AutoZone grows online sales by 5.6% in 2015
September 23, 2015 04:26 PM
Auto parts retailer AutoZone Inc. revved up its online sales in fiscal 2015.
AutoZone, No. 107 in the Internet Retailer 2015 Top 500 Guide, reported online sales of $362.5 million for the 2015 fiscal year, up 5.6% from $343.1 million during fiscal 2014. AutoZone’s online sales include all sales from AutoZone.com, AllData.com, which sells diagnostic and related repair work software, and AutoAnything.com, an online auto parts retailer.
While online sales grew year-over-year in fiscal 2015, online sales as a percentage of overall sales remained flat, with e-commerce accounting for 3.6% of total sales, same as in 2014.
For the fourth quarter, AutoZone reported e-commerce sales of $111.25 million, up 2.0% from $109.10 million during the same time last year.
“Regarding online sales opportunities, there continued to be great opportunities for growth on both a business-to-business basis and to individual customers, or B2C,” CEO William Rhodes told analysts on the merchant’s year-end earnings call yesterday, according to a transcript from SeekingAlpha.com. “These businesses are relatively small for us representing just 3.4% of our total sales mix on the quarter. Overall, we feel like we’re well positioned in 2016 to improve on 2015’s results.”
Rhodes told analysts that AutoZone is looking at beefing up its mobile offerings heading into the new fiscal year.
“We’ve also been focused on improving our mobile app to be relevant across our fastest growing online category,” he said. “As customers have become much more tech and mobile savvy, we have to have a sales proposition that touches all the ways they desire to interact with us.”
For the fiscal year ended Aug. 29, AutoZone reported:
- Total domestic commercial sales of $1.82 billion, up 13.0% from $1.61 billion last year.
- Total sales of $10.19 billion, up 7.5% from $9.48 billion in fiscal 2014.
- Domestic comparable-store sales increased 3.8%.
- Net income of $1.16 billion compared with net income of $1.069 billion in 2014.
For the fourth quarter of fiscal 2015, AutoZone reported:
- Total domestic commercial sales of $603.6 million, up 13.1% from $533.8 million.
- Total sales of $3.29 billion, up 7.9% from $3.05 billion.
- Domestic comparable-store sales increased 4.5%.
- Net income of $401.1 million, compared with $373.7 million in the same quarter last year.
AutoZone increased its automotive service offerings when it teamed in June with Openbay, an online marketplace for auto repair, in a service that enables Boston-area consumers to comparison shop and book automotive repair and maintenance services with a network of local professionals directly from AutoZone.com. Openbay gets a 10% fee per transaction when a consumer books service with an affiliated repair shop.
AutoZone has 5,141 stores in 49 states plus the District of Columbia and Puerto Rico. It also has 441 stores in Mexico and seven stores in Brazil and 20 Interamerican Motor Corp. branches for a total of 5,609 stores. In September 2014 AutoZone acquired Interamerican Motor Corp., a distributor of original equipment replacement parts for European and Asian vehicles in the U.S., for an undisclosed amount.