Advance Auto Parts, Inc. (AAP): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde rapide de la vente au détail de pièces automobiles, Advance Auto Parts, Inc. (AAP) se distingue comme une puissance stratégique, connectant de manière transparente la mécanique professionnelle, les amateurs de bricolage et les propriétaires de véhicules grâce à un modèle commercial innovant. By leveraging a comprehensive network of retail stores, cutting-edge digital platforms, and a robust supply chain, AAP has transformed the traditional automotive parts marketplace into a dynamic, customer-centric ecosystem that delivers convenience, expertise, and unparalleled value across multiple segments of L'industrie de la maintenance automobile.

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: partenariats clés

Fabricants et fournisseurs automobiles

Advance Auto Parts maintient des partenariats stratégiques avec plus de 500 fabricants et fournisseurs de pièces automobiles à l'échelle mondiale. Les partenaires clés comprennent:

Partenaire	Détails du partenariat	Volume de l'offre annuelle
Bosch	Fournisseur de composants automobiles primaires	275 millions de dollars en acquisition de pièces
Delphi Technologies	Systèmes électriques et électroniques	180 millions de dollars en composants annuels
Fédéral	Pièces de moteur et de groupe motopropulseur	220 millions de dollars en fournitures annuelles

Sociétés de logistique et de distribution

Advance Auto Parts collabore avec plusieurs partenaires logistiques pour optimiser l'efficacité de la chaîne d'approvisionnement:

• XPO Logistics - Partenaire de distribution primaire
• Freight UPS - Services de transport régional
• FedEx Supply Chain - entreposage et épanouissement

Partenaire de logistique	Volume de distribution annuel	Entrepôts gérés
Xpo logistique	42 millions de pièces par an	17 centres de distribution
Freight UPS	28 millions de pièces par an	9 centres de distribution régionaux

Provideurs de technologie et de services numériques

Les partenariats technologiques stratégiques comprennent:

• Microsoft Azure - Infrastructure cloud
• Salesforce - Gestion de la relation client
• SAP - Planification des ressources d'entreprise

Réseaux de réparation et d'entretien des véhicules

Advance Auto Parts s'associe à:

• Carquest Auto Pièces - Réseau de réparation conjoint
• Ateliers de réparation automobile indépendants
• Associations de mécanique professionnelle

Carte de crédit et partenaires de service financier

Partenaire financier	Type de service	Volume de transaction annuel
Synchrony Financial	Services de crédit à la consommation	1,2 milliard de dollars de transactions de crédit
Wells Fargo	Banque commerciale	500 millions de dollars de services financiers

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: activités clés

Ventes de pièces automobiles au détail

Advance Auto Parts exploite 5 604 magasins dans 49 États au troisième trimestre 2023. Les revenus totaux des magasins de détail en 2022 étaient de 11,4 milliards de dollars. La société maintient un inventaire complet de pièces et d'accessoires automobiles.

Métrique	Valeur
Total des magasins	5,604
Revenus de vente au détail (2022)	11,4 milliards de dollars
SKU de magasin moyen	22 000+ pièces

Gestion de la plate-forme de commerce électronique

Le canal de vente numérique a généré 2,1 milliards de dollars de revenus au cours de 2022. La plate-forme en ligne traite environ 1,2 million de transactions numériques par mois.

• Taux de croissance des ventes numériques: 14,3% en glissement annuel
• Téléchargements d'applications mobiles: plus de 3 millions
• Site Web Visiteurs mensuels uniques: 8,5 millions

Chaîne d'approvisionnement et optimisation des stocks

Advance Auto Parts exploite 19 centres de distribution à travers les États-Unis. La valeur totale des stocks au troisième rang 2023 était de 3,8 milliards de dollars.

Métrique de la chaîne d'approvisionnement	Valeur
Centres de distribution	19
Valeur d'inventaire	3,8 milliards de dollars
Expéditions quotidiennes	75,000+

Service client et support technique

L'équipe de support client gère environ 500 000 demandes techniques chaque mois. Le temps de réponse moyen est de 12 minutes sur les canaux numériques.

• Représentants de soutien technique: plus de 1 200
• Channeaux de support: téléphone, e-mail, chat, en magasin
• Évaluation de satisfaction du client: 4.2 / 5

Solutions de diagnostic et de réparation automobiles

Le segment des ventes commerciales a généré 3,6 milliards de dollars de revenus en 2022. Les solutions de réparation professionnelles couvrent 95% des marques et modèles de véhicules.

Solutions de diagnostic métrique	Valeur
Revenus de ventes commerciales	3,6 milliards de dollars
Couverture des véhicules	95%
Clientèle professionnelle	180,000+

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: Ressources clés

Réseau de magasins de détail national étendu

Au quatrième trimestre 2023, Advance Auto Parts exploite 5 627 magasins au total des pièces automobiles au détail aux États-Unis, à Porto Rico et au Canada. La ventilation du magasin comprend:

Type de magasin	Nombre d'emplacements
Magasins appartenant à l'entreprise	5,327
Magasins indépendants	300

Systèmes de gestion des stocks avancés

Investissement technologique: 178 millions de dollars alloués aux systèmes de transformation numérique et de gestion des stocks en 2023.

