AutoZone Is Aggressively Expanding Its Retail Footprint
AutoZone opened 141 net new locations globally last quarter, including 90 in the U.S., as it accelerated its pace of expansion and built out its large-format footprint.
In total, AutoZone has opened 304 net new stores globally in the past fiscal year, executives said on its most recent earnings call.
This wave of expansion builds on a strategy by the auto parts supplier to increase its market share. In total, AutoZone opened 43% more net new stores than during the previous fiscal year.
Fifteen of those 304 stores are new “mega-hub” locations. These are larger models that devote 85% of their floor space to inventory, compared to 50% in conventional AutoZone stores. Mega-hubs can house some 100,000 items and can supply satellite stores with multiple overnight shipments.
AutoZone has 133 mega-hub stores. Chief Financial Officer Jamere Jackson said in 2024 that the company had a goal to open roughly 200 new mega-hubs “over a very short period of time,” Supply Chain Dive reported.
Sales at mega-hub locations outpace their smaller counterparts.
“While … our average commercial weekly sales per program grew 9%, the 133 mega-hubs are growing much faster than the balance of the commercial business in Q4,” Jackson said.
Internationally, AutoZone opened new stores in 45 locations in Mexico and six in Brazil last quarter. It now has 1,030 international stores.
President Donald Trump imposed a 25% tariff on imported cars and auto parts, and that has caused the cost of parts to rise in AutoZone stores. However, sales analysts say the company is less adversely affected by the tariffs than other business sectors of the auto industry. This is because car repairs can't be indefinitely delayed, unlike some other major purchases, The Wall Street Journal reported.
The U.S. market for DIY auto parts has grown about 65% from 2017 to 2025, according to the Auto Care Association. DIY auto repair grew in popularity during the pandemic and has remained popular postpandemic, according to the association.