1.

Retailer and Distributor: AutoZone is a leading retailer and distributor of automotive replacement parts
and accessories in the Americas.
2. Store Presence: As of November 18, 2023, the Company had 6,316 stores in the U.S. , 745 in Mexico and
104 in Brazil for a total store count of 7,165. Stores typically range from 6,500 square feet to 8,000 square
feet
3. Company Ownership: All stores are company-owned and operated; AutoZone does not offer franchises.
4. Stock Information: Listed on the New York Stock Exchange under the ticker AZO and is part of the S&P
500 index.
5. Fortune 500 Status: Recognized as a Fortune 500 company.
6. Product Range: Offers products for cars, SUVs, vans, and light trucks, including new and remanufactured
automotive hard parts, maintenance items, accessories, and non-automotive products.
7. Commercial Sales Program: Provides commercial credit and prompt delivery of parts to repair garages,
dealers, service stations, and public sector accounts.
8. Software Sales: Sells the ALLDATA brand diagnostic and repair software through www.alldata.com.
9. Online Sales: Products available online for retail customers through www.autozone.com and for commercial
customers through www.autozonepro.com.
10. Revenue Sources: Does not derive revenue from automotive repair or installation services.

Human Capital Resources

1. Total Employees: AutoZone Inc. employs roughly 119,000 individuals, known as AutoZoners.
2. Full-Time vs. Part-Time:
 Approximately 71,400 (60%) are employed full-time.
 About 47,600 (40%) are part-time employees.
3. Employment by Role:
 Around 108,290 (91%) work in stores or are involved in direct field supervision.
 Approximately 7,140 (6%) are situated in distribution centers.
 Close to 3,570 (3%) serve in store support and other functions.
4. International Workforce: The company has about 15,500 AutoZoners as part of its international workforce.

Merchandising
The following tables show some of the types of products sold by major category of items:
Stable and Growing End-Market Demand
AutoZone benefits from a stable and growing end-market. Demand for autoparts is largely a function of two variables:
 Miles driven
 Vehicles that are at least seven years old
Miles Driven
Since 1970 miles driven have increased 2.2% per year, increasing from 1.1 to 3.19 million miles. The more miles
driven, the more demand AutoZone sees for its failure and maintenance products, which are 85% of sales.

Vehicle Age
AutoZone's sales correlate with the number of vehicles age seven or older. The typical vehicle is driven 12,500 miles
per year. After seven years, it has 87,500 miles on it. At this point, it is out of warranty and increased maintenance is
needed to keep the vehicle operating.
The average age of vehicles on the road today is 11.4 years. Average age is increasing because new cars contain lots of
new technology and sensors which make them more expensive. Consumers are driving their existing cars longer to
defer a big-ticket purchase. This behaviour becomes more pronounced during recessions.

Store Development
 Current Assets
Aug 25, 2018
Aug 29, 2020
Aug 27, 2022
Date
500,000 1,500,000 2,500,000 3,500,000 4,500,000 5,500,000 6,500,000 7,500,000
Axis Title

Date Aug 26, 2023 Aug 27, 2022 Aug 28, 2021 Aug 29, 2020 Aug 31, 2019 Aug 25, 2018

Cash and cash 277054 264380 1171335 1750815 176300 217824 NaN
equivalents
Accounts re- 520385 504886 378392 364774 308995 258136 NaN
ceivable
Merchandise 5764143 5638004 4639813 4473282 4319113 3943670 NaN
inventories
Current mar- 39639 49768 46007
Axis Title 76118 67958 59444 NaN
ketable debt
securities
Other current 178205
Cash 170946
and cash equivalents 179756 146883
Accounts receivable 156319inventories
Merchandise 156795 NaN
assets Current marketable debt securities Other current assets
 AutoZone Inc., net profit margin, long-term trends,
comparison to competitors
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
—
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20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
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ug p e ug p e ug p e ug p e ug p e ug p e ug p e ug p e ug p e ug
A A D A A D A A D A A D A A D A A D A A D A A D A A D A

AutoZone Inc. Amazon.com Inc. Home Depot Inc. Lowe’s Cos. Inc. TJX Cos. Inc.

\
SWOT Analysis Matrix

Strengths Weaknesses

1. High Operating Costs: Compared to competitors,

1. Market Leadership: Leading distributor of AutoZone has a higher cost structure, reflecting its
automotive parts, benefitting from strong brand commitment to superior customer service, which could
recognition across 7,140 stores as of 2023. pressure margins.

2. Dependence on Physical Stores: Despite the rise of

2. Extensive Store Network: Expanded from 6,202 online shopping, AutoZone still heavily relies on its brick-
stores in 2018 to 7,140 in 2023, indicating a strong and-mortar stores, which could be a liability in the digital
growth and presence in the retail automotive sector. age.

3. Strong Revenue Growth: Revenue increased from 3. Limited International Operations: While having a
$11.2 billion in fiscal 2018 to $17.5 billion in fiscal presence in the Americas, AutoZone’s operations are less
2023, demonstrating a compounded annual growth rate diversified globally compared to some competitors, limiting
of nine percent. its reach.

4. Robust Commercial Programs: AutoZone's

targeted initiatives for commercial customers, like
dedicated sales teams and tailored online platforms
(AutoZonePro.com), drive substantial revenue by
catering to the needs of businesses that require ongoing
supplies of automotive parts.
4. Competitive Market: AutoZone operates in a highly
competitive market, facing numerous competitors who may
offer lower prices or have more extensive international
operations.

Opportunities Threats

1. Expansion of E-Commerce: The growing trend

towards online shopping presents an opportunity for 1. Economic Fluctuations: The automotive retail sector is
AutoZone to expand its digital and e-commerce sensitive to economic downturns, which can affect
operations, aligning with consumer preferences. discretionary spending on vehicle maintenance.

2. International Market Penetration: Potential to

expand further into new international markets,
leveraging its strong brand to capture demand in 2. Technological Advances: Rapid advances in automotive
rapidly growing automotive sectors in Asia and technology, particularly around electric and hybrid vehicles,
Africa. pose a challenge to traditional parts sales.

3. Growth in Electric Vehicle Market: The rising

prevalence of electric vehicles, which grew by over 3. Regulatory Changes: Compliance with stricter emissions
40% in the U.S. market alone in 2021, offers new and safety regulations could necessitate significant changes in
product lines and services for this segment. operational practices and increase costs.

4. Labor Market Challenges: The retail industry faces high

4. Enhancing Supply Chain Efficiency: Ongoing turnover rates and increasing pressure for higher wages. In the
innovations in logistics and supply chain U.S., retail worker unionization efforts are gaining momentum,
management could significantly improve efficiency, potentially increasing labor costs and affecting operational
reduce costs, and enhance customer satisfaction. flexibility.