O'Reilly Auto Parts 2008 Annual Report Download - page 15

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ROAD TESTED. RESULTS DRIVEN.
O’REILLY AUTOMOTIVE 2008 ANNUAL REPORT PG.13
CONSOLIDATING
UNDER ONE BRAND
CSK operated under four brand names – Schuck’s, Kragen,
Checker and Murray’s – and over the next two years we will
consolidate all stores under the O’Reilly brand. We started the
conversion process with 185 stores in the Central United States.
To facilitate the immediate change of a store’s servicing
DC, we lift the inventory, reset the store fixtures and put in
new inventory, fully aligning the store’s merchandise section
with its new servicing DC. We replace the legacy POS
system with an O’Reilly POS system, which allows them to
be connected to our inventory control and replenishment
systems. We then re-open as an O’Reilly store within a week
of starting the extensive process.
As we open new DCs and update existing facilities to the
O’Reilly system, we will convert the stores they service. By
converting stores one servicing distribution area at a time,
we will break down the 1,300 store acquisitions into several
100 to 300 store blocks.
BEFORE AND AFTER
When we convert stores, we focus on creating professional parts
stores, enhancing store-specific hard-part assortments, and
eliminating non-core merchandise. These stores adopt O’Reilly’s
consistent layout with efficient, attractive front rooms and more
back-room space for hard parts.
2009
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2008
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2010
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2010
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RE-BRANDING TIMELINE
1. Convert Northern Plains, New Mexico,
El Paso and Chicago stores – all stores
in O’Reilly’s existing distribution reach
2. Convert Detroit, MI distribution center
3. Convert Michigan and Ohio stores
4. Seattle DC opens
5. Denver and Southern California DCs open
6. Utah DC open
7. Convert West Coast stores
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OPPORTUNITY