• Suivi des stocks en temps réel sur tous les emplacements
• Algorithmes de stockage prédictif avancé
• Plate-forme de gestion des stocks basée sur le cloud

Grande réputation de marque

Évaluation de la marque à partir de 2023: 1,2 milliard de dollars

Métrique de la marque	Valeur
Reconnaissance de la marque	87% dans le segment du marché secondaire automobile
Évaluation de fidélisation de la clientèle	4.3/5

Infrastructure technologique numérique et mobile

Investissements de plate-forme numérique: 92 millions de dollars en 2023

• Application mobile avec 2,1 millions d'utilisateurs actifs
• Plateforme de commerce électronique générant 1,4 milliard de dollars de revenus annuels
• Chatbot de service client alimenté par AI

Main-d'œuvre qualifiée

Total des employés à partir de 2023: 74 000

Catégorie des employés	Nombre
Employés des magasins de détail	58,500
Personnel d'entreprise et de soutien	15,500

Investissement de formation de la main-d'œuvre: 37 millions de dollars en programmes de développement professionnel et de formation technique en 2023.

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: propositions de valeur

Large gamme de pièces et d'accessoires automobiles

Advance Auto Parts offre environ 391 000 SKU différents entre les pièces automobiles et les catégories d'accessoires. La société maintient une revue d'inventaire approfondie:

Catégorie	Gamme de produits
Composants du moteur	Plus de 45 000 pièces
Freinage	Plus de 37 000 pièces
Systèmes électriques	Plus de 52 000 pièces
Suspension	29 000+ pièces

Prix ​​compétitifs et offres de valeur

En 2023, Advance Auto Parts maintient des stratégies de tarification compétitives avec:

• Plage de prix moyen du produit: 15 $ - 250 $
• Remises promotionnelles annuelles: 18-22% du total des revenus
• Adhésion au programme de fidélité: 4,2 millions de membres actifs

Options d'achat pratiques en magasin et en ligne

Les canaux de distribution comprennent:

Canal	Nombre d'emplacements / plateformes
Magasins physiques	5 628 emplacements
Plateforme de commerce électronique en ligne	AdvanceAutoparts.com
Application mobile	Plateformes iOS et Android

Conseils techniques professionnels et soutien

Les ressources de support technique comprennent:

• Plus 1 200 techniciens automobiles certifiés
• Assistance technique en ligne 24/7
• Services de diagnostic gratuits dans certains emplacements

Disponibilité rapide des pièces et service le jour même

Capacités de service:

Fonctionnalité de service	Métrique de performance
Disponibilité des pièces le jour même	92% des pièces standard
Transfert de magasin à magasin	Dans les 24 heures
Réalisation des commandes en ligne	Fenêtre de livraison de 48 à 72 heures

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: relations avec les clients

Adhésion au programme de fidélité

Advance Auto Parts exploite le Programme de fidélité Speed ​​Perks avec les mesures suivantes:

• Plus de 30 millions de membres actifs en 2023
• Les membres reçoivent 20% de réduction sur les achats en ligne
• Gagnez 1 point par 1 $ dépensé

Métrique du programme de fidélité	Valeur
Membres de la fidélité totale	30,000,000+
Taux de rachat de points	12.5%
Dépenses moyennes des membres	385 $ par an

Support client en ligne et mobile

Les canaux de support numériques comprennent:

• Assistance de chat en ligne 24/7
• Application mobile avec suivi des commandes
• Temps de réponse moyen: 3,2 minutes

Engagement client professionnel et bricolage

Segment de clientèle	Pourcentage des ventes totales
Mécanique professionnelle	45%
Clients de bricolage	55%

Services de consultation technique

Offres de support technique:

• Lecture de code de diagnostic gratuit
• Guides de réparation en ligne
• Ligne d'assistance technique professionnelle

Recommandations de maintenance automobile personnalisée

Caractéristiques de personnalisation:

• Alertes d'entretien spécifiques au véhicule
• Suggestions de remplacement des pièces prédictives
• Recommandations par e-mail personnalisées

Métrique de personnalisation	Valeur
Engagement de recommandation personnalisé	38%
Taux de conversion à partir des recommandations	22.5%

Advance Auto Parts, Inc. (AAP) - Modèle commercial: canaux

Emplacements de magasin de détail

Depuis 2023, Advance Auto Parts fonctionne 5 655 emplacements au total des magasins aux États-Unis. Le réseau de magasins comprend:

Type de magasin	Nombre d'emplacements
Advance Auto Parts Stores	5,655
Magasins commerciaux	1,218

Plateforme de commerce électronique en ligne

Le canal de vente numérique comprend AdvanceAutoparts.com, qui a généré 2,3 milliards de dollars de revenus en ligne Au cours de l'exercice 2022.

Application mobile

L'application mobile Advance Auto Parts fournit:

• Vérification des stocks en temps réel
• Accès aux coupons numériques
• Capacités de commande en ligne

Service client téléphonique

Les centres d'assistance client gèrent approximativement 3,2 millions d'interactions client par an.

