AutoZone Improves Inventory Levels, Adds New Sales Tool

AutoZone continues to enhance its IT infrastructure and is focusing on the refinement of its merchandise assortment in order to boost sales. In its latest quarter, the retailer posted a same store sales increase of 5.4 percent in comparison to last year's fourth quarter.

At its Hubs stores, the retailer is improving the productivity of inventory particularly slower turning inventory. "We no longer have to retain certain slower moving SKU's in our satellite stores because we can access the slower turning SKU's from our Hub stores, thereby reducing working capital," says William Rhodes, President and CEO, AutoZone.

AutoZone recently implemented a new sales force management tool that allows it to direct its sales force to specific accounts and provides meaningful data on the outcome of those sales calls. The retailer also has invested in a formal leadership training program for store managers and their leaders in order to improve customer service and grow sales.

Additionally, AutoZone continues to focus on store expansion. The retailer opened 20 new stores during its fourth quarter and has 188 stores in Mexico. For the year, AutoZone opened 40 new stores, compared to 25 new stores last year. The retailer has converted an additional 15 Hub stores to our new model by expanding the hard parts assortment and increasing the delivery frequency to our satellite stores. It currently has converted just under half of our 143 Hubs to this new operating model.