Securities and exchange commission


Download 0.55 Mb.
NameSecurities and exchange commission
page2/6
A typeDocumentation
manual-guide.com > manual > Documentation
1   2   3   4   5   6

5


Total Store

Store Format Number of Stores Square Footage(1)

------------ ---------------- -----------------
8,100 sq. ft.................................... 201 1,628,100

7,700 sq. ft.................................... 303 2,333,100

6,600 sq. ft.................................... 452 2,983,200

5,400 sq. ft.................................... 446 2,408,400

4,000 sq. ft.................................... 21 84,000

----- ---------

Total ..................................... 1,423 9,436,800

===== =========
- --------------------------

(1) Total store square footage is based on the Company's standard store

formats, including normal selling, office, stockroom and receiving space, but

excluding excess space not utilized in a store's operations.
Approximately 85% to 90% of each store is selling space, of which

approximately 30% to 40% is dedicated to automotive parts inventory. The parts

inventory area is fronted by a counter staffed by knowledgeable parts personnel

and equipped with proprietary electronic parts catalogs. The remaining selling

space contains gondolas for accessories, maintenance items, including oil and

air filters, additives and waxes, and other parts together with specifically

designed shelving for batteries and, in many stores, oil products.
Approximately three quarters of the Company's stores are freestanding, with

the balance principally located within strip shopping centers. Freestanding

large format stores typically have parking for approximately 45 to 50 cars on a

lot of approximately 3/4 to one acre. The Company's 5,400 and 4,000 square

foot stores typically have parking for approximately 25 to 40 cars and are

usually located on a lot of approximately 1/2 to 3/4 acre.
STORE PERSONNEL AND TRAINING
While subject to fluctuation based on seasonal volumes and actual store

sales, the 4,000, 5,400 and 6,600 square foot stores typically employ 12 to 18

persons, including a manager and an assistant manager, and the larger stores

typically employ 14 to 23 persons. The Company generally hires personnel with

prior automotive experience. Although the Company relies primarily on

on-the-job training, it also provides formal training programs, which include

regular store meetings on specific sales and product issues, standardized

training manuals and a specialist program under which store personnel can

obtain Company certification in several areas of technical expertise. The

Company is testing a multimedia program that will permit store personnel to

train at their own pace. The Company supplements training with frequent store

visits by management.
The Company provides financial incentives to store managers through an

incentive compensation program and through participation in the Company's stock

option plan. In addition, AutoZone's growth has provided opportunities for the

promotion of qualified employees. Management believes these opportunities are

an important factor in AutoZone's ability to attract, motivate and retain

quality personnel.
The Company supervises store operations primarily through approximately 196

area advisors who report to one of 27 district managers, who, in turn, report

to one of six regional managers, as of August 31, 1996. Purchasing,

merchandising, advertising, accounting, cash management, store development and

other store support functions are centralized in the Company's corporate and

administrative headquarters in Memphis, Tennessee. The Company believes that

such centralization enhances consistent execution of the Company's

merchandising and marketing strategy at the store level.
6
STORE AUTOMATION
In order to assist store personnel in providing a high level of customer

service, all stores have proprietary electronic parts catalogs that provide

parts information based on the make, model and year of an automobile. The

catalog display screens are placed on the hard parts inventory counter so that

both employees and customers can view the screen. In addition, the Company's

satellite system enables the Company to speed up credit card and check approval

processes and locate parts at neighboring AutoZone stores.
All stores utilize the Company's computerized Store Management System,

which includes optical character recognition scanning and point-of-sale data

collection terminals. The Store Management System provides productivity

benefits, including lower administrative requirements and improved personnel

scheduling at the store level, as well as enhanced merchandising information

and improved inventory control. The Company believes the Store Management

System also enhances customer service through faster processing of transactions

and simplified warranty and product return procedures.

PURCHASING AND DISTRIBUTION
Merchandise is selected and purchased for all stores at the Company's

headquarters in Memphis. No one class of product accounts for as much as 10%

of the Company's total sales. In fiscal 1996, the Company purchased products

from approximately 200 suppliers and no single supplier accounted for more than

6% of the Company's total purchases. During fiscal year 1996, the Company's

ten largest suppliers accounted for approximately 31% of the Company's

purchases. The Company generally has no long-term contracts for the purchase

of merchandise. Management believes that AutoZone's relationships with

suppliers are excellent. Management also believes that alternative sources of

supply exist, at similar cost, for substantially all types of product sold.
Substantially all of the Company's merchandise is shipped by vendors to the

Company's distribution centers. Orders are typically placed by stores on a

weekly basis with orders shipped from the warehouse in trucks operated by the

Company on the following day.
COMPETITION
The Company competes principally in the D-I-Y and, more recently, the

commercial automotive aftermarket. Although the number of competitors and the

level of competition experienced by AutoZone's stores varies by market area,

the automotive-aftermarket is highly fragmented and generally very competitive.

