The new study shows that mass merchandisers and discount stores deliver exceptional automotive aftermarket products to consumers. Moreover, these outlets also deliver business dollars to the aftermarket by pushing customers to seek other avenues - including independent service repair facilities or dealerships - when looking for installation, repair or maintenance work.
"Quality drives two levels of business among mass merchandisers and discount stores," said Krista McNamara, managing editor, Aftermarket Business World. "First, offering quality products was reported as the most important reason to do business with a supplier — most commonly warehouse distributors. Secondly, quality is reported as the number one most important consideration influencing product purchases."
McNamara reports that although discount stores and mass merchandisers deliver quality products, a vast majority reported they do not offer an on-site service bay, driving consumers to seek alternate methods when they need work done on the vehicle using the products purchased.Most respondents reported that sales have held steady over the past 12 months, and are expected to do the same going into 2011. "Sales are driven with the help of bundling products with related items for sale, and by running advertised specials, respondents report," explained.Results from the study show that direct email and websites are the most successful advertising methods in driving sales and gross margins.
Gross margins are also holding steady, with almost half of the survey respondents reporting they have increased over the past 12 months, and the other half indicating they have held steady. Most respondents anticipate these margins to continue increasing over the next 12 months, according to the survey.
The Aftermarket Business World Discount Stores/Mass Merchandiser Product Study was fielded over the phone to sales and management employees in these businesses. McNamara points out that because of the limited respondent pool, survey results should be viewed as general market trend indicators, rather than statistical certainties.
Follow this link to where the complete study is posted at www.SearchAutoParts.com.
