Advance Auto Parts: Any Incremental Sales from Walmart Partnership Will Be 'Upside' to 2019 Guidance

Advance Auto Parts: Any Incremental Sales from Walmart Partnership Will Be ‘Upside’ to 2019 Guidance

“The initiatives that we have for Walmart … really kick in toward the back end of the year,” Advance CEO Tom Greco said.

In its full-year outlook for 2019, Advance Auto Parts (AAP) said it expects to generate between $9.65 billion and $9.8 billion in revenue this year. However, that doesn’t factor in potential sales from the company’s recently announced partnership with Walmart, according to Advance President and CEO Tom Greco.

During Advance’s Feb. 19 conference call, Greco said any incremental sales generated from the Walmart partnership “will be all upside” to its full-year revenue guidance. Advance and Walmart announced the partnership in October.

“The initiatives that we have for Walmart … really kick in toward the back end of the year,” Greco told analysts on the call.

Advance and Walmart will implement their plans in phases, according to Greco. In the first phase, set to launch in the first half of 2019, they’ll offer “a broad assortment of our industry-leading parts” on the Walmart website for ship-to-home ordering.

In the second phase, the companies will enable customers to order parts on the Walmart website and pick them up at an Advance store. That capability will be available “toward the back end” of 2019, according to Greco.

Nicole Jefferies, senior vice president – omnichannel at Advance, will lead the partnership, “and we’re building a talented team to work together with our Walmart partners to launch and grow this business,” according to Greco.

“We’re off to a strong start with the AAP and Walmart team members working well together and focused on delivering a compelling value proposition for DIYers,” Greco said during his opening remarks.

Responding to a question from an analyst, Greco said the companies “at some point” will enable customers to order parts on the Walmart website and pick them up at a Walmart store, but he didn’t say when that capability might be implemented.

“We’re rooting this entire partnership in the customer, and what the customer wants is what we’re going to do,” Greco added. “So we’re going to make it as easy as possible for the customer. Obviously, we believe that the convenience of coming into an Advance store is an advantage along with the trusted advice that our employees can provide.”

You May Also Like

Global Piston Ring Aftermarket Projection

FactMR estimates the global piston ring aftermarket will reach a value of $2.81 billion in 2024 and increase 4.8% over the next 10 years.

The group FactMR estimates the global piston ring aftermarket will reach a value of $2.81 billion in 2024 and increase 4.8% over the next 10 years.

According to FactMR, the market share of gasoline and hybrid cars is still huge, which will keep the demand growth for piston rings in the aftermarket steady over the coming years.

Auto Care Industry Expected to Grow 5.7% in 2024

The 2025 Auto Care Factbook projects the total light-, medium- and heavy-duty automotive aftermarket to hit $617.3 billion industry in 2027. 

Auto Care Industry Expected to Grow 5.7% in 2024
SKF Automating Tennessee Vehicle Aftermarket Warehouse

The warehouse will be retrofitted with an AutoStore robotic storage and picking system.

SKF Automating Tennessee Vehicle Aftermarket Warehouse
Schaeffler Launches Facebook Follower Promotion

Schaeffler is giving away a summer swag bag to celebrate reaching 10,000 followers.

Schaeffler Recognized as a GM 2023 Top Global Supplier

This is the fourth time Schaeffler has been honored with this award.

Other Posts

What’s Next For Aftermarket Distribution?

Despite ongoing consolidation, experts say there is still a viable future for independent distributors.

Schaeffler, ATSG Partner to Support Technical Education

Schaeffler will provide ATSG members with ongoing education and technical resources.

What the Future Holds for the Aftermarket at AAPEX 2024

Attending AAPEX provides automotive professionals with the latest insights and innovations from industry leaders.

Schaeffler Releases TorCon 6L80 Torque Converter

The LuK TorCon 6L80 is “the only all-new, never remanufactured torque converter available in the aftermarket,” Schaeffler said.