AGB 2023.8 - AutoZone (AZO)

Commercial Growth + Ramp in New Store Openings

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AutoZone

AutoZone is the leading auto parts retailer in the U.S., mainly known for servicing the do-it-yourself (DIY) market. As of 2023, the company operated over 6.3k stores in the U.S., 740 stores in Mexico and 100 stores in Brazil. Almost half of AutoZone’s domestic stores are located in its top 10 states, which are Texas, California, Florida, Ohio, Illinois, North Carolina, Michigan, Pennsylvania, New York and Georgia. Compared to the other large auto parts retailers, AutoZone has more consistent coverage across regions, whereas O’Reilly Auto Parts (you can read our write-up from 2021 here) is better known in the Midwest/West and Advanced Auto Parts (AAP) is better known in the Northeast.

AutoZone stores are roughly 6.5k in square footage, with approximately 90%-95% of that dedicated to selling space. Almost half of the store is for selling hard parts, which are the parts necessary to fix or to replace car engines.