AutoZone

Last updated
AutoZone, Inc.
Company type Public
Industry Retail
FoundedJuly 4, 1979;45 years ago (1979-07-04) (as Auto Shack)
Forrest City, Arkansas, U.S.
Founder Pitt Hyde
Headquarters Memphis, Tennessee, U.S.
Number of locations
7,140 (2023)
Area served
Key people
 Phil Daniele
(Chairman, President, & CEO)
Jamere Jackson
(CFO)
Products Automotive parts and accessories
RevenueIncrease2.svg US$17.48 billion (2023)
Increase2.svg US$3.474 billion (2023)
Increase2.svg US$2.528 billion (2023)
Total assets Increase2.svg US$15.99 billion (2023)
Total equity Decrease2.svg US$–4.35 billion (2023)
Number of employees
c. 119,000 (August 2023)
Website autozone.com
Footnotes /references
Financials as of August 26,2023. [1]

AutoZone, Inc. is an American retailer of aftermarket automotive parts and accessories, the largest in the United States. Founded in 1979, AutoZone has 7,140 stores across the United States, Mexico, Puerto Rico, Brazil, and the US Virgin Islands. The company is based in Memphis, Tennessee. [1] [2]

Contents

History

1970s

Originally a division of Memphis-based wholesale grocer Malone & Hyde, the company was known as Auto Shack. After the sale of the grocery operation to the Fleming Companies of Oklahoma City, Oklahoma, the name of the company was changed to AutoZone to better reflect the company focus just prior to the company going public.

On July 4, 1979, the first store opened in Forrest City, Arkansas [3] under the name of Auto Shack. [4] Doc Crain was the store's first manager. Sales that first day totaled $300.00. [5]

1980s

In 1981, Express Parts or VDP was implemented to get the customers hard to find parts by special ordering them through wholesalers. The total stores were 73 in 7 states.

In 1984, the company became the first auto parts retailer to create a quality control program for its parts. Total stores were 194 in 13 states.

In 1985, Doc Crain coined the term WITTDTJR, which stands for "What it takes to do the job right." The total store count is 263 in 14 states. Peter Formanek stepped in as president. He oversaw the auto parts firm's daily operations and worked on growth strategy. [2]

By 1986, expansion had made the company grow into a large store chain across the South and the Midwest. That year, Darren Reltherford, manager of Auto Shack's Memphis, Tennessee store, received the first Extra Miler award, which has since been given to AutoZoners who show their dedication to customer satisfaction by "going the extra mile" for customer service. The Duralast line of alternators and starters was released. The Loan-A-Tool program began allowing customers to borrow specific tools for jobs. The fourth distribution center in Greenville, South Carolina opened. The total number of stores was 339 in 15 states.

AutoZone store in Murphy, North Carolina AutoZone store in Murphy, North Carolina.jpg
AutoZone store in Murphy, North Carolina

In 1986, Auto Shack was sued by Radio Shack for trademark infringement. In 1987 Auto Shack announced plans to change its name to AutoZone. [4] The first AutoZone store was in Enid, Oklahoma. That year also, the company introduced WITT-JR, an electronic catalog used to look up parts and keep warranty information. The total number of stores was 459 in 16 states.

In 1989, the company began using a computerized store management system (SMS). The Duralast battery line consisting of Sub-Zero, Desert, and long life was released. The total number of stores was 513 in 17 states.

1990s

In 1991, its stock began trading on the New York Stock Exchange using the ticker symbol "AZO." [4] It opened up at $27.50 a share. The fifth DC opens in Lafayette, Louisiana. The company also became the first auto parts retailer to register customer warranties in a computer database.

In 1994, AutoZone began using satellites to facilitate communication between stores and the corporate office. Sales hit $1.5 billion.

In 1995, AutoZone opened its 1,000th store in Louisville, Kentucky. Also, the Duralast trademark made its debut with the Duralast and Duralast Gold batteries. Total of stores is now 1,143 in 26 states. [6]

1996 was the year when the Internet era arrived at the company, when AutoZone opened its company Web site. The new commercial program debuted in Germantown, Tennessee. ALLDATA, a software company based in Elk Grove, California that provides automotive diagnostic and repair information, was acquired. [7]

Company founder Pitt Hyde retired as chairman and CEO in 1997. [4] John Adams became the new chairman and CEO.

