AutoZone 2004 Annual Report Download - page 8

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*2004/2005฀AAIA฀Factbook
Our฀goal฀continues฀to฀be฀to฀optimize฀shareholder฀value.฀We฀started฀three฀years฀฀
ago฀with฀a฀Return฀on฀Invested฀Capital฀(ROIC)฀of฀13%,฀and฀I’m฀proud฀to฀tell฀our฀
shareholders฀we฀finished฀2004฀at฀over฀25%.฀
Commercial:฀continued฀significant฀growth฀opportunities฀
The฀other฀part฀of฀the฀vehicle฀repair฀and฀maintenance฀business฀is฀the฀Commercial฀฀
or฀Do-It-For-Me฀(DIFM)฀market.฀This฀market฀is฀estimated฀by฀the฀AAIA฀to฀be฀over฀
$47฀billion฀annually*,฀and฀growing฀at฀a฀five-year฀compound฀annual฀growth฀rate฀of฀
4.5%.*฀AutoZone฀is฀far฀newer฀to฀this฀market฀than฀the฀DIY฀segment,฀and฀has฀grown฀
its฀revenues฀to฀approximately฀$750฀million฀annually฀from฀over฀$400฀million฀back฀฀
in฀2001!฀
We฀expanded฀the฀program฀from฀1,400฀stores฀back฀in฀2001฀to฀over฀2,200฀stores฀today.฀
We฀hired฀Commercial฀Specialists฀in฀our฀stores฀dedicated฀to฀our฀professional฀techni-
cian฀customers฀to฀help฀them฀with฀their฀needs.
We฀hired฀an฀outside฀sales฀force฀of฀about฀150฀AutoZoners฀to฀call฀on฀both฀current฀and฀
prospective฀professional฀customers฀to฀expand฀selling฀opportunities.฀
We฀developed฀118฀Hub฀stores฀and฀connected฀them฀to฀our฀satellite฀network฀over฀฀
the฀last฀3฀years฀in฀order฀to฀fulfill฀the฀critical฀parts฀needs฀of฀both฀our฀DIFM฀and฀DIY฀
customers.฀These฀stores฀allow฀us฀to฀provide฀the฀most฀expeditious฀delivery฀of฀quality฀
parts฀to฀replenish฀satellites฀and฀to฀service฀repair฀technicians.฀
We฀created฀strategic฀alliances฀with฀large฀Commercial฀customers฀who฀have฀recognized฀
the฀critical฀advantages฀AutoZone฀has฀in฀this฀sector:฀a฀national฀store฀footprint,฀an฀
extensive฀parts฀selection,฀a฀speedy฀30-minute฀or฀less฀delivery฀window,฀and฀consis-
tent,฀low฀prices฀on฀parts฀across฀the฀entire฀country.
Finally,฀we฀have฀ALLDATA.฀It฀is฀the฀premier฀provider฀of฀automotive฀diagnostic฀and฀
repair฀information฀to฀the฀professional฀technician.฀With฀over฀50,000฀subscribers฀
today,฀and฀an฀opportunity฀to฀expand฀the฀offering฀into฀a฀full฀suite฀of฀service฀products,฀
this฀software฀provides฀us฀a฀valuable฀competitive฀advantage฀in฀the฀continued฀devel-
opment฀of฀this฀professional฀installer฀market.
Members฀of฀the฀CEO฀team฀
make฀it฀all฀happen
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