Automotive Parts & Accessories Stores
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 (both based in Japan); Halfords Group (UK); and Supercheap Auto (Australia).
The global automotive industry is expected to experience healthy growth over the next several years, due largely to economic expansion in emerging markets. The global light duty vehicles market is expected to grow to $922.21 billion by 2025, according to Grand View research. The US, Germany, China, Mexico, and France are the top auto part importing country, according to Worlds Top Exports. Mature economies in North America and Europe will likely grow but at a much slower pace than emerging markets.
The US automobile parts retail industry includes about 38,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $57 billion.
The industry includes retailers of new and used automobile parts. Some large retailers also distribute auto parts. Tire wholesalers and tire dealers, which are not part of the industry, are covered in separate profiles.
Competitive Landscape
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.
Competitors include national, regional, and local auto parts chains, independently owned parts stores, online parts stores, wholesale distributors, jobbers, repair shops, car washes, and auto dealers, as well as mass merchandise stores, hardware stores, supermarkets, and convenience stores.
Autonomous vehicles (aka driverless cars) pose a potential long-term threat to auto parts retailers because they may drastically reduce the number of auto accidents: Consulting firm McKinsey predicts that driverless cars could reduce US auto accidents by 90%, thereby requiring far fewer repairs. Commercial customers, including auto repair shops, have become a significant source of sales for some auto parts stores. Amazon is a looming long-term threat to auto parts retail stores and to the industry's above-average margins.
Products, Operations & Technology
Automotive parts and supplies account for about 80% of the industry sales, including new and rebuilt auto parts. Other services include auto accessories
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Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms