O'Reilly Auto Parts 2009 Annual Report Download - page 8

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Western Expansion
O’Reilly Automotive 2009 Annual Report
6
Our mission is to be the dominate supplier of auto parts
in the markets we serve. We accomplish this by executing
our dual-market strategy – serving the automotive needs of
both do-it-yourselfer customers and professional installers.
The acquisition of CSK gives us the springboard to expand
this proven strategy into the western half of the United
States and enables us to help thousands of new customers
repair and maintain their vehicles.
Investing in our people and the tools they need to
provide top-notch customer service is the catalyst that
drives our dynamic and profitable growth. Our professional
parts people are dedicated to ensuring customers have
everything they need to get the job done when they leave
our stores. Our “Never Say No,” price match programs, and
our in-house Customer Service Department help our team
members make sure we provide our customers with a one-
stop shopping experience for their automotive needs. This
attention to service helps us maintain customer loyalty and
build customer referrals.
Texas 521
California 477
Missouri 177
Georgia 143
Washington 139
Arizona 129
Tennessee 129
Illinois 125
Oklahoma 109
Alabama 105
Minnesota 100
Arkansas 96
Colorado 87
Louisiana 80
North Carolina 77
Indiana 74
Mississippi 71
Michigan 67
Iowa 65
Kansas 65
Ohio 63
Wisconsin 55
Utah 54
Kentucky 54
South Carolina 50
Nevada 45
Oregon 42
New Mexico 38
Florida 32
Idaho 30
Nebraska 29
Montana 23
Wyoming 16
North Dakota 12
Alaska 11
Hawaii 11
South Dakota 11
Virginia 9
Stores in each state
O’Reilly’s Market Reach
With stores in 38 states, O’Reilly is expanding our consistent, proven
approach of growing market share and gaining new customers. Our goal
is to be the dominant supplier of auto parts in the markets we serve.
Distribution Centers
Market Consolidation Opportunity
The largest suppliers in the automotive aftermarket
make up a relatively small percentage of the
overall market, even after several years of steady
consolidation. We continue to opportunistically
pursue strategic acquisitions to take advantage
of further market consolidation.
Remaining Market 62%
General Parts/NAPA 3%
General Parts Inc./Carquest 5%
O’Reilly Auto Parts 9%
Advanced Auto Parts 9%
Autozone 12%
Market Factors
The fundamental drivers in our industry remain strong. During challenging
economic conditions, our customers are more willing to maintain and repair
their current vehicle rather than purchase a new vehicle. This increase in the
average age of vehicles on the road drives demand for our products.
251
MILLION
Vehicle Population
2.9
TRILLION
Miles Driven
10
YEARS
Average Age
of Vehicles
Acquired CSK
3,421 STORES
in 38 states