Todd, thanks for the interesting info. From AZO's they say their
largest is 8100 sq ft. (200 stores), and they expect in 1997 around 85% of the new store to be 6600. Have you ever been in a PBY, to check out their prices, esp. compared to AZO. If they install things for free, and have the same or lower prices, this could be the reason for the lower margins, esp. since AZO has a much greater economy of scale. However, if you hypothesis is true, then that would bode poorly for PBY's competative advantage as they begin to bid for the same markets as AZO.
This Parts USA, I take it they are a small, private company, at least
compared to PBY ($1.8B sales), and AZO ($2.4B sales). I wonder why the need for such large stores, I mean how much stuff related to cars can be profitabley sold? If it is like you say, it doesn't make sense to make them so big.
Ariel- |