Intégrations du marché tiers

Plateforme de marché	Statut d'intégration
Amazone	Actif
eBay	Actif

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: segments de clientèle

Mécanique automobile professionnelle

En 2023, les mécanismes automobiles professionnels représentaient 35,7% de la clientèle totale des pièces Advance Auto. La société dessert environ 75 000 comptes de mécaniciens professionnels à l'échelle nationale.

Caractéristiques du segment	Détails du marché
Dépenses annuelles moyennes	87 500 $ par mécanicien professionnel
Revenu total du segment	6,5 milliards de dollars en 2023

Les amateurs de maintenance des véhicules de bricolage

Les clients de bricolage représentent 42,5% des segments de clientèle des pièces automobiles avancées, représentant une part de marché importante.

• Total de clientèle de bricolage: 1,2 million de clients actifs
• Valeur d'achat annuelle moyenne: 450 $ par client
• Revenu total du segment: 540 millions de dollars en 2023

Ateliers de réparation automobile

Advance Auto Parts sert 22 500 ateliers de réparation automobile indépendants à travers les États-Unis.

Métriques du segment	2023 données
Revenu total du segment	3,2 milliards de dollars
Dépenses moyennes des magasins	142 000 $ par an

Sociétés de gestion de flotte

Le segment de la gestion de la flotte représente 8,5% de la clientèle de la clientèle des pièces Advance Auto.

• Nombre de clients de flotte: 3 750 comptes d'entreprise
• Revenu total du segment de la flotte: 1,1 milliard de dollars en 2023
• Valeur du compte annuel moyen de la flotte: 293 000 $

Propriétaires de véhicules individuels

Les propriétaires de véhicules individuels représentent 13,3% des segments de clientèle des pièces automobiles avancées.

Métriques des clients	2023 statistiques
Total des clients individuels	750 000 clients uniques
Dépenses annuelles moyennes	275 $ par client
Revenu total du segment	206,25 millions de dollars

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: Structure des coûts

Dépenses opérationnelles des magasins de détail

Au cours de l'exercice 2022, Advance Auto Parts a déclaré des dépenses d'exploitation totales de 4,39 milliards de dollars. Les frais d'occupation des magasins, y compris le loyer, les services publics et l'entretien, ont représenté environ 412 millions de dollars de ces dépenses.

Catégorie de dépenses	Coût annuel
Loyer du magasin	265 millions de dollars
Services publics	87 millions de dollars
Entretien	60 millions de dollars

Inventaire l'approvisionnement et la gestion

Les coûts liés aux stocks représentaient une partie importante des dépenses de la société. En 2022, le coût total des marchandises vendues était de 2,57 milliards de dollars.

• Coûts d'approvisionnement des stocks: 342 millions de dollars
• Dépenses d'entreposage et de distribution: 218 millions de dollars
• Technologie de gestion des stocks: 45 millions de dollars

Salaire et formation des employés

Les coûts de main-d'œuvre pour les pièces automobiles avancées au cours de l'exercice 2022 ont totalisé 1,16 milliard de dollars.

Catégorie de coût de la main-d'œuvre	Dépenses annuelles
Salaire de base	892 millions de dollars
Avantages	178 millions de dollars
Formation et développement	90 millions de dollars

Technologie et infrastructure numérique

Advance Auto Parts a investi 127 millions de dollars dans la technologie et les infrastructures numériques en 2022.

• Infrastructure informatique: 62 millions de dollars
• Développement de la plate-forme de commerce électronique: 38 millions de dollars
• Cybersécurité: 27 millions de dollars

Coûts de marketing et d'acquisition des clients

Les dépenses de marketing pour les pièces automobiles avancées en 2022 s'élevaient à 286 millions de dollars.

Catégorie de dépenses de marketing	Coût annuel
Marketing numérique	112 millions de dollars
Publicité traditionnelle	94 millions de dollars
Programmes de fidélisation de la clientèle	80 millions de dollars

Advance Auto Parts, Inc. (AAP) - Modèle d'entreprise: Strots de revenus

Ventes de vente au détail de pièces automobiles

Advance Auto Parts a généré des ventes nettes totales de 11,1 milliards de dollars pour l'exercice 2022. Les ventes de magasins de détail comprenaient la principale source de revenus avec environ 4 760 magasins à travers les États-Unis.

Canal de vente	Revenus (2022)	Pourcentage des ventes totales
Ventes de magasins de détail	8,3 milliards de dollars	74.8%
Ventes commerciales	2,8 milliards de dollars	25.2%

Transactions de commerce électronique en ligne

Les ventes numériques représentaient environ 1,4 milliard de dollars de revenus pour l'exercice 2022, représentant 12,6% du total des ventes nettes.

Ventes d'équipement de service professionnel

Les ventes commerciales dans des centres de services professionnels et des ateliers de réparation ont généré 2,8 milliards de dollars de revenus en 2022.

• Base de clientèle commerciale d'environ 220 000 emplacements de services professionnels
• Valeur de transaction client commerciale moyenne de 385 $

Monétisation du programme de fidélité

Programme de fidélité des parties Advance Auto, Speed ​​Perks, généré des revenus supplémentaires grâce à des promotions exclusives des membres et des achats répétés.

