O'Reilly Auto Parts 2004 Annual Report Download - page 12

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TWIN CARBS
O’Reilly Dual Market Strategy and Our Expanding Footprint
We maintained our strong growth in 2004 by adding 140 new stores to close the year with 1,249 stores in
19 contiguous states. Each O’Reilly Auto Parts store receives nightly delivery from one of our ten distri-
bution centers, allowing them daily access to over 100,000 stock keeping units (SKU’s). To achieve this
high level of service, each distribution center and store location is carefully planned. Along with the
opening of 140 new stores, we also relocated 26 existing stores. Repositioning existing stores into better
locations to maximize sales, continues to be a priority. We are committed to finding the best possible
location for each O’Reilly Auto Parts store in every community.
With years of strategic planning and hard work, we have continued to be successful with our
unmatched dual market strategy, with an approximate 50/50 mix of professional and do-it-yourself
(DIY) customers. Our commercial sales team has continued to work very hard throughout the year,
further understanding the needs of and building relationships with our professional installer customers.
Our store team members have provided the knowledgeable, outstanding level of service that our DIY
customers have come to rely on.
With the opening of our Atlanta distribution center in early spring, we will be able to reach several new
expansion markets. With our unique dual market strategy, we are able to successfully penetrate markets
that many of our competitors cannot. In smaller communities where some of our competitors might
struggle, we are able to succeed as we reach out to both local commercial and retail customers. Through
these efforts, we believe we have continued to grow market share in a challenging sales environment.
Our proven growth plan will remain the same for 2005. We will continue our expansion efforts by
opening 160 new stores, with a majority of those stores in the southeast to capitalize on our new
distribution center in Georgia and further utilize the distribution center we opened in Mobile, Alabama
in the summer of 2003.
10 O’REILLY AUTOMOTIVE
Ted Wise
Chief Operating Officer
and Co-President