AZO Overview

Founded in 1979 in Forrest City, Arkansas, AutoZone Inc (AZO) currently operates as a distributor and specialty retailer for automotive replacement parts and accessories. Offering countless products for the do-it-yourself customer, AutoZone has the parts needed for cars, SUVs, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.

With nearly 4,100 stores throughout the U.S. and in Puerto Rico, AutoZone also has stores south of the border with nearly 150 outlets throughout Mexico. Headquartered in Memphis, Tennessee, AutoZone currently employs more than 32,000 workers, while being incorporated in the state of Nevada.

Offering numerous products, AutoZone consists of three major product lines. The first being that of hard part, which include brake drums, rotors, shoes, and pads, carburetors, clutches, and A/C compressors. In addition, the company also offers alternators, batteries and accessories, CV axles, shock absorbers and struts, engines, mufflers, starters, fuel pumps and water pumps.

AutoZone also carries their own private label brand of automotive batteries named Duralast and Valucraft, which are both produced by Johnson Controls. With many parts and accessories offered for the do-it-yourselfer, AutoZone does not derive any revenues from installation services or from any type of automotive repair service.

The second of AutoZone's product line is accessories and non-automotive items, which tend to include performance products, seat covers, stereos, cell phone accessories, neon lighting, mirrors, floor mats, air fresheners, hand cleaners, paint and accessories, steering wheel covers, and tools.

Finally, AutoZone offers a line of products that are classified as maintenance items. These products would include antifreeze and windshield washer fluid, windshield wipers, oil, and fuel additives, and brake and power steering fluids. Also included are oil and transmission fluids, oil, air, fuel, and transmission filters, belts and hoses, sealants and adhesives, fuses, spark plugs and wires, car washes and waxes, and oxygen sensors.

In addition to their retail segment, AutoZone also offers a commercial sales program that provides consumer credit to independent retailers. The program allows the tracking of parts to be delivered and other products that are set to requisitioned to local, regional and national dealers, as well as service stations and repair garages. Furthermore, AutoZone also sells their automotive diagnostic and repair software, ALLDATA, to outside retailers as well.

Throughout the company's stores, AutoZone has an electronic catalog called Z-net, that allows employees to look up parts that are needed and available for their customers. Z-net also provides information pertaining to job solutions, advice and additional information on a customer's vehicle.

Z-net allows the sales representative to review a customer's vehicle and decide which parts and/or accessories are needed based on the vehicle's make, model year, and engine type. The software also allows the employee to track all available inventories at the current store, nearby stores, or through their warehouse.

Finally, AutoZone offers specialty tools for those that like to do the work themselves, through Loan-A-Tool program. It is here that customers can request the usage of expensive industry tools that are not readily available to the common person in lieu of rental payments. AutoZone also provides a slew of other free services to their patrons, including the testing of starters, alternators, batteries, sensors and actuators, along with check engine light readings, battery charging and oil recycling.

AutoZone is part of the Auto Parts Stores Industry, which is within the Service sector. The company's major competitors include Pep Boys (PBY), Advance Auto Parts (AAP), O'Reilly Auto Parts (ORLY), and CSK Auto, Checker Auto Parts, as well as CARQUEST and NAPA, the National Automotive Parts Association.

By BetterTrades