Métrique du programme de fidélité	2022 données
Membres de la fidélité totale	22 millions
Taux d'achat répété	68%

Frais de diagnostic et de service technique

Bien qu'il ne s'agisse pas d'une source de revenus primaire, le support de diagnostic et de services techniques a généré des revenus supplémentaires grâce à des services à valeur ajoutée pour les clients professionnels.

• Services de test de diagnostic gratuit
• Ressources de support technique pour la mécanique professionnelle

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Value Propositions

You're not just selling parts; you're selling uptime for a professional garage and confidence for a do-it-yourself (DIY) mechanic. Advance Auto Parts' core value proposition in late 2025 is a sharp focus on the Professional (Pro) business, stabilizing the DIY segment, and using supply chain improvements to deliver on speed and availability. The company is guiding for full-year 2025 net sales between $8.4 billion and $8.6 billion, with the Pro channel driving the positive comparable sales growth, so the value proposition must directly serve that segment's need for speed and accuracy.

Availability: Right part, right time, especially for professional customers

For the professional installer, the right part at the right time is money. Advance Auto Parts is directly addressing this with a significant inventory overhaul, which is a big deal. They've added more than 60,000 new SKUs (Stock Keeping Units) year-to-date in 2025, which is an increase of nearly 300% compared to the prior year, showing an intense push to close assortment gaps.

This inventory expansion is supported by the Market Hub store strategy, which is the backbone of their availability promise. These larger stores carry a massive selection, helping to service the local network of traditional stores.

• Market Hub Stores: Stock 75,000 to 85,000 SKUs.
• Typical Stores: Carry 20,000 to 25,000 SKUs.
• Assortment Rollout: Completing the new assortment framework in the top 50 DMAs (Designated Market Areas) by the end of 2025.

Here's the quick math: a Market Hub has about three to four times the parts of a regular store, meaning a Pro customer is far more likely to get their specialized or import part immediately. What this estimate hides is the complexity of managing 90 million unique store SKU combinations across the network, but the focus is clearly on getting the part to the shop faster.

Speed: Same-day or next-day delivery to repair shops

The entire supply chain transformation is geared toward one thing for the Pro customer: reducing the wait time. The company has consolidated 38 U.S. distribution centers down to a target of 16 by 2025, which is a huge operational undertaking, but it's necessary to streamline logistics.

The most concrete result of this push is the measurable improvement in delivery service. They've reported a reduction in delivery time by approximately 10 minutes compared to the previous year, which directly impacts a repair shop's labor efficiency. This focus is paying off, with the store availability KPI (Key Performance Indicator) now in the mid-90s range, a gain of about 100 basis points from Q1 2025.

Selection: Broad coverage from basic maintenance to specialty import parts

Advance Auto Parts offers a comprehensive parts portfolio that spans both national and private label brands, ensuring they cover the full spectrum of vehicle repair needs. The strategy is to offer a blended-box model that serves both the domestic and import vehicle markets.

Their selection covers everything from routine maintenance like oil and filters to complex components like engines, clutches, and climate control parts.

Product Category	Value to Customer	Example Parts
Core Repair Parts	Reliability for critical jobs	Brakes, Chassis, Starters & Alternators
Maintenance Fluids	Full-service capability for Pro shops	Motor oil, Transmission fluid, Antifreeze
Specialty SKUs	Availability for import/complex repairs	Expansion of 60,000+ new SKUs (2025 YTD)

Trust: Quality parts like the DieHard battery line

The DieHard brand is a major value anchor, providing a premium, trusted product that both Pro and DIY customers recognize. It's America's most trusted auto battery, and Advance Auto Parts leverages this brand equity heavily.

For the Pro customer, the DieHard Assurance program is a critical value-add, offering peace of mind that goes beyond the product itself.

• Warranty: 24-month/24,000-mile coverage on professionally installed batteries.
• Roadside Assistance: Reimbursement up to $125.
• Trip Interruption: Coverage up to $250 for eligible meal and lodging expenses.
• Technology: DieHard Platinum AGM batteries are engineered for up to 2X the lifespan of standard flooded batteries.

Expertise: In-store advice for the do-it-yourself (DIY) mechanic

While the Pro business is the growth driver, the DIY customer relies on the store team for guidance. Advance Auto Parts is backing this up with tangible investment in their people and stores. They are providing additional training to team members to boost product knowledge and enhance the overall customer experience.

They are also investing about three times more on maintenance capital expenditure in 2025 year-to-date compared to 2024, with major upgrades at more than 1,000 stores to improve the in-store experience. This investment shows they defintely understand that a clean, well-stocked store with knowledgeable staff is a key differentiator for the DIY segment.

The expertise value is delivered through practical, no-cost services:

• Free battery testing and recycling.
• Free wiper installation.
• Free engine light scanning and checking.
• A loaner tool program.

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Customer Relationships

You're looking at Advance Auto Parts, Inc.'s (AAP) customer relationships, and the quick takeaway is that they run a dual-track approach: high-touch, dedicated service for the professional (Pro) installer, and a highly automated, rewards-driven relationship for the Do-It-Yourself (DIY) customer. This split is critical since Pro sales represented about 50% of total sales in 2024, meaning half of their projected $8.4 billion to $8.6 billion net sales for fiscal year 2025 comes from these complex, relationship-based accounts.

