Auto Service News

The changing landscape of auto parts stores

The landscape of auto parts stores in the United States experienced notable shifts over the last few years, according to a recent report from Lang Marketing.

From 2017-2023, the mix of jobber stores and retail auto parts stores saw substantial changes, reflecting evolving market dynamics and consumer preferences.

In the early part of the decade, there were more than 17,100 automotive jobber stores across America. However, this number fell to approximately 16,100 by 2023, marking a continuing decline in jobber outlets. The final figures for the jobber population as of mid-year 2023 are expected to be released in June.

Conversely, retail auto parts stores have been on an upward trajectory. Starting with about 19,100 outlets in mid-2013, the number grew steadily over the decade, reaching over 20,000 by mid-2023, setting a new record for the sector.

Despite this growth in retail outlets, the total number of auto parts stores — including both jobbers and retail stores — decreased by about 450 from 2017 to 2023. This decline occurred even though there was a $17 billion surge in aftermarket product volume during the same period.

“Changes in the numbers of jobbers and retail auto parts stores have substantial consequences for how auto parts are supplied to DIYers and Installers, the brands available to them, and the speed and convenience of auto repair in the U.S.,” the report outlined.

Lang Marketing’s analysis pointed to several factors influencing these trends.

Automotive jobbers have struggled to maintain their share of the expanding do-it-yourself (DIY) market, losing nearly one-fifth of their market share in six years. Additionally, jobbers have faced increasing competition from retail auto parts stores in the commercial market, which has traditionally been a stronghold for jobbers.

The emergence of two-step distribution by traditional warehouses — designed to bypass jobbers to sell directly to commercial accounts and end-users — has further impacted jobber business.

On the other hand, retail auto parts stores have successfully adapted to changes in the marketplace. These stores have maintained a strong presence in the DIY market, despite challenges from e-commerce platforms and other online sellers. Moreover, the commercial business has become the fastest-growing segment for retail auto parts stores, which have increasingly won over customers from jobbers by expanding their product offerings and increasing their store count to better serve the commercial market.

Looking ahead, Lang Marketing anticipates these trends will continue. The decline of jobber stores is expected to persist, while retail auto parts stores are projected to increase both in number and market share in the commercial sector.

As the market continues to evolve, manufacturers and marketers may need to reassess their strategies to effectively reach both DIY and do-it-for-me (DIFM) customers in this changing distribution landscape.



Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button