In 1998, [8] [9] AutoZone acquired ADAP Inc, who had stores under the ADAP Discount Auto Parts and Auto Palace nameplates respectively, [10] both being auto parts chains in the northeastern United States with 112 stores, [11] [12] TruckPro L.P., a chain with 43 stores in 14 states, and the 560-store Chief Auto Parts Inc., a chain with a presence in 5 states. [13] [14] At the commencement of fiscal 1999, AutoZone made another acquisition by purchasing 100 Express stores from The Pep Boys—Manny, Moe & Jack. [15] The company began a process of internationalization with their first store abroad, which opened in Nuevo Laredo, Mexico. [16] AutoZone closed the 1990s by debuting at the Fortune 500 list in 1999.

2000s

Steve Odland became AutoZone's third CEO in 2001. [17] Also in 2001, AutoZone sold TruckPro to Paratus Capital Management. [18]

AutoZone store sign in Phoenix, Arizona Auto Zone sign.JPG
AutoZone store sign in Phoenix, Arizona

In 2002, AutoZone developed a network of "hub, feeder, and satellite" stores to have more product in the market area, while reducing inventory investment. Sales hit $5.33 billion. [19]

In 2003, the Duralast tool line was introduced. This was a year of important negotiations for AutoZone, as the company partnered with other important auto parts industry companies, such as CarMax and Midas. AutoZone de Mexico opens the first DC in Nuevo Laredo, Mexico. Total stores number 3,219 in 48 states and 49 in Mexico. [20] In 2004, founder J.R. "Pitt" Hyde III was inducted into the Automotive Hall of Fame. [21]

In 2005, William C. Rhodes III was named president and CEO. Steve Odland left to become the chairman and CEO of Office Depot. [22]

In 2007, Bill Rhodes, then 42, was named chairman, president and chief executive officer of AutoZone, Inc. on June 6. [23]

In 2008, AutoZone opened their 4,000th store in Houston, Texas. Sales hit $6.2 billion. [24] [25]

2010s

Interior of an AutoZone store in North Port, Florida Interior of AutoZone store 3816.jpg
Interior of an AutoZone store in North Port, Florida

On December 15, 2011, ALLDATA LLC, an operating unit of AutoZone, expanded its direct presence in Canada to better serve its growing customer base. [26] [27]

On August 17, 2012, AutoZone expanded into their 49th state Alaska by opening their 5,000th store in Wasilla, Alaska.

In 2012 AutoZone opened their first store in Brazil. [28]

In December 2012, AutoZone purchased AutoAnything.com, an e-commerce leader in aftermarket automotive parts based in San Diego, California. [28] [29]

By April 2017, AutoZone had been the largest retailer of automotive parts in North America for three consecutive years. [30] As of August 2017, AutoZone had 5,465 locations in the United States, 524 locations in Mexico, and 46 locations in Brazil, for a total of 6,035. [31]

On October 22, 2018, Pitt Hyde announced that he would be stepping down from AutoZone's board of directors. [32]

2020s

Destroyed AutoZone store in Minneapolis, Minnesota People in the parking lot of a burned down Auto Zone on Lake Street on Thursday morning in Minneapolis, Minnesota (49945223833).jpg
Destroyed AutoZone store in Minneapolis, Minnesota

In late May 2020, two AutoZone stores were destroyed by arson during the George Floyd protests in Minneapolis–Saint Paul. [33]

In early Jan 2024 Phillip Daniele, was promoted to CEO.

