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Home Depot Enters the Auto Parts DIY Business


Joe Marconi

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The Atlanta Business Chronicle is reporting that Atlanta-based The Home Depot is seeing success with its pilot program for the automotive Do-It-Yourself (DIY) market. The company currently is running the pilot program in about 50 stores. Home Depot originally launched the pilot program in 10 stores in 2006. The home improvement retailer has dedicated about 500-square-feet of floor space to auto products, including motor oil and fuel additives.

 

It is hard to imagine how Home Depot sees opportunity in the DIY market. I was under the assumption that companies such as Advance and AutoZone are working to form a strong alliance with the commercial trade. What does Home Depot know that others do not?

 

Here is a link to an article and source.

 

http://www.aftermarketnews.com/Item/130070/home_depot_likes_what_it_sees_in_automotive_diy_retail.aspx

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You guys need to think differently. When you come across stuff like this, take yourself out of your "automotive repair" world and you will see what is going on. It's a brilliant move by Home Depot. Who shops there? DIY home improvement people. People who like to do things themselves, mostly minor home improvement and small projects. What is changing oil? Adding fuel additives? Changing an air filter? To these people it is a "minor" improvement or "small" project. Home Depot gets to increase their average ticket, which could greatly offset the cost of added inventory.

 

Will it affect us? Not really. Perhaps a tiny bit, but this stuff is out there already in most "grocery" markets. I would be more worried if I was a parts store because now, Mr. Husband may pick up what he needs when his wife drags him to Home Depot for another "room remodel." So, the local parts store may not get that 5 quarts of oil, air filter, fuel additive sell that they would normally get. That's my 2 cents. I will now go into hiding again because I know it irritates Joe Marconi. Just like my Angels do when his Yankees get beat or don't make the playoffs..... :)

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Mr. Benline, how dare you irritate me! And that remark about the Yankees is way out of line too!

 

Only kidding my friend. You make great points, sadly, I agree with you. How's that?

 

I think that as the DIY market becomes spread out over all the stores that carter to the DIY market, it will only water down profits for those businesses.

 

Great to hear from you Keith...and don't become a stranger....I will find you, remember, I'm from the Bronx.

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I would be more worried if I was a parts store because now, Mr. Husband may pick up what he needs when his wife drags him to Home Depot for another "room remodel." So, the local parts store may not get that 5 quarts of oil, air filter, fuel additive sell that they would normally get. That's my 2 cents..... :)

I agree, it will affect more the parts store sales than repair shop sales. Different customer.

 

http://www.ratchetandwrench.com/RatchetWrench/September-2014/Home-Depot-Entering-DIY-Auto-Repair-Segment/

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