AutoZone 1999 Annual Report Download - page 5

ALLDATA continues to make major strides as the leading
provider of electronic diagnostic and repair information. To
see the latest venture, cast your browser out to
www.alldatadiy.com. There, youÕll see the first generation of
AutoZoneÕs web commerce. Launched in June, this site offers
ALLDATAÕs world-class diagnostic and repair information on a
paid subscription basis to anybody with Internet access. A link
on AutoZoneÕs home page directs our customers to this new
and exciting addition to the information superhighway.
WeÕll continue to find ways to improve and enhance these
other ventures. But the thing weÕre most looking forward to
in FY00 is the opportunity to really focus on what we do best
Ð selling auto parts. With the acquisitions and conversions
behind us, our core domestic business will get the bulk of our
attention. And the energy that went into completing the
rigorous conversion schedule can now be directed toward
the principles that made us the industry leader - things like
our enduring culture, our cutting-edge store development
concepts, our passion for providing the best parts and our
famous customer service.
That focus on the core business is reflected in this annual
report. Our 20th birthday created a terrific opportunity to
talk about the basic ideas on which we were founded. Ideas
that were so fundamentally right for our business back in
1979 that 20 years later, theyÕre still the guiding principles
for all 40,483 AutoZoners. TheyÕre absolutely what it takes
to keep us in the clear-cut lead and to carry us miles (or
kilometers) into the future.
John Adams Tim Vargo
Chairman & CEO President & COO
Customer Satisfaction Customer Satisfaction
Bruce has vast experience in retail systems, most recently as
CIO and senior vice president for Brylane, Inc. Ð a consumer
catalog business which includes Lane Bryant and ChadwickÕs
of Boston. Bruce will be responsible for furthering our
competitive edge in the evolving field of technology.
Joe Fabiano was brought in as chief people officer and
senior vice president, human resources, customer satisfaction.
JoeÕs extensive experience in domestic and international
human resources management includes time as vice president,
human resources for Tricon Global Restaurants and senior vice
president, human resources for Gruma Corporation. JoeÕs
focus will be on making AutoZone the employer of choice in
all of retailing.
AutoZoneÕs stock repurchase program, which was first
announced in January 1998, was significantly increased during
FY99. At the end of the fiscal year, our board had approved
$400 million of company stock to be repurchased, dating
back to the initial announcement. We closed out the year with
over $260 million of stock already repurchased and another
$100 million under contract to buy. We consider this ongoing
program to be a wise investment.
Outside of the auto parts business, FY99 was a year of
visible progress for our other businesses, as well.
At TruckPro, we introduced a fantastic new store design
which includes some retail concepts that have proven
successful in our AutoZone stores. It features an updated
logo, better in-store signage and a larger sales floor. Most
importantly, weÕve expanded the selection. The new layout
offers our heavy-duty customers a much greater selection of
parts and accessories. WeÕve updated 23 stores with the new
look. We also incorporated the changes in the three new
TruckPro stores opened last year, bringing the store count to
46. So far, our heavy-duty customers have responded
favorably, and plans are to convert the remaining stores as
soon as itÕs feasible.
95 97
After Tax Return
On Average Equity
96
23% 22%
20%19% 19%
98 99
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