The Company believes that the largest share of the automotive-aftermarket is

held by independently owned jobber stores which, while principally selling to

wholesale accounts, have significant D-I-Y sales. The Company also competes

with other automotive specialty retailing chains and, in certain product

categories, such as oil and filters, with discount and general merchandise

stores. The principal competitive factors which affect the Company's business

are store location, customer service, product selection and quality, and price.

While AutoZone believes that it competes effectively in its various geographic

areas, certain of its competitors have substantial resources or have been

operating longer in particular geographic areas.
TRADEMARKS
The Company has registered several service marks and trademarks in the

United States Patent and Trademark office, including its service mark

"AutoZone" and its trademarks "AutoZone," "Duralast," "Valucraft," "Ultra

Spark," "Deutsch," "Albany" and "Alldata". The Company believes that the

"AutoZone" service mark and trademarks have become an important component in

its merchandising and marketing strategy.
7
EMPLOYEES
As of August 31, 1996, the Company employed approximately 26,800 persons,

approximately 18,700 of whom were employed full-time. Approximately 86% of the

Company's employees were employed in stores or in direct field supervision,

approximately 7% in distribution centers and approximately 7% in corporate and

support functions.
The Company's employees currently are not members of any unions. The

Company has never experienced any material labor disruption. Management

believes that its labor relations are generally good.
ITEM 2 PROPERTIES
The following table sets forth certain information concerning AutoZone's

principal properties:
SQUARE NATURE OF

LOCATION PRIMARY USE FOOTAGE OCCUPANCY

-------- ----------- ------- ----------
Memphis, TN Corporate and Administrative Office 360,000 Owned

Lavonia, GA Distribution Center 421,700 Owned

Lexington, TN Distribution Center 341,000 Owned

Danville, IL Distribution Center 304,500 Owned

Memphis, TN Express Parts Warehouse 233,100 Leased

Lafayette, LA Distribution Center 464,000 Owned

San Antonio, TX Distribution Center 217,000 Owned

Phoenix, AZ Distribution Center 212,000 Owned

Zanesville, OH Distribution Center 550,000 Owned
The Company relocated its headquarters in Memphis, Tennessee in October

1995 and completed the sale of its former headquarters in December 1995. The

Company opened a new distribution center in Zanesville, Ohio in February 1996.

The lease of the Express Parts warehouse in Memphis expires in March 2000. The

Company also rents additional warehouse space, various district offices and

training and other office facilities which are not material in the aggregate.
At August 31, 1996, the Company leased 538 and owned 885 of its 1,423 store

properties. Original lease terms generally range from five to 20 years with

renewal options. Leases on 248 stores that are currently operating expire

prior to the end of fiscal 2001; however, leases on 231 of such stores contain

renewal options.

ITEM 3 LEGAL PROCEEDINGS
AutoZone is a party to various claims and lawsuits arising in the ordinary

course of business. The Company does not believe that such claims and lawsuits,

singularly or in the aggregate, will have a material adverse effect on its

business, properties, results of operations, financial condition or prospects.
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fiscal

quarter (17 weeks) ended August 31, 1996.
8
EXECUTIVE OFFICERS OF THE REGISTRANT
The following table lists AutoZone's executive officers. The title of each

executive officer includes the words "Customer Satisfaction" which reflects the

Company's commitment to customer service as part of its marketing and

merchandising strategy. Officers are elected by and serve at the discretion of

the Board of Directors.
J.R. HYDE, III, 53--CHAIRMAN AND CHIEF EXECUTIVE OFFICER

J. R. Hyde, III, has been Chairman of the Board of Directors and Chief

Executive Officer since 1986. Previously, Mr. Hyde was Chief Executive Officer

of Malone & Hyde (the former parent company of AutoZone). Mr. Hyde has been

employed by AutoZone or Malone & Hyde since 1965.
JOHNSTON C. ADAMS, JR., 48--VICE CHAIRMAN, CHIEF OPERATING OFFICER, AND

