-
Welcome to Auto Parts Forum
Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even sign up with social network platforms such as Facebook, Twitter, Google, and LinkedIn.
Inflation Dents DIY Spending, Crimps O’Reilly’s Q2 Sales
-
Similar Topics
-
By Counterman
Advance Auto Parts reported net sales of $11.2 billion for 2022, up 1.4% from 2021, while comparable-store sales were flat.
Fourth-quarter net sales increased 3.2% to $2.5 billion, while comparable-store sales were up 2.1%.
“In 2022, our team members once again worked to serve our customers with relentless focus and dedication,” said Tom Greco, president and chief executive officer. “Despite challenges throughout 2022, we made progress on our strategic initiatives, including the expansion of our footprint, further strengthening of our DieHard brand and improved customer loyalty. However, we are not satisfied with our results in 2022 and are taking decisive actions to improve performance in 2023. Importantly, the disciplined inventory and pricing actions we discussed last quarter to adapt to an evolving competitive landscape contributed to stronger results in Q4 and we ended the year with positive momentum.
“We expect to see further improvements in inventory availability throughout 2023, which we view as the single most important driver to accelerate topline growth. After several years of significant investments in complex transformation initiatives and the majority of the integration behind us, we’re now able to focus more time and resources on leveraging our differentiated asset base and improving execution to drive long-term shareholder value.”
Advance’s 2023 guidance is for net sales between $11.4 billion and $11.6 billion, and year-over-year growth in comparable-store sales between 1% and 3%.
“In 2023 we are shifting to GAAP as our reporting method for annual guidance,” said Jeff Shepherd, executive vice president and chief financial officer. “As the GPI integration nears completion, we expect transformation costs to be less impactful, which reduces the need for non-GAAP adjustments. In addition, we believe that focusing on GAAP results will improve the understanding and comparability with our closest peers. In 2023 we are elevating our performance to improve topline growth and share gains while delivering operating income margin expansion.”
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By Counterman
Oil changes continue to be one of the most common DIY repairs performed on vehicles today. According to a recent Counterman P.A.R.T.S. report, changing the engine oil was the second-most popular DIY auto care job, behind only changing the wiper blades.
Changing the oil and filter is right in the sweet spot for do-it-yourself (DIY) vehicle owners: It’s a regular maintenance task that’s critical to the overall health and longevity of the engine, and it’s easy to perform. It’s the sort of basic maintenance that can be performed by someone who might not get their hands dirty otherwise. Chances are you’ve had a DIYer in your store asking how to get started. Let’s talk about some of the tips you can share with your DIY customers to help them change their own oil – and do it right.
Essential Tools vs. Non-Essential Tools
Tools are a long-term investment. They may cost more than they’ll save on the first oil change, but they pay for themselves in the long run!
Let’s start with the essential tools that every DIYer should have in their garage. At the top of this list, we find a jack and jack stands. Whenever you’re working underneath a vehicle, you need to make sure that it’s lifted up on level ground, and that it’s safely supported with jack stands. If you lift the vehicle up with a hydraulic jack, and don’t support it with jack stands, the jack can lose pressure and the vehicle will start to lower itself. If you’re underneath the vehicle when this happens, it can be deadly. Be safe, be smart and live to wrench another day. If any of the wheels are coming off, I place them underneath the vehicle for an added layer of protection. My thinking is simple: If something went wrong, having to replace a wheel and/or tire could be the least of my problems!
As a personal rule, I like to use jack stands that are rated for far more weight than I’ll ever put onto them. I have a number of 4-ton and 6-ton jack stands, and I prefer them over the less expensive 2-ton stands due to their increased footprint, and more robust construction.
link hidden, please login to viewFigure 1 Next on the list are the basic tools and supplies you’ll need to finish the job. You’ll need a basic set of sockets, wrenches and ratchets. You’ll also need some form of tool to remove the oil filter or filter housing cap (Figure 1). It’s worth mentioning that you may need to purchase specialty tools to remove the drain plug or filter housing on certain applications. For example, Volkswagen uses a proprietary tool to remove the plastic drain plugs from its modern four-cylinder engines. GM Ecotec engines require a special socket to remove the filter housing cap on its 1.4T and 1.8-liter four-cylinder engines. These are only two examples of many, so it’s best to do some online research before starting the job. Make sure you have all the tools you need on hand BEFORE you start to drain the oil.
