Advance Auto Parts Inc.
- AAP at NYSE
Overview
Advance Auto Parts Inc. is an American company that specializes in selling automotive parts and accessories. The company was founded in 1932 and is headquartered in Raleigh, North Carolina. It operates over 4,800 stores in the United States, Puerto Rico, and the Virgin Islands.
Advance Auto Parts offers a wide range of products, including batteries, brakes, engines, filters, gaskets, lighting, oil, transmission fluids, and many others. The company sells both branded and private label products. In addition, it offers various services such as oil and battery recycling, battery testing, and installation of parts.
Advance Auto Parts serves both professional mechanics and do-it-yourself customers. The company provides various tools and resources to help customers find the right parts for their vehicles, including online catalogs, in-store displays, and knowledgeable staff. It also offers a loyalty program, Speed Perks, which rewards customers with discounts, exclusive offers, and other benefits.
In recent years, Advance Auto Parts has expanded its business through acquisitions, including General Parts International, Inc. in 2014, and Carquest Auto Parts in 2013. The company has also invested in technology to enhance the customer experience, such as its online platform and mobile app, which enable customers to easily search for and purchase parts, as well as track their orders and receive notifications about promotions and events.
Segments
Advance Auto Parts Inc. is structured as a publicly traded corporation with a board of directors and executive management team. The company is divided into two primary business segments:
- Professional and
- DIY (Do-It-Yourself).
The Professional segment serves professional mechanics and repair shops, providing them with a broad range of automotive parts and accessories, as well as services such as delivery and training. This segment includes the acquisition of General Parts International, Inc. (GPI), which operates under the brand names CARQUEST and Worldpac.
The DIY segment serves do-it-yourself customers, offering them a wide selection of automotive parts and accessories, as well as services such as battery testing, oil and battery recycling, and installation of parts. This segment operates under the brand name Advance Auto Parts.
In addition to these primary segments, the company also has a digital business segment, which includes the company’s e-commerce platform and mobile app, as well as digital marketing and data analytics.
Overall, Advance Auto Parts’ business structure is designed to serve two distinct customer segments (Professional and DIY) with a focus on providing a wide range of automotive parts and accessories, as well as services that enhance the customer experience. The company’s recent acquisitions and focus on technology also suggest a strategic direction towards expanding its offerings and presence in the digital space.