Corporate affairs

AutoZone is incorporated in the state of Nevada. [1]

Headquarters

Since October 1995, AutoZone has been headquartered in its J.R. Hyde, III Store Support Center (SSC), a 270,000-square-foot (25,000 m2), eight-story building in Downtown Memphis, Tennessee. [34] As of 2013 there were over 1,200 employees there. [35]

The project manager of the building's construction was Rob Norcross, a principal at LRK Inc. The building has the capability to withstand a 9.0 magnitude earthquake because it has a special base isolation system that had a price tag of $950,000. [34]

Private labels

Valucraft, Duralast, and Duralast Gold are AutoZone's private label brands for lead-acid automotive batteries (manufactured primarily by Johnson Controls, but also East Penn, Exide, and other manufacturers). Duralast Platinum is an AGM line of batteries. AutoZone also sells tools under the Duralast brand which carry a lifetime warranty. [36]

Brake pad labels include (ranging from least to most expensive):

Valucraft pads are being phased out, as of early 2015. Duralast GT Street pads introduced early 2018.

The Valucraft, Duralast, and Duralast Gold names are used on various other parts and accessories as well.

Duralast Elite pads [37] were first trademarked [38] and began being introduced to select markets in early 2020.

Retail stores

AutoZone store in Hillsborough, North Carolina. 2008-09-11 AutoZone in Hillsborough, NC.jpg
AutoZone store in Hillsborough, North Carolina.

AutoZone's 7,140 retail outlets as of August 26,2023 [1] throughout the United States, Mexico and Brazil stock a variety of aftermarket parts as well as some OEM parts. All AutoZone stores are corporately owned; the company does not have franchise operations. [39]

Sponsorships

In 2004, AutoZone celebrated its 25th anniversary and announced a corporate sponsorship agreement with auto racing association NASCAR.

In 2007, AutoZone sponsored Kevin Harvick and Timothy Peters in the NASCAR Busch Series.[ citation needed ]

AutoZone holds the naming rights to the downtown Memphis baseball stadium that is the home of the Memphis Redbirds of the Pacific Coast League. The company also sponsors the AutoZone Liberty Bowl. [40] The AutoZone Liberty Bowl, alongside the College Football Playoff Foundation donated $250,136.03 to the St. Jude Children's Research Hospital. [41] The AutoZone Liberty Bowl awarded 2018's Distinguished Citizen Award to Priscilla Presley. [42]

They are an official sponsor of Bellator MMA, the world's second largest Mixed Martial Arts promotion.

Lawsuits

AutoZone paid $3.3 million to settle a lawsuit by the families of a family who was killed due to being rear-ended by an AutoZone-owned truck. The suit alleges that AutoZone was negligent in training the driver of the truck. [43]

AutoZone faced a lawsuit for gender discrimination in which the plaintiff alleged that men treated her differently when she was promoted and that she feared revealing a pregnancy to her superior. When the pregnancy was discovered, she alleges that her district manager pressured her to step down from her position. She was demoted in February 2006 and fired in November 2011. The jury on the case ruled in 2014 in favor of the plaintiff, awarding her $185 million in punitive damages as well as approximately $873,000 in back wages. AutoZone has announced its intention to appeal the verdict. [44] The Wall Street Journal's Jacob Gershman suggested that the verdict would be scaled back, noting that the jury verdict is not the end-all be-all. [45]

A Georgia woman was fired after a customer insulted her and used multiple racial epithets against her. She alleges that the district manager told her to "suck it up," and she is filing a lawsuit against AutoZone for violating her civil rights. [46]

AutoZone came under fire from allegations that a district manager had told an employee to remove a flag displayed on the company's premises for the sake of improved diversity. AutoZone denies that and claimed that it was the poor means by which the flag was put up, with duct tape and suction cups. [47]

In June 2019 AutoZone entered into an $11 million settlement against with the State of California to resolve allegations that the company had violated state laws governing hazardous waste, hazardous materials, and confidential consumer information. AutoZone is charged with illegally disposing of millions of hazardous waste items, including used motor oil and automotive fluids, at landfills not authorized to accept hazardous waste. [48]

