as associates handle multiple aspects of a customer’s transaction. In the
small format environment and elsewhere throughout the company, we continue to search for scalable solutions.
We are delighted to have been named by Fortune magazine as one of its “100 Best Companies to Work For”
for the tenth consecutive year. This honor is a testament to our continuous focus on a culture of integrity,
diversity and respect, where associates have the opportunity to build fulfilling careers. Comprehensive and
relevant training – online and in a classroom setting – are key to CarMax’s success. For the seventh
consecutive year, CarMax was named to Training magazine’s Top 125, which recognizes organizations that
provide extraordinary employer-sponsored workforce training and development programs. We are very proud
of programs like the recently introduced Summit, which immerse entry-level managers into leadership
development by having them work closely with other experienced managers. Not only does the program teach
managers specific skills, it also incorporates nonprofit community service into the workshop.
CarMax Cares
Giving back to the communities in which we live and work is an integral part of the CarMax culture, and in fiscal
2014, The CarMax Foundation celebrated 10 years of making a positive impact in our communities.
Established in 2003, the Foundation has evolved and expanded, and it had another record year in fiscal 2014.
Annual grants totaled $4.7 million, and the Foundation surpassed $19 million in total giving since its formation.
In addition, 100% of our locations organized at least one volunteer team builder and we held a record 729 total
volunteer events during fiscal 2014.
As we grow and enter new markets, it’s important to demonstrate that CarMax will be an active and giving
member of our new communities. The Foundation partners with the leadership teams in new stores to help
them organize community volunteer projects before the store even opens. In fiscal 2014, more than 165
associates in newly opened stores participated in volunteer events prior to the grand opening of their location.
Recently, CarMax associates identified Children’s Healthy Living as the Foundation’s national focus. This year
we committed to a three-year, $4.1 million partnership with the nationally recognized non-profit KaBOOM!.
This organization targets communities in need of safe, accessible places for children to play, with the goal of
ensuring that all children get the balance of active play they need to become healthy and successful adults.
KaBOOM! doesn’t just build playgrounds, it empowers, connects and strengthens communities. CarMax is
proud that our partnership to fund and build 30 playgrounds (7 of which were completed in fiscal 2014) will
impact more than 100,000 children.
Thank you
CarMax has a tremendous opportunity for growth in the years to come. We’re currently in markets that
comprise less than 60% of the U.S. population, and in many of those markets we’re not yet fully stored.
Evolution and innovation are critical to our long-term competitive position, so we’re continuously refining our
business model and continuously getting better. But it is the engagement and skill of our associates that will
ultimately drive our success. Once again this year, let me take this opportunity to thank each and every one of
our more than 20,000 associates for everything they do every day to support and drive our future. And, we
also thank all our customers, communities and shareholders for their support and confidence in CarMax.
Tom Folliard
President and Chief Executive Officer
April 25, 2014