The company focuses on retention and growth in the Pro segment, which is currently driving performance, evidenced by the 0.1% comparable store sales increase in Q2 2025 being fueled by the Pro business.

Dedicated Pro Sales Team for commercial accounts (high-touch)

The relationship with professional repair shops is high-touch and consultative, managed through the Advance Professional platform. This isn't just a transaction; it's a partnership where Advance Auto Parts embeds itself into the shop's daily operations. They offer more than just parts; they offer solutions to help the shop run better. This focus has resulted in a strong performance, including 8 consecutive weeks of US Pro comparable sales growth reported in the first quarter of 2025.

The Pro relationship is supported by a suite of services, not just a sales representative. This dedicated support structure is what keeps the high-volume commercial accounts locked in. Honestly, professional installers need speed and reliability more than anything else.

Relationship Type	Customer Segment	Key Value Proposition
Dedicated Pro Sales Team	Professional Installers (Shops, Garages)	High-touch account management, dedicated delivery, and technical support programs like TechNet.
Self-Service/Loyalty Program	Do-It-Yourself (DIY) Customers	Rewards (Speed Perks), online ordering, and in-store parts look-up assistance.

Self-service e-commerce platforms for both segments

Advance Auto Parts runs e-commerce platforms for both DIY and Pro customers, blending the digital and physical experience. The primary online channel, advanceautoparts.com, generated US$433 million in annual sales in 2024, which is a significant, though still small, portion of total revenue.

For the Pro segment, the self-service relationship is facilitated through a dedicated Pro App and online ordering tools. This allows busy shop owners to order parts outside of business hours, which is a defintely necessary convenience. E-commerce sales are included in the comparable store sales calculation, confirming their role as an integrated sales channel.

Loyalty programs like Speed Perks for DIY customers

The core relationship mechanism for the DIY customer is the tiered Speed Perks loyalty program. This program is designed to drive repeat purchases and increase the customer's lifetime value by offering escalating rewards based on annual spend. The last widely publicized membership number was over 11 million members and counting.

The tiered structure encourages customers to spend more to unlock better benefits, a classic retention strategy.

• Club Level: Spend up to $200 per year; earn 10 points per dollar spent.
• VIP Level: Spend between $200 and $500 per year; earn 11 points per dollar spent, and points carry over.
• Elite Level: Spend $500 or more per year; earn 12.5 points per dollar spent, get priority customer service, and points never expire.

Technical support and training for professional repair shops

To retain the Pro customer, Advance Auto Parts provides extensive, value-added services that go far beyond just selling parts. This is a crucial relationship builder, making the company a partner in the shop's success, not just a vendor. These programs are housed under the Advance Professional banner and include technical and business support.

• TechNet Professional: A network of more than 15,000 independent repair shops that provides a minimum 24-month/24,000-mile nationwide warranty and roadside assistance to their customers, backed by Advance Auto Parts.
• CTI + WTI: Provides industry-leading technical and business management training for technicians and shop managers.
• MotoLogic: Gives technicians access to unedited OEM service information and wiring diagrams for accurate diagnostics.
• MotoVisuals: A library of over 400 3D service and repair animations used by shops to explain complex repair recommendations to vehicle owners, increasing transparency and close rates.

In-store consultation and parts look-up assistance

The physical store network, which included 4,285 stores as of April 19, 2025, remains a vital point of customer interaction and service. For the DIY customer, this is often a personal assistance model where store team members help with parts look-up, diagnostics, and advice, like identifying the correct part from a wide inventory of over 900,000 products.

This in-store service is a key differentiator against purely online competitors. The ability to walk in and get an immediate, expert recommendation can make or break a DIY project, plus, the stores serve as pick-up points for online orders, tying the digital and physical experience together for both customer types.

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Channels

You're looking at how Advance Auto Parts gets its product into the hands of both the do-it-yourself (DIY) customer and the professional installer (PRO), and honestly, it's a story of a major shift back to core strengths. The channel strategy for late 2025 is all about optimizing the physical footprint and leveraging that network for rapid, localized delivery, especially after divesting a major wholesale arm.

The company's focus is now clearly on a blended-box model-using the store as a hub for both retail and commercial fulfillment. This is where the capital is going, so we need to track the performance of these integrated channels closely.

Physical Stores: Over 5,700 Locations for Immediate Pick-up

The core channel remains the physical store network, which is undergoing a strategic optimization to ensure market density. As of late 2025, Advance Auto Parts operates a combined network of over 5,700 total locations. This includes approximately 4,818 corporate-owned stores (up from 4,788 at the end of 2024, based on plans to open 30 new locations in 2025) and an additional 934 independently owned Carquest branded stores across North America and the Caribbean.

The strategy is simple: put a store close to the customer. More than 75% of the company's stores are now situated in markets where Advance Auto Parts holds the number one or number two position in store density. This proximity is the bedrock of their speed-of-service promise.

Mobile Delivery Fleet: Direct Delivery to Professional Garages

The mobile delivery fleet is not a separate channel, but a critical service layer built on top of the store network, specifically targeting the higher-margin PRO customer. This channel is being dramatically enhanced through the expansion of larger-format 'market hubs.'

