About AutoZone

AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the Americas. The company operates stores in the United States (U.S.), Mexico and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. In the company's domestic stores, as well as the majority of its stores in Mexico and Brazil, the company has a commercial sales program that provided commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. The company also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and its commercial customers can make purchases through www.autozonepro.com. The company sells the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. The company also provides product information on its Duralast branded products through www.duralastparts.com. Store Operations All store support functions are centralized in the company's store support centers located in Memphis, Tennessee; Monterrey, Mexico; Chihuahua, Mexico and Sao Paulo, Brazil. Commercial The company's commercial sales program operates in a highly fragmented market, and the company is a leading distributor of automotive parts and other products to local, regional and national repair garages; dealers; service stations; and public sector accounts in the Americas. As part of its program, the company offers credit and delivery to its customers, as well as online ordering through www.autozonepro.com or through the AutoZone Pro smartphone application. Through its hub and mega hub stores, the company offers a greater range of parts and products desired by professional technicians. It has dedicated sales teams focused on independent repair shops, as well as national, regional and public sector commercial accounts. Marketing and Merchandising Strategy Customer Service Customer service is the most important element in the company's marketing and merchandising strategy, which is based upon consumer marketing research. The company's electronic parts catalog assists in the selection of parts, as well as identifying any associated warranties offered by it or its vendors. In addition to its in-store offerings, the company sells automotive hard parts, maintenance items, accessories and non-automotive parts through www.autozone.com, for pick-up in store or to be shipped directly to a customer's home or business, with next day or same day delivery programs in most of its U.S. markets. Additionally, the company offers a smartphone application that provides customers with store locations, driving directions, operating hours, product availability, the ability to purchase products and other information. The company also provides specialty tools through its suite of free services. Through the company's Loan-A-Tool program customers can borrow a specialty tool, such as a steering wheel puller, for which a do-it-yourself (DIY) customer or a repair shop would have little or no use other than for a single job. AutoZoners also provide free diagnostic and related services, including check engine and anti-lock braking system light readings through the company's AutoZone Fix Finder service, testing of starters, alternators and batteries, battery charging and the collection of used oil for recycling. Merchandising Types of products the company sells by major category of items: Failure: A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, cv axles, engines, fuel pumps, fuses, ignition, lighting, mufflers, radiators, starters and alternators, thermostats, tire repair, and water pumps. Maintenance: Antifreeze and windshield washer fluid; brake drums, rotors, shoes and pads; chemicals, including brake and power steering fluid, oil and fuel additives; oil and transmission fluid; oil, cabin, air, fuel and transmission; filters; oxygen sensors; paint and accessories; refrigerant and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Discretionary: Air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, towing, and wash and wax. Each store carries the same basic products, but the company tailors its hard parts inventory to the makes and models of the vehicles in each store's trade area, and its sales floor products are tailored to the local store's demographics. The company's hub stores (including mega hubs, which carry an even broader assortment) carry a larger assortment of products that are delivered to local satellite stores. Brand Marketing: Marketing and Loyalty The company utilizes advertising, direct marketing, loyalty programs and promotions primarily to highlight its great value, the availability of high quality parts and develop a relationship with an expanding base of customers. Digital and broadcast media are its primary advertising methods of driving retail traffic, while the company leverages a dedicated sales force and its ProVantage loyalty program to drive commercial sales. Purchasing and Supply Chain Merchandise is selected and purchased for all stores through the company's store support centers located in Memphis, Tennessee; Monterrey, Mexico and Sao Paulo, Brazil. Additionally, the company has offices in Shanghai, China, Haryana, India and Istanbul, Turkey to support its global sourcing efforts. Most of the company's merchandise flows through its distribution centers to its stores by its fleet of tractors and trailers or by third-party transportation firms. The distribution centers replenish the company's stores up to multiple times per week depending on store sales volumes. The company operates domestic and international hub stores, which have a larger assortment of products, as well as regular replenishment items that can be delivered to a store in its network within 24 hours. Hub stores are generally replenished from distribution centers multiple times per week. Hub stores have increased the company's ability to distribute products on a timely basis to many of its stores and to expand its product assortment. As a subset of its domestic hub stores, the company has mega hubs. Mega hubs work in concert with other hubs to drive customer satisfaction through improved local parts availability and expanded product assortments. A mega hub carries inventory of 80,000 to 110,000 unique SKUs, approximately twice what a hub store carries. Mega hubs provide coverage to both surrounding stores and other hub stores multiple times a day or on an overnight basis. The company has domestic stores with access to mega hub inventory. A majority of these stores receive mega hub service same day. Trademarks and Patents The company has registered several trademarks and service marks in the U.S. Patent and Trademark Office, as well as in certain other countries, including without limitation: AutoZone, Get in the Zone, Duralast, Econocraft, ProElite, ShopPro, SureBilt, TotalPro, TruGrade, Valucraft, and ALLDATA, along with variations of these trademarks. Seasonality The company's business is somewhat seasonal in nature, with the highest sales typically occurring in the spring and summer months of February through September, and the lowest sales in the months of December and January. Over the longer term, the effects of weather balance out, as it has stores throughout the Americas. History AutoZone, Inc. was founded in 1979.