| We are the largest specialty retailer of automotive parts and accessories in the Western United States and one of the largest such retailers in the United States, based on store count. We have the number one market position in 22 of the 32 major markets in which we operate, based on store count. As of February 3, 2008, we operated 1,349 stores in 22 states under four brand names:
Checker Auto Parts
Founded in 1969, with 487 stores in the Southwestern, Rocky Mountain and Northern Plains states and Hawaii.
Schuck's Auto Supply
Founded in 1917, with 222 stores in the Pacific Northwest and Alaska.
Kragen Auto Parts
Founded in 1947, with 504 stores primarily in California.
Murray's Discount Auto Stores
Founded in 1972, with 136 stores in the Midwest.
We offer a broad selection of national brand name, private-label and generic automotive products for domestic and imported cars and light trucks. Our products include new and remanufactured automotive replacement parts, maintenance items and accessories. Our stores average approximately 7,200 square feet in size and typically offer a store specific mix averaging approximately 17,500 stock-keeping units, or SKUs. We also operate a highly efficient network of strategically located depots to provide approximately 75% of our stores an additional 65,000 SKUs on a same-day delivery basis. Through our extensive on-line vendor network, we make available up to an additional 250,000 SKUs on a same-day delivery basis to approximately 75% of our stores and up to 1,000,000 additional SKUs on a next-day delivery basis to substantially all of our stores.
We serve both the do-it-yourself ("DIY") and the commercial installer, or do-it-for-me ("DIFM"), markets. The DIY market, which is comprised of consumers who typically repair and maintain vehicles themselves, is the foundation of our business. Sales to the DIY market represented approximately 83% of our net sales for fiscal 2004. The DIFM market is comprised of auto repair professionals, fleet owners, governments and municipalities and is forecast to account for over 72% of the annual sales in the U.S. automotive aftermarket industry in 2005, according to statistics published by the Automotive Aftermarket Industry Association. Sales to the DIFM market represented approximately 17% of our net sales for fiscal 2004. In 1994, we began targeting the DIFM market to leverage our existing store base, fixed costs, inventory and in-store personnel. We believe we are well positioned to effectively and profitably further penetrate the highly fragmented DIFM market because of our sales force dedicated to DIFM customers, experienced in-store sales associates, level of customer service, conveniently located stores, efficient depot delivery network, attractive pricing, and ability to provide timely availability of a broad selection of national brand name products.
In March 1998 the Company successfully completed an initial public stock offering, and in December 1998, a secondary offering was successfully completed by certain existing shareholders. The CSK Auto Corporation's common stock trades on the New York Stock Exchange under the symbol "CAO."
Headquartered in Phoenix, AZ, CSK Auto has experienced growth through a combination of acquisitions and a program of store construction and expansion. In 1997 we acquired 81 Trak Auto stores in southern California, converting them to the Kragen name and product mix. This led to an extremely productive year in 1998, as annual sales broke the $1 billion barrier for the first time, and the Company opened, expanded, or relocated a total of 130 more stores.
In June of 1999, we added 86 more Checker stores in the Northern Plains states by acquiring the Big Wheel/Rossi Auto Parts, chain, and in October of that same year we completed our acquisition of 194 Al's and Grand Auto Supply stores (formerly known as PACCAR Automotive, Inc.) in Washington, California, Idaho, Oregon, Nevada, and Alaska, solidifying our position as the leading retailer of automotive aftermarket parts and accessories in the Western U.S. To strengthen our position in the Northern Plains states, in April of 2000, we purchased All-Car Distributors, operators of 21 stores in Wisconsin and 1 in Michigan. These stores now operate under the Checker banner.
On December 19, 2005, we announced that we completed the purchase of Murray's Inc. and its subsidiary, Murray's Discount Auto Stores. The 110 Murray's automotive parts and accessories retail stores in Michigan, Illinois, Ohio and Indiana retain the Murray's name and operating model.
At CSK Auto, we are focused on developing and operating stores that appeal to customers. Our stores are easy to shop, and we offer a broad selection of brand name products on a timely basis, in convenient locations, and we work hard to create a customer service driven culture. We recognize that offering value to our customers ultimately translates to value for our shareholders. We appreciate your continued support of CSK Auto.
Larry Mondry
President and Chief Executive Officer
CSK Auto, Inc.
Corporate Headquarters
645 East Missouri Avenue
Suite 400
Phoenix, Arizona 85012
CSK Auto Corporation is the parent company of CSK Auto, Inc., a specialty retailer in the automotive aftermarket. As of February 3, 2008 the Company operated 1,349 stores in 22 states under the brand names Checker Auto Parts, Schuck's Auto Supply, Kragen Auto Parts, and Murray's Discount Auto Stores.
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