You’ll need some form of drain pan or container to catch the oil as it drains out of the engine. It’s a good idea to have some old rags or towels on hand to clean up any spills or messes along the way, and I usually have a can of brake cleaner for added cleaning “umph.”
Finally, let’s talk about personal protective equipment (PPE). It’s a good idea to wear safety glasses to protect your eyes, and gloves to protect your skin.
Tips & Tricks
First and foremost, a DIY customer probably will have a lot of questions about what type of oil they need, how much oil their engine holds and more. While you may be able to lookup fluid specifications and capacities in your catalog, your DIY customers won’t have access to something like that. But a quick Google search should get them on the right track. I would always advise them to follow the OE maintenance guide and specifications, regardless of mileage or age.
There are a lot of things that you’ll learn through experience. Any tips, pointers or advice you can share with your DIY customers can go a long way toward helping them, and might just be the thing that gets them back to your store for the next repair. For example, some oil-drain plugs feature a gasket or crush washer that seals up against the oil pan. This type of gasket will need to be replaced at every oil change. A leaky drain plug can be a real pain, and could be really discouraging to a DIYer after their first oil change.
Then there are the little things that just make the whole job go a little bit smoother. I like to keep some old, cut-up cardboard boxes around the garage. In a pinch, they work great as a “poor man’s creeper.” Sometimes you don’t have enough room under the vehicle to slide around on a creeper, so the cardboard gives me something to lay on without having to lay directly on the cold, concrete floor.
When replacing a spin-on oil filters, always wipe off the mounting surface before installing the new filter. This ensures that any dirt or debris will be wiped away, AND if the gasket was stuck in place, you’ll either feel it, or you’ll knock it off of there. If you installed the new oil filter on top of the old gasket, it wouldn’t seal correctly. The result would be a massive blowout, leaving oil all over the garage floor. Not a great way to spend an afternoon!
link hidden, please login to viewFigure 2 The same applies to cartridge oil filters, but for different reasons. Cartridge oil filters are held in place by a filter housing cap. This cap will contain one or more O-rings that seal inside the housing. These O-rings need to be replaced with every oil change, and they’re almost always included with the new cartridge oil filter. Whatever you do, don’t double up these O-rings! This can lead to massive oil leaks, but it also can make the filter housing cap nearly impossible to remove (Figure 2).
Finally, always dispose of the used oil safely. If your store will take used oil, be sure to let your customers know. If your store cannot take in used oil, make a list of nearby shops that will. Some shops use oil-burning heaters, so they may take used oil without a charge to the customer.
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By AutoZone
MEMPHIS, Tenn. , Feb. 28, 2023 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $3.7 billion for its second quarter (12 weeks) ended February 11, 2023 , an increase of 9.5% from the second quarter of fiscal 2022 (12 weeks). Domestic same store sales, or sales for stores
link hidden, please login to view -
By Counterman
“The GPC team capped off a record-setting year with a strong fourth quarter highlighted by double-digit sales and earnings growth and continued margin expansion,” said Paul Donahue, chairman and CEO. “We are incredibly proud of our progress throughout the year and thankful to our teammates across the globe for their ongoing commitment to excellence. Working together, we have been agile in navigating the dynamics of the macro-economy and continue to deliver market share gains and drive positive momentum in our top and bottom-line results.”
Full-year net sales for the Global Automotive Parts group were $13.7 billion, up from $12.5 billion in 2021.
In the fourth quarter, net sales for the Global Automotive Parts group were $3.4 billion, up 7.6% from fourth-quarter 2021. Comparable-store sales were up 8.2% in the auto parts segment.
Industrial sales were $2.1 billion, up 29.6% fourth-quarter 2021, and reflecting a 16.7% increase in comparable sales and a 14.3% contribution from the KDG acquisition.
“The strength in Automotive sales was broad-based, with double-digit total sales growth in local currency in each of our global operations,” said Will Stengel, president and chief operating officer. “In addition, Industrial generated its seventh consecutive quarter of double-digit sales comps and 10th consecutive quarter of margin expansion, while continuing to execute well and create value with the accelerated integration of KDG. Our strong fourth quarter and record financial performance in 2022 are testaments to our teams’ hard work and dedication to serve our customers.”
For full-year 2023, GPC is projecting total year-over-year sales growth between 4% and 6%, according to its guidance. GPC is estimating year-over-year sales growth between 4% and 6% for both the Automotive Parts Group and the Industrial Parts Group.