See also

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References

  1. 1 2 3 4 "US SEC: Form 10-K AutoZone, Inc". United States Securities and Exchange Commission. October 24, 2023.
  2. 1 2 "AutoZone co-founder, former president Peter Formanek has died". Memphis Commercial Appeal. 9 March 2020. Retrieved March 16, 2020.
  3. ↑ AutoZone, Inc. AutoZone Official Site
  4. 1 2 3 4 Eng, Dinah (August 12, 2013). "Putting AutoZone into Drive". Fortune . 168 (3): 17–18.
  5. ↑ "The AutoZone Story". AutoZone. Retrieved November 12, 2018.
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  7. ↑ "AutoZone, Form 10-Q, Quarterly Report, Filing Date May 20, 1996". secdatabase.com. Retrieved Jan 18, 2013.
  8. ↑ "AutoZone, Form 10-Q, Quarterly Report, Filing Date Jun 23, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  9. ↑ "AutoZone, Form 8-K, Current Report, Filing Date Jul 2, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  10. ↑ "1992 Auto Palace Hauler - Brian Z. Patton".
  11. ↑ "AutoZone To Acquire Auto Palace". PRNewswire . January 14, 1998.
  12. ↑ "AutoZone continues growth with Auto Palace purchase". The Auto Channel . February 1998.
  13. ↑ O'Dell, John (May 12, 1998). "AutoZone to Acquire Car Parts Rival Chief". Los Angeles Times .
  14. ↑ O'Dell, John (July 1, 1998). "AutoZone Purchase of Chief Auto Is Complete". Los Angeles Times .
  15. ↑ "AutoZone, Form 10-K, Annual Report, Filing Date Nov 25, 1998". secdatabase.com. Retrieved Jan 18, 2013.
  16. ↑ "AutoZone, Form ARS, Filing Date Nov 2, 1998". secdatabase.com. Retrieved Jan 18, 2013.
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  18. ↑ "AutoZone sells TruckPro division". bizjournals.com. 2001-12-20. Retrieved 2021-02-03.
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  21. ↑ "Automotive Hall of Fame: A night for legends". autonews.com. 2004-10-11. Retrieved 2021-02-03.
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  23. ↑ "AutoZone, Form 8-K, Current Report, Filing Date Jun 7, 2007". secdatabase.com. Retrieved Jan 18, 2013.
  24. ↑ "AutoZone, Form 10-K, Annual Report, Filing Date Oct 22, 2007" (PDF). secdatabase.com. Retrieved Jan 18, 2013.
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  26. ↑ "ALLDATA Expands Its Presence in Canada". ALLDATA Automotive Intelligence. 15 December 2011. Retrieved 14 January 2020.
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  28. 1 2 "AutoZone, Form 8-K, Current Report, Filing Date Dec 4, 2012". EDGAR . SEC . Retrieved Jan 18, 2013.
  29. ↑ "AutoZone, Form 10-Q, Quarterly Report, Filing Date Dec 13, 2012" (PDF). EDGAR. SEC. Retrieved Jan 18, 2013.
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  33. ↑ Penrod, Josh; Sinner, C.J. (2020-07-13). "Buildings damaged in Minneapolis, St. Paul after riots". Star Tribune . Retrieved 2022-05-05.
  34. 1 2 "AutoZone HQ holds title as most earthquake-resistant Memphis building." Memphis Business Journal . May 13, 2011. Retrieved on December 6, 2014.
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  42. ↑ Maxey, Ron (April 8, 2018). "Priscilla Presley named AutoZone Liberty Bowl's 2018 Distinguished Citizen". Commercial Appeal. Retrieved November 12, 2018.
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  44. ↑ London, Christina; Nguyen, Candice (November 17, 2014). "AutoZone Ordered to Pay $185M in Discrimination Suit". NBC San Diego. Retrieved November 12, 2018.
  45. ↑ Gershman, Jacob (November 19, 2014). "$186 Million AutoZone Verdict is Eye-Opening, but Unlikely to Stick". The Wall Street Journal. Retrieved November 12, 2018.
  46. ↑ Northam, Mitchell (January 24, 2018). "AutoZone worker: Customer unleashed racist tirade — and I got fired". AJC. Retrieved November 12, 2018.
  47. ↑ Lacapria, Kim (September 2, 2016). "AutoZone Flag Removal". Snopes. Retrieved November 12, 2018.
  48. ↑ Becerra, Xavier (June 18, 2019). "Attorney General Becerra Announces $11 Million Settlement against AutoZone for Illegal Disposal of Hazardous Waste Statewide". California Attorney General. Retrieved June 19, 2019.

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