These market hubs are essentially super-stores that function as local distribution centers. A typical Advance Auto Parts store carries 20,000 to 25,000 stock-keeping units (SKUs), but a market hub stocks between 75,000 to 85,000 SKUs. This massive increase in local inventory is what powers the same-day delivery service to professional garages, a non-negotiable expectation in the PRO segment. The company is on a path to have 60 new market hubs by mid-2027, with new openings underway in the Midwest and other key regions in 2025.

E-commerce: AdvanceAutoParts.com

The primary digital channel is the owned e-commerce site, AdvanceAutoParts.com, which serves the DIY customer for both ship-to-home and the popular Buy Online, Pick Up In Store (BOPIS) options. The e-commerce channel is integrated into the comparable store sales metric, highlighting its role as an extension of the physical store channel.

For the 2025 fiscal year, the company is focused on stabilizing this channel after a period of transformation. Here's the quick math on the digital scale:

E-commerce Metric	Value (Fiscal Year 2024)	Notes for 2025
Annual Online Sales (advanceautoparts.com)	Approximately $433 million	Projected to be flat or slightly down in 2025, indicating a focus on store-based fulfillment.
Comparable Store Sales (Q2 2025)	Increased 0.1%	This figure includes e-commerce sales fulfilled from stores, showing a slight stabilization in the overall sales trend.
Conversion Rate (2024 Estimate)	1.5% to 2.0%	A key performance indicator (KPI) for the efficiency of the online channel.

The real opportunity here is using the website for parts look-up and order placement, then fulfilling that order from the nearest physical location. That's how you defintely beat the pure-play online competitors on speed for the urgent repair.

Worldpac: Dedicated B2B Distribution Network

This channel is no longer a part of Advance Auto Parts' core business model in late 2025. The company announced the sale of the Worldpac wholesale parts distribution business to Carlyle for $1.5 billion in cash, with the transaction expected to close before the end of 2024. Worldpac's financial results, which included approximately $2.1 billion in revenue in the 12 months through June 2024, are now reported as discontinued operations in the 2025 financial statements.

The sale allows Advance Auto Parts to simplify its channel focus and direct its capital and management attention squarely on the 'blended box' model-the integration of the Advance Auto Parts and Carquest stores serving both DIY and PRO customers.

Third-Party Marketplaces (Limited Scope)

While the overall auto parts e-commerce aftermarket is a huge business, with third-party (3P) marketplaces playing a significant role, Advance Auto Parts' channel strategy is heavily weighted toward its owned platforms and physical stores. The strategic focus is on controlling the customer experience and inventory flow through AdvanceAutoParts.com and the store network. The lack of material public data on their 3P marketplace sales suggests this remains a limited-scope channel, prioritizing direct control over broader market reach through external platforms.

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Customer Segments

You're looking at Advance Auto Parts, Inc. (AAP) and their customers, and the core takeaway is simple: the business is built on a 'blended-box' model, serving two distinct, equally critical groups-the professional mechanic and the individual car owner. The company's strategic focus in 2025 is on strengthening the Professional side, which is showing real momentum, while stabilizing the Do-It-Yourself segment after a period of restructuring.

The company is projecting full-year 2025 Net Sales from continuing operations to be in the range of $8.4 billion to $8.6 billion, and this revenue is fundamentally split between these two major customer segments. The success of the current turnaround plan hinges on meeting the specialized needs of each group, not just selling parts. That's the quick math.

Do-It-Yourself (DIY) Customers: Individual consumers repairing their own vehicles

This segment represents the individual consumer who buys parts for their own vehicle maintenance or repair. Historically, DIY has made up approximately 50% of the company's total sales, which, based on the midpoint of the 2025 net sales guidance, translates to an estimated annual revenue of around $4.25 billion.

These customers prioritize convenience, in-store product availability, and accessible guidance. They are often less brand-loyal than Pro customers and are highly sensitive to price and promotional offers. The DIY segment showed 'early signs of stabilization' in the second quarter of 2025, but it remains a work in progress for the company.

• Seek convenience and easy access to products.
• Value online resources like installation guides and video tutorials.
• Purchasing behavior is often driven by immediate, non-deferrable repair needs.

Professional (Pro) Customers: Independent garages, dealerships, and service chains

The Professional segment, often called the 'Pro' or 'Do-It-For-Me' (DIFM) business, includes independent repair shops, national service chains, and new car dealerships. This segment has also historically represented approximately 50% of total sales, equating to an estimated $4.25 billion in annual revenue for 2025.

Pro customers are the backbone of the company's growth strategy right now. They demand quality, a broad product assortment, and, crucially, rapid, reliable delivery to minimize vehicle downtime. This focus is paying off: the U.S. Pro business delivered eight consecutive weeks of comparable sales growth as of the first quarter of 2025, a key positive indicator of the company's turnaround efforts.

• Prioritize speed of delivery and product availability for same-day service.
• Benefit from contractual agreements and bulk purchasing power.
• Require a broad range of high-quality, professional-grade parts.

