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Like most brick-and-mortar stores, the auto part retail industryhas its eye on online competition. The sector is countering thistrend with new strategies and is bolstered by the fact that it is astable one dominated by a small amount of well capitalizedcompanies that are unlikely to have mass closures. AutoZone, as anexample, saw no store closures in Q2 of 2019 and opened 35 newstores.
Another trend favorable to the space: the average length ofvehicle ownership has been increasing over the last 10 years andcar owners are spending more to keep their current car running asopposed to buying new. To stay competitive, auto part stores havebeen focused in on two specific clients: the "Do it Yourself" andthe "Do it For Me" clients, according to Chad Firsel, founder ofthe Chicago-based Quantum Real Estate Advisors.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
