Are we seeing the “Home Depot” effect in the Auto Parts Industry?

[Joe Marconi]

It's no secret that Home Depot changed the Hardware Store business. Are we seeing the same thing occur with the auto parts industry? Will Wall Street dictate the future of the parts business? Main Street, not Wall Street once dominated our business landscape.

 

Part stores were part of the community. Did they cater to the DIY? Of course they did. But the DIYer was someone who could actually work on his car, not the weekend warrior who has no business sticking his head under the hood. And why does he attempt to stick his head under the hood? Because companies like Advance and Auto Zone tells them they belong there. Don't know how to install your alternator, no problem, click on this video and we will show you Mr. DIY.

 

There is no stopping big business and what mass consolidation will do to our industry. But, guys like me don't have to like it. The truth is Home Depot may have shifted their industry, but it also made a select group of business owners only stronger. The same may happen in the parts business.

 

Big Parts Guys, if you truly want OUR business, you need to stop catering to the DIY market and insulting us by telling us the DIYer is not our customer. The motoring public hears your commercials, they see you ads, they get your discount flyers in the mail. So, stop the insults. I would have more respect if you just come clean.

 

My guess, nothing will happen. The big guys won't change when money gets in the way. When home town and Wall Street collide, Wall Street usually wins. Usually, but not always.

[xrac]

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[Joe Marconi]

Joe I agree. I believe that the acquisition by Advanced of Carquest will only result in the destruction of a dependable vendor for the DIFM businesses.

Thanks Frank, we need to keep this conversation going and my hope is that the independent shops around the country realize what we do.

[LynxStarAuto]

The Carquest acquisition only really helped us (the repair facilities). They now are the biggest distributor for the commercial segment, and added other part houses to the mix like Worldpac. Advance Commercial is giving Napa a run for their money. That is always a good thing, because competition keeps ppl honest.

[xrac]

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[JimO]

Joe's analogy is correct. The Advance acquisition of CarQuest came early to my area. The change was NOT good, no benefit only detriment. The Advance DIY business model was apparent to me based on the following: 1) Increased cost and list pricing. 2) Elimination of parts required by us but not required by the DIY's. 3) Print and radio spots offering "no charge" code reading, battery tests and battery replacements which not only placed Advance as my competition but also degraded the knowledge, equipment and effort required to diagnose a modern vehicle to a mere "no charge" accommodation.

 

Now the good news concerning Joe's last sentence about the big guys not changing. On Friday afternoon I received a call from a member of a business investment research firm who was hired by a group of investors to review Advance Auto Parts as a possible investment opportunity. This gentleman contacted me and reviewed my feelings about Advance because in the past I had posted comments about Advance on Auto Shop Owner. We need to know that our comments, praise or criticism, are being viewed by other people and some of them are Wall Street people. We never had an independent public platform that could reach so many people before. I am ashamed to say this but I never talked about business with shop owners in my immediate area no less the amount of people this forum reaches. We need to talk, we need to realize and understand that we are all facing similar problems and maybe together with careful consideration and open discussion we can make a change. Thanks again Joe for another great post.

[Joe Marconi]

Joe's analogy is correct. The Advance acquisition of CarQuest came early to my area. The change was NOT good, no benefit only detriment. The Advance DIY business model was apparent to me based on the following: 1) Increased cost and list pricing. 2) Elimination of parts required by us but not required by the DIY's. 3) Print and radio spots offering "no charge" code reading, battery tests and battery replacements which not only placed Advance as my competition but also degraded the knowledge, equipment and effort required to diagnose a modern vehicle to a mere "no charge" accommodation.

 

Now the good news concerning Joe's last sentence about the big guys not changing. On Friday afternoon I received a call from a member of a business investment research firm who was hired by a group of investors to review Advance Auto Parts as a possible investment opportunity. This gentleman contacted me and reviewed my feelings about Advance because in the past I had posted comments about Advance on Auto Shop Owner. We need to know that our comments, praise or criticism, are being viewed by other people and some of them are Wall Street people. We never had an independent public platform that could reach so many people before. I am ashamed to say this but I never talked about business with shop owners in my immediate area no less the amount of people this forum reaches. We need to talk, we need to realize and understand that we are all facing similar problems and maybe together with careful consideration and open discussion we can make a change. Thanks again Joe for another great post.

Thanks for the kind words. We must keep the dialogue going. We are all in this together and in numbers there is strength.

[Jeff]

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[alfredauto]

The dealers in my outlying areas are becoming very commercial friendly. They see the opportunity. They come down from 100 miles away every day so we can put their parts on cars they aren't going to normally see, I like buying from the dealer the parts fit right and don't advertise free diagnosis.