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Dive Brief:
AutoZone’s efforts to strengthen its supply chain strategy helped drive an 8.4% year-over-year increase in sales in the past quarter — the largest reported increase since Q2 of fiscal year 2023, President and CEO Philip Daniele said during a Q3 earnings call last week.
This year the auto parts retailer is investing nearly $1.6 billion in capital expenditures, most of which is allocated to hubs and “mega hubs,” Daniele said. AutoZone expects to invest a similar amount of money next year.
AutoZone’s mega hubs aim to place inventory closer to customers, Daniele said. This quarter the retailer opened 14 mega hubs, which serve both as stores and distribution points, and it plans to open an additional 15 locations in Q4.