Fleet Operators: Businesses maintaining their own vehicle fleets

Fleet operators are a critical, high-value sub-segment within the broader Professional customer base. These are businesses-ranging from local delivery services to utility companies-that maintain their own large vehicle fleets, requiring a steady, predictable supply of maintenance and repair parts.

Their needs are distinct: they require volume pricing, centralized billing, and specialized commercial programs. Their purchasing decisions are driven by total cost of ownership (TCO) and minimizing vehicle out-of-service time. The company serves this segment through its Pro sales channel, leveraging its supply chain optimization plan, which aims to consolidate distribution centers to 16 by 2025 to improve delivery times and product availability.

Value-Conscious Shoppers: Seeking competitive pricing and promotions

This is a psychographic profile that cuts across both the DIY and Pro segments, but is most pronounced in the DIY space, especially with current macroeconomic headwinds. These customers are actively seeking the best price, utilizing promotions, loyalty programs, and comparing prices across multiple retailers, including non-traditional competitors like Amazon and eBay.

The company addresses this segment through strategic pricing and its loyalty program, Speed Perks, which is essential for retaining the price-sensitive DIY customer. The challenge here is maintaining competitive pricing while improving the adjusted gross margin, which was 43.8% of net sales in Q2 2025.

Customer Segment	Primary Focus	Estimated 2025 Net Sales Contribution (Approx.)	Key 2025 Trend
Professional (Pro)	Repair Shops, Dealers, Fleets (B2B)	$4.25 billion (50% of sales)	Strong comparable sales growth (8 consecutive weeks in Q1 2025)
Do-It-Yourself (DIY)	Individual Car Owners (B2C)	$4.25 billion (50% of sales)	Early signs of stabilization in Q2 2025

Finance: draft a detailed margin analysis comparing the Pro and DIY segments by the end of the month. You defintely need to see where the real profitability lies.

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Cost Structure

You are looking at Advance Auto Parts, Inc.'s cost structure right now because you know that a successful turnaround hinges on cost discipline, not just revenue growth. The company's cost base is defintely high-volume, low-margin retail, dominated by inventory costs and a massive physical footprint, but the current focus is on optimizing that footprint to drive efficiency.

The strategic store closures and supply chain shifts in 2024 have created short-term noise-like liquidation costs-but the long-term goal is a leaner, more profitable operating model. Here's the breakdown of where every dollar goes in late 2025.

Cost of Goods Sold (COGS): Primary cost, managing inventory and supplier costs

The Cost of Goods Sold (COGS) is, predictably, the single largest expense, representing the direct cost of parts and accessories sold. In the second quarter of 2025, Advance Auto Parts, Inc.'s GAAP Gross Profit was $0.9 billion on net sales of $2.0 billion, which means COGS consumed about 56.5% of net sales.

For the full fiscal year 2025, with net sales guidance between $8.4 billion and $8.6 billion, you can project COGS to be in the range of $4.75 billion to $4.87 billion, assuming a stable gross margin.

The pressure here is twofold: global supply chain costs (tariffs are still a threat) and the need for strategic sourcing to improve first costs. The company is working to manage this through:

• Improving inventory management systems.
• Leveraging new distribution centers for better scale.
• Mitigating product cost inflation.

Store Operating Expenses: Rent, utilities, and labor for 5,100+ locations

Store Operating Expenses are bundled primarily into Selling, General, and Administrative (SG&A) costs. This is the second major cost center, covering everything from store rent and utilities to local marketing. The company's footprint as of April 2025 included 4,285 Advance stores plus 881 independently owned Carquest branded stores, totaling over 5,100 locations.

In the second quarter of 2025, Adjusted SG&A expenses were $0.8 billion, or 40.7% of net sales. The good news is that the company saw a reduction in SG&A year-over-year, which management attributes to operating fewer stores following the 2024 optimization plan.

Here's the quick math: keeping SG&A below 41% of sales is critical for hitting the full-year adjusted operating income margin target of 2.0% to 3.0%.

Logistics and Distribution: Significant investment in supply chain and delivery

Logistics costs are a major area of investment and a key driver of competitive advantage. The company is actively reshaping its supply network to speed up delivery, especially to its professional (Pro) customers.

This is a big capital expenditure push, focusing on two things:

• Opening 30 new U.S. stores in 2025, with a focus on larger 'market hubs.'
• Establishing 10 new market hubs in 2025, which are essentially regional distribution centers.

These market hubs are designed to carry a much larger inventory-up to 85,000 SKUs-closer to the customer base, which helps with same-day delivery and reduces expensive emergency transfers between stores.

Personnel Costs: Wages for over 68,000 employees

Personnel costs, mainly wages and benefits for store and distribution center staff, are a substantial fixed cost within SG&A. The company reports having approximately 62,800 total employees as of late 2025, a number that has been adjusted downward due to the store optimization plan.

Labor expenses are a key drag on profitability, but the company is trying to offset rising wages by improving operational efficiency at the store level. A big part of the 2025 strategy involves additional training for associates to enhance the customer experience, which is an investment that must pay off in higher sales to justify the cost.

Technology and E-commerce Infrastructure

Investment in technology is a non-negotiable cost for any retailer right now, and Advance Auto Parts, Inc. is no exception. The company is spending about three times more on maintenance capital expenditure in 2025 compared to 2024.

