NAPA Parent Genuine Parts Co. Reports Record Sales for 2018

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Financials

NAPA Parent Genuine Parts Co. Reports Record Sales for 2018

Full-year sales for the Automotive Group – GPC’s largest division – increased to $10.5 billion, up from $8.6 billion in 2017.

Josh Cable
By Josh Cable
Josh Cable is the editor of Counterman and ShopOwner. He joined Babcox Media in January 2017, and has been working in the field of journalism since 1999.
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Genuine Parts Co. (GPC) reported record full-year sales of $18.7 billion for 2018, up 15 percent from 2017.

Full-year sales for the Automotive Group – GPC’s largest division – increased to $10.5 billion, up from $8.6 billion in 2017.

GPC’s overall fourth-quarter sales were $4.6 billion, up 9 percent from fourth-quarter 2017. The Automotive Group posted fourth-quarter sales of $2.6 billion, up 11.4 percent from fourth-quarter 2017.

“We were pleased to build on our prior progress in 2018 and report another solid quarter of improved results,” GPC President and CEO Paul Donahue said during the company’s Feb. 19 conference call.

In the United States, Automotive Group sales were up 4 percent in the fourth quarter, with most of that growth coming from existing stores. Comparable store sales increased 3.3 percent.

“This was in line with our 3.2 percent comp-sales increase in the third quarter and reflects a solid execution of our sales initiatives, sound fundamentals for the aftermarket and generally favorable weather conditions, which drove improved demand for much of the year,” Donahue said.

GPC’s commercial and retail automotive business drove the fourth-quarter sales increase, according to Donahue, but growth in commercial sales outpaced retail sales for the second consecutive quarter. Commercial sales represent 75 percent to 80 percent of GPC’s total U.S. automotive sales, Donahue estimated.

Among the highlights for the Automotive Group, the NAPA AutoCare program grew to more than 18,000 members in 2018, according to Donahue. The program provides training, marketing support, technology and other resources to repair shops in the NAPA AutoCare network.

“We are pleased with the improved numbers our team is driving through our NAPA AutoCare segment, and we remain confident this improving trend will carry over into 2019,” Donahue said on GPC’s Feb. 19 conference call. “We are also pleased to report continued progress with our major account partners, as sales to this group improved in the fourth quarter. We expect to see this positive trend continue in the quarters ahead due to our ongoing and extensive efforts to meet and exceed both the product and service demands of these national and regional customers.”

On the retail side, Donahue attributed the growth in comparable store sales to a number of factors, including the NAPA Rewards program – which boasts 9.4 million members – expanded store hours and efforts to upgrade stores through the NAPA “Retail Impact” project. NAPA rolled out the Retail Impact initiative at company-owned stores in 2018, and sales growth at those stores has outpaced stores that aren’t part of the initiative.

“We also began implementing this initiative with our independently owned stores in 2018 and will continue this rollout over a multi-year process to drive additional retail sales across the NAPA network,” Donahue added.

In December, GPC announced the promotion of Kevin Herron to president of the U.S. Automotive Parts Group. Herron, a 29-year NAPA veteran, has “significant leadership experience and a deep knowledge of the automotive aftermarket,” Donahue said.

In February, GPC announced that former Sysco executive Scott Sonnemaker joined the company as group president, North American automotive.

“In this key role, created to streamline the automotive structure and further our global focus, Scott has responsibility for all aspects of the automotive business in the U.S., Canada and Mexico,” Donahue said on the conference call. “ … We are excited to have Scott on board and lead our efforts to maximize the future growth of this important segment of the company.”

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Customer Service: How It’s Done

Customer service should be your number one priority, and it all starts with the greeting.

Eric Garbe
By Eric Garbe
Eric Garbe is a graduate of Columbus State Community College with a degree in Automotive Maintenance Technology. He has extensive independent and dealership field experience as a technician and shop owner and is an ASE Certified Master Technician and former Adjunct Automotive Professor. He has been professionally writing automotive technical articles and documents for many years and in his free time enjoys restoring old cars and creating custom interiors and upholstery.
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This is always an important topic to discuss, because I consider excellent customer service one of the most important tools you can have to earn trust, respect and repeat business from the customers that come through your door. Whether that customer is do-it-yourselfer from across town or the professional repair shop across the street, your business depends on a solid relationship.It’s a subject that I am passionate about, and it’s one that many people are losing touch with. Whether you are communicating to someone in person, on the phone or using some type of social media, good customer service and bad can both exist. You can’t afford the latter, so this is the first in a series of topics which can and should be shared from the front of the shop to the back. No matter which role you hold, you represent the shop and yourself. Customer service should be your number one priority.First on the list is the greeting. From the second a customer walks in the door, they need to know you appreciate them coming in and how important they are to your business. First impressions are everything and here’s the correct way to do it each and every time: look them directly in the eye, smile and say hello!Of course, you can say “Good morning” or “Welcome to Joe’s Autocare,” but it should be a formal greeting and the most important thing is that you have smiled, looked them in the eye and recognized that they have walked through the door.You should always retain a formal greeting until you are on a first-name basis with a customer. Only once you have established that level of relationship is it OK to use the less formal greeting of “Hi,” followed by the person’s name.This greeting does more than just indicate respect and appreciation for someone walking through the door. Most likely there are customers both new and old who are in earshot of your conversation. For newer customers, this continues to build rapport and reinforce their positive view of your shop; they see that you demonstrate respect and treat everyone in the same manner. For repeat customers, even ones that have been coming for years, the greeting is important because the way you treat them is the reason they continue to come.And when a long-time customer comes in and you greet them with “Hi [First Name],” this indicates your appreciation for them and that you’re glad to see them as a person, more than just a customer. New customers that witness this will see that your repeat customers are comfortable enough to be on a first-name basis, another indication of the trust they have in you.

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