Industry Analysis & Industry Trends
The resilient Auto Parts Stores industry will continue to grow at a slow and steady pace over the next five years. Weak labor and credit markets, depressed new vehicle sales, and the increasing average vehicle age grew the industry during the recession, as consumers chose to buy parts themselves and make their own repairs. In 2013, higher incomes will lead to more new car purchases and leases. This will cause the average age of cars to decrease, hurting demand for parts. However, an increase in commercial sales will stabilize revenue... purchase to read more
Industry Report - Industry Investment Chapter
As a retail industry, auto parts stores have a moderate level of capital intensity. On average, auto parts stores spend $0.15 on capital for every dollar spent on wages. Industry operators that are looking to expand must secure retail storefronts, including computers and fixtures. Larger companies, particularly those serving the commercial market, will also need distribution facilities and trucks for transportation. This might lead to higher capital costs for some industry operators. Wages are the most prominent cost with regard to operations, accounting for an estimated 20.4% of industry revenue in 2013... purchase to read more