Auto Parts Retailers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 15,500 auto parts retailers in the US sell automotive parts, supplies, and accessories. Companies may also sell batteries, lubricants, audio equipment, tires, and used products. While the majority of revenue typically comes from do-it-yourself (DIY) customers, large companies may have sizable commercial (do-it-for-me, DIFM) sales. Some companies offer repair, installation, or maintenance services.
Increasing Vehicle Complexity
The growing use of electronic components has increased the complexity of vehicles, resulting in a shift away from DIY jobs and towards DIFM.
Competition
Auto parts retailers compete with a variety of alternative sources, including traditional retailers (mass merchandisers, discount stores, hardware stores, supermarkets, drugstores, convenience stores), online marketplaces, and auto dealers.
Industry size & Structure
The average auto parts retailer operates out of a single location, employs fewer than 20 workers, and generates about $3-4 million annually.
- The auto parts retailing industry consists of about 15,500 companies that employ 398,000 workers and generate about $57 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 20 firms account for about 59% of industry sales.
- Large companies include AutoZone, Advance Auto Parts, and O'Reilly Automotive Stores.
- Some large auto parts distributors have retail operations.
Industry Forecast
Auto Parts Retailers Industry Growth
Recent Developments
Sep 19, 2024 - Sales Down, Employment Up
- Sales for auto parts, accessories, and tire stores fell 0.2% in June 2024 year over year and were down 3.3% month over month, according to the Census Bureau. Producer inflation for auto parts and accessories retailers increased 4% in July 2024 compared to a year ago, according to producer price data from the US Bureau of Labor Statistics (BLS). Auto parts retail industry employment increased almost 2% in July 2024 year over year. Average wages for nonsupervisory employees in the industry fell 0.8% in July year over year, reaching $22.49 per hour.
- Drivers drove 2.7 trillion miles in 2023, which is in line with recent years, with nearly 40% of driving trips made in vehicles older than 10 years, according to the recently released 2023 American Driving Survey from the AAA Foundation for Traffic Safety. The report stated that the share of older cars on the roads is a concern. “These vehicles often lack modern safety features and may be in poorer mechanical condition, potentially contributing to a higher risk of crashes,” it said. The number of driving trips taken per day averaged less than 2.5 per day with a duration of just over an hour and totaled 30 miles. Most driving trips taken in 2023 were to run errands (31%) and for work commutes (27%).
- US light duty aftermarket sales grew by 8.6% in 2023, reaching $392 billion, according to the 2025 Auto Care Factbook released by the Auto Care Association. The sales surpassed the previous year’s projections of 8.1% despite challenges such as persistent inflation. Light vehicle growth is expected to be 5.9% higher in 2024. The industry is expected to continue to improve, with a sales forecast of $617.3 billion in 2027 for total light, medium, and heavy duty automotive aftermarket. Consumers seeking affordable options for service and repair to keep their cars running are driving stable growth in the industry. According to Bill Hanvey, president and CEO, Auto Care Association, “As credit card debt in the U.S. reaches an all-time high of more than $17 trillion in 2024, Americans are feeling the weight of inflation and choosing more cost-saving options when possible, including with the maintenance of their cars.”
- Leading auto parts distributor Genuine Parts Company (GPC) has acquired the largest US independent NAPA store owner, according to Jobber Nation. The strategic acquisition of Motor Parts & Equipment (MPEC) announced in May 2024 adds 181 NAPA Auto Parts stores in Illinois, Indiana, Iowa, Michigan, Minnesota, and Wisconsin. According to GPC’s President and CEO-elect Will Stengel, the deal aligns with the company’s initiative to own more NAPA stores in priority markets. GPC has been acquiring independent NAPA member companies over the years. GPC’s distribution network in North America includes almost 80 distribution centers and 6,800 NAPA Auto Parts Stores, including about 1,500-company owned stores.
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