Auto parts. I believe you to be right, and this is my fear too. The thing is though, when will all this happen to noticeably affect the auto retailers, auto parts retailers? I have believed, couple years back, that internet purchase of parts would really crimp stocks like Autozone, Advance Auto Parts, Genuine Parts. Instead though, these companies seem to have co-opted the web, and have their own websites.
When I am looking for parts for my cars, it's for simple stuff like bulb, wiper blades, etc. Can be bought on-line and delivered to me. If I have a real problem with a car, I go to a mechanic, and they diagnose and buy the replacement parts. Usually from one of the local AAP, AZO places that deliver the parts to them. Or sometimes I just will pay the high dealer's prices, presuming they will service the car properly.
For the home mechanic who can wait for a part, yes, I can see them searching the web for the cheapest price. That seems to me to be a very small segment of the repair population.
EV is a threat to the parts business, but again, there are so many ice cars on the road, and people still buying these cars and trucks, that I don't see the parts repair business of these supplying companies being decimated...yet.
So I'm a buyer and holder for now. Continuing to hold AZO, recently added to LKQ, and now starting few shares of GPC. |
