16 S C T / A P R I L 2 0 1 7
Fewer people are fixing
their own cars, so
auto parts retailers are
ramping up business with
repair shops instead
By Beth Mattson-Teig
Tune-up
AT HOME IS SE T TING
UP HOME
IN E VERY STATE
18
BLUEMERCURY
IS GROWING,
AND HOW
20
CURRENT MEDITATION
IS A GYM
FOR THE MIND
22
J.C. PENNE Y
STAYS COMMIT TED
TO STORES
22
S T O R E F R O N T S
W H AT T H E T E N A N T S A R E U P TO
A
uto parts retailers may be in for a bumpier drive than they have been
accustomed to. Sales to do-it-yourself customers are slowing, market
consolidation is tightening, and competition from Amazon.com, in particular,
is toughening. But even with all that, the U.S. retail market for auto parts retains
horsepower. The industry generated some $56.3 billion in revenue last year and
has grown at an annual rate of 1.9 percent over the past five years, according to
IBISWorld. The four largest retailers — Advance Auto Parts, AutoZone, NAPA Auto
Parts and O'Reilly Auto Parts — together comprise about 60 percent of this market.
One of the biggest challenges facing the auto parts sector is slowing demand
from its key customer group: the DIY customers looking to do their own
maintenance or repair work. Individuals and households accounted for 61.5
percent of total sales last year, according to IBISWorld. But the retail side, selling