“We had an exceptional 2022, which included celebrating our 95th year of operations,” Donahue said. “We have quickly turned our attention to the year ahead and, while the macro environment remains uncertain, we are confident in our strategic plans to drive sustained sales and earnings growth, continued margin expansion and strong cash flow. We believe our progress in these key areas, combined with a strong balance sheet, position GPC with the financial strength and flexibility to pursue strategic growth opportunities while also returning capital to shareholders
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view 
-
By Counterman
With each new season, we’re presented with different challenges and different sales opportunities. It’s up to us to capitalize on these opportunities, and help boost our margins and keep our stores in the green. So, as the temperature starts to drop outside, let’s take a look at what we can do inside our stores to boost add-on sales, and what trends we can expect to see in the coming months.
‘Tis the season
The first category we’re going to look at is what I call “winter seasonal products.” These are the types of products that only come out to the shelf during this season. Ice scrapers, snow brushes, winter hats and gloves all fall into this category. Many stores will display these types of products on an end cap, or a special cardboard stand or display.
There are lots of opportunities to get add-on sales with this category. If a customer is buying a snow brush or ice scraper, ask them if they’d also like to pick up a pair of winter gloves, or a jug of de-icing windshield-washer fluid. Every little bit will help to boost your margins.
There are some products that fit into this category, but they stay out on the shelf all year long. One example would be fuel and oil additives. While these additives can be found all year long, they’ll likely move off the shelf faster in the winter. Why? Colder temperatures are especially harsh on vehicles that run on diesel fuel. When the temperature drops, diesel fuel can gel. This can lead to clogged fuel lines and filters. That’s why many diesel owners will pick up fuel-system treatments in the winter.
Batteries
Battery sales tend to jump twice a year: when the temperatures climb in the summer, and again when they drop in the winter. Cold weather takes a toll on batteries and electrical systems. Engine oil is thicker when it’s cold, so the engine is harder to start than it would be at warmer temperatures. On top of that, the colder temperatures will sap the cranking power the battery has to offer. There’s a good reason why batteries are rated for cranking amps (CA) and cold-cranking amps (CCA). The temperature outside has a big impact on how much power the battery has to offer.
When it comes to selling batteries, always remember to offer dielectric compound, as well as the fiber insulators that slide over the battery posts and sit underneath the battery cables. I’ve also had good luck selling small, compact battery jump packs to customers in the past. These small battery jumpers aren’t much bigger than a cellphone, but they pack a big power punch when you need it most. They’re relatively inexpensive, but they offer some serious peace of mind.
Wiper Blades
I’ve talked before about how I dreaded two types of days in the parts store: heavy snowfall and heavy rainfall. Why? Because I knew that we would be selling a ton of wiper blades on those days. It also meant that I would be installing all of those wiper blades outside, so I’d either end up soaking wet from the rain, or frozen stiff from the snow and ice. Worst of all, our margin on wiper blades was pretty thin, so our store numbers wouldn’t fare very well that day.
So, what did we do to boost our margins? We would do our best to upsell the better wiper blades, as well as offering washer fluid and other add-ons along with the wipers. For SUVs and wagons, we would always ask them about the rear wiper blade. Experience has taught me that many customers will neglect that small rear wiper blade, so it’s important to ask.
Our final tip in this category is to tell your customers about the benefits of using a washer fluid with a de-icing formula. Many customers aren’t aware of how this type of washer fluid can help them day-to-day, and it’s an easy add-on sale.
Belts & Hoses
This final category will only represent a small percentage of your winter sales, but it’s important to be aware of what you can expect. Belts and hoses can become brittle, crack or break altogether when the temperature drops. Modern modular hoses usually will have plastic connectors or tees that are especially susceptible to the cold, and if they break, the customer will need to buy the entire hose. It’s important for your customers to check belts and hoses for signs of wear or damage before the winter weather hits. It’s much better to catch this sort of issue early, rather than wait until the vehicle breaks down on the side of the road.
I had a few customers who would stock up on detailing supplies once the weather started to turn. They told me that they would wax their car before the snow came so the paint would be better-protected from the elements. These days, ceramic coatings are available that do an even better job of protecting the paint from the hazards seen during the winter.
So, take a walk around your store and think about what you expect to see selling this winter. Come up with a game plan for how you can maximize your sales numbers heading into the winter season, and what types of add-on sales opportunities you can find.
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view
-
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.