Raw Data Report: Auto Parts and Services

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Oil Change/Tune Ups Sell Great at AAP (AAP) stores but brakes, hoses and batteries not so good

We interviewed Advance Auto Parts, Inc this week. This was after analysts said they maintain their "hold" recommendations on the auto parts stores until costs are contained and same-store sales improve. 35 stores around the country were approached and asked if they offered services as well as parts, what is most often purchased by customers (maintenance or parts), how busy are they, and what specific parts or services do they sell mostly right now.

34% of those we interviewed said they offered service and parts at their stores. 60% said they offered parts only, while only 6% said their stores only offered services to their customers. 43% of those we consulted said their customers mostly came in for maintenance products such as anti-freeze, oil, lubricants and wiper blades. 49% of those we interviewed said customers were buying parts (i.e. alternators, hoses, belts and brakes).

When we asked how business was now compared with a year ago, seven people or 20% didn't have a clue. 66% said business was just the same, so no impact from the economy whatsoever. While 14% felt that business was up. And when we asked what specific parts sold well in the stores, 17% of respondents said batteries were the biggest seller, 14% said that brakes sold best, hoses were cited by 11% of those we interviewed, while oil change/tune-ups were cited by 46% of those polled, so they were clearly the best selling item.

27% of Checker Auto Parts Stores (CSK) say Specials Don't Increase Business

CSK Auto Inc. (Checker Auto Parts) was profiled by Tickermine today. This was in light of the company announcing a decrease in net sales of 2.5% or $11.9 million from its first quarter of 2007. We consulted 30 stores around the country and asked what specials were offered that week, do these attract more customers, what product or services are you selling a lot of this week, and are your customers fretting about the economy or weak housing market.

All 30 locations ran specials the week we polled. These ranged from "buy three tires, get one free," to specials on motor oil and discounted tools. We thought that it was positive that 22 respondents or 73% of those interviewed said business had ramped up as a result. Only eight people or 27% reported no change in customer traffic. Motor oil was selling well for 20% of those polled. 10% cited tire compressers as their best seller. Seven percent cited the Motorola Hands Free Speaker, while another 7% mentioned specials on brakes. 67% of those interviewed said their customers weren't fazed by the weak economy or the housing market crisis. Business just seemed the same for this lot but 10 people 33% said their customers seemed perturbed. And respondents at all 30 locations said their location was older than a year.

Tire Sales Down From Last Year, Say 52% of Retailers (GT)

Tickermine polled tire retailers, including large chains such as Sears (SHLD), Sam's Club, and Wal-Mart (WMT), and learned that the best selling tires this month are Goodyear (GT) (30%), Michelin (24%) and Bridgestone (18%). When asked which tire brands were of the best quality, responses were in line with sales: Goodyear was the most common response (36%). Michelin (24%) and Bridgestone (12%) were also mentioned. Fifty-two percent of stores surveyed said tire sales are down from last year; 24% said sales are up.

Almost Half of O'Reilly Automotive (ORLY) Stores Say that Specials Do Nothing to Beef Up Business

O'Reilly Automotive Inc., the US's largest specialty retailer of aftermarket parts, tools, supplies, equipment, and accessories was surveyed by Tickermine this month. This was after the company posted its first quarter 2008 reports that profits were up by 5.4% from $613 million a year earlier. We asked 32 locations which parts or services sell best, whether business was up or down from a year earlier and how long the store had been open.

The Free Battery Testing with Rotor resurfacing was cited as the best selling service 11 times or by 34% of those polled. Seven respondents or 22% cited the 6 for $6 motor oil deal. And two respondents or 6% said the drum/rotor resurfacing was doing best. Fifteen respondents or 47% said this special has done nought to bring more business to their store. Seventeen or 53% said the special has helped drum up more customers. More tellingly, 13 respondents or 41% said business was not slower this more but 19 or 59% said business had slumped. 28 or 87% reported their store being open longer than a year. Only four people or 13% said their stores were new.