Thread regarding Advance Auto Parts Inc. layoffs

Running 2 industries from the same box

There seems to be a complete lack of understanding that they are in 2 industries simultaneously: omnichannel retail and commercial parts distribution. Trying to run them both out of the same box under the same brand creates constant tradeoffs that undermine performance in one sector or both. Imagine if Ace Hardware acquired Grainger Industrial Supply and tried to run both businesses out of the same box, with the same staff, under the same Ace Hardware brand. It would destroy the commercial parts relationships and signal to the commercial customers they were not serious about the commercial parts business. It would also drive costs too high to be competitive in retail. Two once-great companies would die a slow, painful death.

Excellent analogy by @Q0yAEwB-1kmk.

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Post ID: @OP+Q3MXvsr

7 replies (most recent on top)

O'Reilly started as a commercial company that went into retail while Advance and Autozone started on the retail side. Advance bought CARQUEST and assumed that would put them more in the commercial space but has lost market share because they are retail at the core. They apply retail mentality to commercial business while applying strategies that work for other b2b businesses without realizing that the only thing that really matters are availability, knowledge, and part delivery. Everything else is useless without those things.

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Post ID: @coui+Q3MXvsr

O'Reilly isn't doing it successfully, they're just doing it better than Advance. Look at ORLY vs S&P500 for the last year. AZO, ORLY, and AAP are all getting their clocks cleaned by Amazon, RockAuto, Walmart, and soon Icahn Automotive.

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Post ID: @ctjz+Q3MXvsr

It's the leprechaun's man, you know the little green guys, they are everywhere now

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Post ID: @6vof+Q3MXvsr

So how does O'reilly manage this model so successfully?

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Post ID: @5uuj+Q3MXvsr

Advance would have been better off had they used CARQUEST for commercial customers and left Advance for it's retail customers. This company has made countless mistakes over and over again yet the heads at the top do not roll, they only get richer.

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Post ID: @1tyf+Q3MXvsr

Here's an article that shows just how they manage to piss off a shop customer: http://wfxl.com/news/local/should-you-change-your-own-oil

"On the other hand, in a guide on their website Advance Auto Parts gives three reasons why you should change your own oil."

So tell your retail customers to save on repairs and change their own oil? As a shop owner, that's not marketing that helps repair shops so why help them by buying from them.

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Post ID: @1bym+Q3MXvsr

I agree, when you put it that way it shows what a bad plan this is.

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Post ID: @jdm+Q3MXvsr

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