This increased spending is directly allocated to major upgrades at more than 1,000 stores, focusing on IT infrastructure, new equipment, and systems that improve inventory and delivery accuracy. The goal is simple: a better digital experience for the DIY customer and a faster, more reliable service for the Pro installer.

Here is a summary of the core cost components and their impact on the 2025 financial picture:

Cost Component	2025 Financial Impact/Metric	Strategic Context
Cost of Goods Sold (COGS)	Approx. 56.5% of Net Sales (Q2 2025)	Largest cost; focus on strategic sourcing and inventory optimization.
Store Operating Expenses (SG&A)	Adjusted 40.7% of Net Sales (Q2 2025)	Second largest cost; reduction due to 2024 store closure program.
Store Footprint	4,285 Advance Stores + 881 Carquest stores (April 2025)	Shifting from optimization to growth with 30 new stores planned in 2025.
Logistics Investment	Opening 10 Market Hubs in 2025	Market Hubs carry 75,000 to 85,000 SKUs to enable same-day delivery.
Technology/Capex	3x increase in maintenance capex vs. 2024	Upgrading IT infrastructure and equipment in over 1,000 stores.

Advance Auto Parts, Inc. (AAP) - Canvas Business Model: Revenue Streams

The core of Advance Auto Parts, Inc.'s revenue model is a balanced, blended-box approach, drawing nearly equal sales from its two primary customer segments: the professional installer and the do-it-yourself (DIY) customer. For the full fiscal year 2025, the company projects Net Sales from continuing operations to be in the range of $8.4 billion to $8.6 billion, which is a key metric to track as the company executes its turnaround strategy.

To be clear, while some prior projections may have targeted higher figures, the current, narrowed guidance for 2025 is firmly between $8.4 billion and $8.6 billion. Here's the quick math on the year so far: Net Sales totaled approximately $6.6 billion through the first three quarters of 2025 (Q1: $2.6 billion, Q2: $2.0 billion, Q3: $2.0 billion).

Sales to Professional Customers (Pro) - a key growth driver

The Pro segment, which includes garages, service stations, and auto dealerships, is a critical revenue pillar and the primary focus for comparable sales growth. Historically, sales to professional customers have represented approximately 50% of the company's total sales. This segment is served through a dedicated delivery program, offering quick access to parts-a vital service for commercial repair shops. The company's comparable sales performance in the second quarter of 2025 was specifically noted as being fueled by growth in the Pro business.

Sales to DIY Customers (Retail)

The DIY segment, consisting of individual consumers buying parts for their own vehicle repairs, generates the other half of the revenue, also historically around 50% of total sales. These customers are primarily served through the physical retail store footprint, which, as of July 2025, consisted of 4,292 stores in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. The DIY business showed early signs of stabilization in the second quarter of 2025, which is defintely a positive sign after earlier declines.

E-commerce sales across both segments

E-commerce is not a separate revenue stream but a vital channel for both Pro and DIY customers. The company includes e-commerce sales in its calculation of comparable store sales, demonstrating its integration into the core business model. This channel supports both in-store pickup and direct shipping, offering convenience that captures the modern consumer's wallet share.

Revenue from proprietary brands like DieHard and Carquest

A significant portion of revenue comes from the sale of owned brand automotive replacement parts, accessories, batteries, and maintenance items, which generally carry higher margins. Advance Auto Parts, Inc. leverages powerful proprietary names like DieHard (batteries) and Carquest (parts) to drive sales across both customer segments. The Carquest brand is particularly important in the Pro channel, as the company also serves 842 independently owned Carquest branded stores, generating revenue through distribution center shipments to these locations.

Projected 2025 Net Sales around $8.5 billion (based on guidance)

The company's net sales are a direct reflection of its strategic focus on the blended-box model following the divestiture of its Worldpac business in late 2024. The revenue is recognized primarily at the point of sale. The key revenue components for the 2025 fiscal year are summarized below:

Revenue Stream Component	2025 Full-Year Guidance/Estimate	Q1-Q3 2025 Actual Net Sales
Total Net Sales (Continuing Operations)	$8.4 billion to $8.6 billion	Approximately $6.6 billion
Professional (Pro) Sales Mix (Estimate)	~50% of Total Net Sales	Growth driver for comparable sales
DIY (Retail) Sales Mix (Estimate)	~50% of Total Net Sales	Showing early signs of stabilization
Comparable Store Sales Growth (Guidance)	0.5% to 1.5%	Q2 2025: 0.1% increase

The company's revenue streams are generated through a mix of transactional sales and service-related activities:

• Direct sales of parts and accessories to Pro customers via delivery.
• Retail sales of parts, batteries, and accessories to DIY customers in stores.
• E-commerce sales for both segments, including buy online, pick up in-store.
• Wholesale revenue from shipments to independently owned Carquest stores.
• Sales of high-margin owned brands like DieHard and Carquest.

The company is aiming for an adjusted operating margin of 2.0% to 3.0% for the full year 2025, showing that the revenue generation is tied closely to improved cost management and operational efficiency. Finance: draft a sensitivity analysis on the Pro/DIY mix to see the impact of a 5% shift in either direction by Friday.