Goldman Issues Grim Outlook For AutoZone Citing "Significant Exposure" To Struggling Working-Poor Consumers

[D60]

Just like a convenience store making more on soft drinks than gasoline - gotta wonder what they make with car care products like leather wipes, waxes, tire dressings …
See lots of folks grab that stuff …

You could be right! I never shop for that stuff.

For sure, chemicals, oil, wipers, bulbs and batteries are where they subsidize other things I'd say.

 

[4WD]

You could be right! I never shop for that stuff.

For sure, chemicals, oil, wipers, bulbs and batteries are where they subsidize other things I'd say.

Don’t forget blue paper shop towels !
Or get store brands for hands and Viva for glass

 

[Kira]

Nobody has mentioned the difference between those who plan ahead and are more likely to order online vs. a less well-to-do people showing up at the store under stress.

 

[SammyChevelleTypeS3]

Unfortunately most people are on the forever car note game. They tell themselves it's cheaper than fixing existing car, alternatively these are people that don't have enough emergency fund to pay for repairs that exceed a single months note.

$1200 repair bill or $600 note? Many make the terrible decision to just trade it in.

Once our boys were grown , out of college and OFF our auto insurance things changed a lot. We used to purchase a new vehicle and then give the wife's to one of the boys as long as they paid for their own insurance (well most of it). Once we were in the "empty nest" since around 2005/2006 we started to pay off cars ASAP and then enjoy several years of not paying a care note. Now I am going to do what we did last time. Getting ready to buy an SUV and will finance about 1/2 for 4 yrs while paying a note + 1/2 each month and pay it off early as possible.

 

[fdcg27]

Who knows?
GS doesn't actually have a dog in this fight, they're just observing the market and noting AZ's exposure to it.
People who can barely afford transportation will defer maintenance and will also opt for cheaper, lower margin replacement parts when they have no choice in keeping the aging heap functional.
OTOH, the rising average age of the national fleet along with the shortage of cars built 2020-2023 argues for an increased need for parts to keep the aging cars on the road.
A new car is just not in the cards for a financially strapped owner, even though average new car prices are declining, along with interest rates. Also, the lower income buyer is likely to be paying a whole lot more in finance charges then is an upper middle class tire kicker who can often qualify for the lowest rates.

 

[SC Maintenance]

For whatever reason, they've calculated they don't need your $ across the retail counter. I'm not saying it's right, but that's the way it is.

I believe this, but my question for a long time and I have asked here before - why do they continue building expensive brick and mortar on expensive retail location land. There are AAP, AZ and a brand new O'Reilly's just built on the busiest corner around. Also on the corner are a Publix, McDonalds, Walgreens, Walmart neighborhoods market,, Dunkin, and a half dozen restaurants. Its THEY corner to be at around here?

Why not a warehouse in the industrial park?

 

[ATex7239]

New cars are becoming more affordable *with seven to ten year loans and leasing.

 

[D60]

I believe this, but my question for a long time and I have asked here before - why do they continue building expensive brick and mortar on expensive retail location land. There are AAP, AZ and a brand new O'Reilly's just built on the busiest corner around. Also on the corner are a Publix, McDonalds, Walgreens, Walmart neighborhoods market,, Dunkin, and a half dozen restaurants. Its THEY corner to be at around here?

Why not a warehouse in the industrial park?

Good point. My 2nd O'Reilly opened in a strip mall adjacent to our WM. If my business/marketing classes were right, WM is basically the ultimate anchor -- EVERYTHING retail gravitates toward them and to be within eyeshot of WM is prime retail space.

 

[factorytuned2012]

those statements make absolutely no sense. weren't even affected by covid

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To shoot up nearly 200% never split to make more attractive to buy no major correction to the stock that’s Charlie sheen winning. Now GS throws some junk out there to ruffle up the stock so what exactly is up their sleeve who knows? Maybe they need funds to invest in the ev game get shareholders to quick sell then drive it back up you know like musk did with tesla and bitcoin. No one has hard feelings they still buy his cars and trade in btc

 

[gman2304]

Well yeah, most everyone has access to the internet now. Asked how much an alternator for my van was, all they had on hand was an almost $500 option. Their cheapest option was $300.

I picked up a BBB industries reman off rockauto for $195 including shipping and core charge.

I picked up a NEW AC/Delco 170 amp alternator for my 2019 Silverado from RA 2 weeks ago for $160 OTD with no core charge. The cheapest reman from AZ was about this same price.