DIRECTOR

Johnston C. Adams, Jr. was elected Vice Chairman and Chief Operating

Officer and Director in March 1996. Previously he was Executive Vice

President-Distribution since 1994. From 1990 to 1994 Mr. Adams was a co-owner

of Nicotiana Enterprises, Inc., a company primarily engaged in food

distribution. From 1983 to 1990, Mr. Adams was President of the Miami Division

of Malone & Hyde. The Company anticipates that Mr. Adams will be elected

President and Chief Operating Officer upon Mr. Hanemann's retirement on December

12, 1996.
TIMOTHY D. VARGO, 44--VICE CHAIRMAN AND DIRECTOR

Timothy D. Vargo was elected Vice Chairman and Director in March 1996.

Previously, he was Executive Vice President-Merchandising and Systems

Technology since June 1995 and had been Senior Vice President-Merchandising

since March 1995. Previously, Mr. Vargo was Senior Vice

President-Merchandising for the Company from 1986 to 1992 and was Director of

Stores for AutoZone from 1984 to 1986.
THOMAS S. HANEMANN, 59--PRESIDENT AND DIRECTOR

Thomas S. Hanemann has been a Director and President since 1994. He had

previously been Executive Vice President-Stores and Distribution between 1992

and 1994 and had been Senior Vice President-Stores of AutoZone since 1986.

Previously, Mr. Hanemann was President of Ike's and Super D, drug store

divisions of Malone & Hyde. Mr. Hanemann has been employed by AutoZone or

Malone & Hyde since 1974. Mr. Hanemann has expressed his intention to retire

as President of the Company as of December 12, 1996.
LAWRENCE E. EVANS, 52--EXECUTIVE VICE PRESIDENT-STORE DEVELOPMENT

Lawrence E. Evans has been Executive Vice President-Store Development since

1995. Previously he was Senior Vice President-Development from 1993 to 1995

and Vice President-Real Estate since 1992, Mr. Evans was Director of Real

Estate from 1991, and had been an attorney for either Malone & Hyde or AutoZone

since 1986. Mr. Evans was first employed by Malone & Hyde from 1969 until 1976

and returned to Malone & Hyde in 1986.
ROBERT J. HUNT, 47--EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

Robert J. Hunt has been Executive Vice President and Chief Financial

Officer since 1994. Prior to that time, Mr. Hunt was Executive Vice

President, Chief Financial Officer, and a Director of the Price Company from

1991 to 1993. Previously, Mr. Hunt had been employed by Malone & Hyde since

1984, where he was Executive Vice President and Chief Financial Officer from

1988 to 1991.
SHAWN P. MCGHEE, 33--EXECUTIVE VICE PRESIDENT-MERCHANDISING

Shawn P. McGhee was elected Executive Vice President-Merchandising in 1996.

Previously, he was Senior Vice President-Merchandising since 1994, Vice

President-Merchandising since 1993, and a Senior Product Manager since 1991.

Mr. McGhee commenced his employment with the Company in 1988.
ANTHONY DEAN ROSE, JR., 36--SENIOR VICE PRESIDENT-ADVERTISING

Anthony Dean Rose, Jr. has been Senior Vice President-Advertising since

1995. Prior to that time, he had been Vice President-Advertising since 1989

and a Director of Advertising since 1987. Mr. Rose has been employed by

AutoZone or Malone & Hyde since 1982.
9
STEPHEN W. VALENTINE, 34--SENIOR VICE PRESIDENT-SYSTEMS TECHNOLOGY AND SUPPORT

Stephen W. Valentine has been Senior Vice President-Systems Technology and

Support since 1995. Prior to that time, he had been Vice President-Systems

Technology and Support since 1994, and a Director of Store Management Systems

since 1990. Mr. Valentine commenced his employment with the Company in 1989.
MICHAEL E. BUTTERICK, 45--VICE PRESIDENT-CONTROLLER

Michael E. Butterick has been Vice President-Controller since 1995. Prior
1   2   3   4   5   6

Related:

Securities and exchange commission iconNeither the Securities and Exchange Commission nor any state securities...

Securities and exchange commission iconNeither the securities and exchange commission nor any state securities...

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission

Securities and exchange commission iconSecurities and exchange commission




manual


When copying material provide a link © 2017
contacts
manual-guide.com
search