O'Reilly Auto Parts 2007 Annual Report Download - page 5

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automotive aftermarket business. We are
confident that the American consumer will
adjust to economic pressures and that miles
driven will be a positive contributor to demand
over the long term. Over the past several years,
the average age of the vehicle population in
the United States, for both cars and light
trucks, has seen significant increases. We
expect that these increasing vehicle age trends
will continue due to the higher quality level
of the drive trains and key interior and exterior
components in newer vehicles. These higher-
mileage vehicles go through more routine
maintenance and repair cycles and represent
a significant driver of demand for our products.
We are uniquely positioned to capitalize
on the growth of the automotive aftermarket
industry because of our time-tested,
dual-market strategy that is unmatched by
any of our competitors. This core competency
enables us to take advantage of growth in
demand in both the DIY and the DIFM sides
of our business and contributes to our consistent
financial performance, particularly during
these difficult economic conditions. Our
ability to execute our dual-market strategy
is the result of over 50 years of experience
and a sustained commitment to building
relationships, by providing our customers
with the best parts availability in the
business through an expansive network of
14 distribution centers supported by over
100 master inventory stores. Our competitive
advantage in distribution is amplified by our
sophisticated inventory management systems
that customize the product assortment
stocked at each store based upon market
demand and vehicle registration data. Our
ability to equip our highly-trained professional
parts people with timely access to the parts
our customers need translates into consistent
customer satisfaction and loyalty.
Building upon our proven dual-market
strategy, we are planning to continue our
aggressive growth in 2008 and have
established a goal of opening 205 new stores.
Store growth in 2008 will follow our strategy
of concentrating new store openings in
contiguous geographic markets, enabling us
to quickly leverage our distribution, operating
and advertising investment. In 2008, we will
open our 15th distribution center in Lubbock,
Texas, providing capacity for further growth
Our 14 distribution centers are staffed by over 3,300 dedicated team members
who fill over 400,000 orders each day. When a customer requests a hard-to-find
part, it is immediately picked and delivered to the store within 24 hours.
1993
O’Reilly went public and began offering
stock on the NASDAQ market under the
symbol ORLY at $17.50 per share.
1996
O’Reilly opened our 200th store in
St. Joseph, Mo.
1993
O’Reilly opened our second distribution
center in Kansas City, Mo.
1983
O’Reilly Automotive reaches its
25 anniversary with 37 stores in
Missouri and the Ozarks.
3