AutoZone 2004 Annual Report Download - page 7
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Please find page 7 of the 2004 AutoZone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.togrowsalesand,atthesametime,toeducateourcustomersabouttheopportu-
nitytomaintaintheirvehicles,improvesafety,reducebreakdowns,increasefuel
efficiencyandreducetheriskoflarger,moreexpensiverepairslater.
Welaunchedanewadvertisingcampaign,“GetintheZone,”capitalizingonthe
strengthoftheAutoZonebrandname.Thispastyearwe’vesupplementedour
ongoingradiocampaignwithnewtelevisioncampaigns.Wecontinuetotrynew
thingsandchangethingsuptocatchourcustomers’attention.Inaddition,we
significantlyincreasedouradvertisingonSpanishlanguageradioandtelevision.
Howhavewefared?Simplyput,wonderfully.WehavetakenU.S.Retailsalesfrom
$4.1billionayeartoover$4.7billioninjust3years.Wenowhave3,420stores,as
ofAugust28,2004,inall48ContinentalUnitedStatesdeliveringwhathasbeen
andwillcontinuetobethecornerstoneofourbusiness:GreatCustomerService.
Today,wehavealmostdoubledthenumberofAutoZonerswithASEcertification
(AutomotiveServiceExcellence)inourstores,aswewillcontinuetofocusonhelp-
ingourcustomerscompletethejobright,thefirsttime,withtherightparts,atthe
rightprice!
Whilecontinuingtoutilizeradioandtelevisiontopromotethe“GetintheZone”
campaign,wehavealsobeguntoutilizecircularstoreachourcustomers.Wesigned
ontobecomethetitle-sponsoroftheNASCAR/AutoZoneEliteDivisionRacing
SeriestoreachadedicatedaudienceofDIYerswhotodayhelpmakethesportthe
secondmostwatchedsportontelevision.AutoZonewasproudtobecomethispast
yearthesponsoroftheAutoZoneLibertyBowlannualcollegefootballgame.
Wecontinuedtointroducemoreproprietaryproductlinesintoourstoreswherewe
feelwecancreatethesoledestinationforsomeofAmerica’smosttrustedautomotive
brands:Valucraft,Duralast,andDuralastGold.Theseintroductionshaveallowedus
toexpandourGood/Better/Bestproductassortmentacrossmoremerchandisecate-
gories,whileatthesametimeextendourpositionaspriceleaderintheindustry.
WehavebeguntorefreshourolderAutoZonestorestomakethemevenmoreproduc-
tiveprofitmachines.Theactofrefreshingstoresentailsnotonlyimprovementstothe
physicalappearance,italsocaninvolveresettingthemerchandiselayouttocreate
anopportunityforsimilarmerchandisecategoriestobelocatedincloseproximity.
Wehavealsointroducedourpay-on-scaninitiative(POS)andmadeprogresstoward
ourgoalofachieving100%AccountsPayabletoInventory,therebyreducingworking
capitaltiedupinthebusinessandallowingformoreinnovativeproductsinthe
storeswithareducedlevelofrisk.Today,ourAPtoInventoryratiositsat92%.
Wehavelearnedatremendousamount.Wewillnotstoptrying,andwewilllearn
fromourmistakesandcapitalizeonourwins.Wewillcontinuetokeepthepedal
downandneverjustdothesamethingoverandover.
SteveOdland
Chairman,President,andCEO
CustomerSatisfaction
3’04AnnualReport
“Thedefinitionof
insanityisdoingthe
samethingoverand
over,andexpecting
differentresults.”
—Attributedto
BenjaminFranklin