Automotive Parts & Accessories Stores
Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate physical retail establishments that sell new, used, and/or repaired automobile parts and accessories, as well as repair and install automotive accessories. Major companies include Advance Auto Parts, AutoZone, and The Pep Boys (all based in the US), as well as ATU (Germany); AUTOBACS SEVEN and Yellow Hat (Japan); Halfords Group (UK); and Supercheap Auto (Australia).
Demand for automobile parts is driven by the age and mileage of vehicles in use and generally increases when fewer new cars are sold and older cars are kept on the road longer. The profitability of individual companies depends largely on inventory management and marketing. Large companies have economies of scale in purchasing and distribution. Small companies can compete effectively by carrying specialized parts or providing extra services such as fast delivery. The US industry is concentrated: the 50 largest companies generate about 60% of industry revenue. The four largest companies account for about 50% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
New and rebuilt auto parts account for a significant amount of retail sales (48%), including auto supplies and accessories (17%), auto batteries (8%), and auto lubricants (7%). Because products are used on vehicles after their original sale, the industry is considered part of the motor vehicle aftermarket. Products are sold to two main groups of customers. Do-it-yourself (DIY) customers are consumers who work on their own cars; do-it-for-me (DIFM) customers include commercial installers such as...
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook