Walmart to Enter the Auto Aftermarket
2019-01-08 10:45 Tuesday
The U.S. automotive aftermarket is expected to achieve $433 billion in sales by 2021. Thanks to growing consumer confidence, the U.S. automotive aftermarket in 2018 has reached $392 billion and created 50,000 new jobs.
Excited by the growing revenue, traditional retailers have entered the aftermarket in recent years.
The world's largest retailer Walmart will partner with Advance Auto Parts to open an auto parts e-store on Walmart.com. The e-store is expected to open in the first half of 2019 and will provide home delivery and same-day pickup, as well as installation of some parts at Advance locations.
Phillip Oaks, Walmart eCommerce's Vice President and General Manager for Retail Merchandising, said: "This year, we've been incredibly focused on building our offering on Walmart.com to ensure we have the specialty assortment that our customers are looking for. This comprehensive partnership will enhance almost every aspect of the automotive customer shopping experience – from the product offering online to fulfillment capabilities."
Advance has more than 5,000 stores that sell auto parts, accessories and maintenance products. "Partnering with Walmart enables us to share our extensive product offering and trusted advice with an increased number of do-it-yourself customers and supports our long-term strategic objectives," President and CEO Tom Greco said.
Walmart said that the deal will complement its current selection of auto parts and accessories, which include tires, lubricants, and battery services, that are sold online and in its 2,500 Walmart Auto Care Centers nationwide.
Walmart and Advance Auto Parts will work together to explore new models options, and will roll out new products over the course of 2019. Advance Auto Parts items purchased on Walmart.com will eventually be available for same-day pickup at Walmart or Advance Auto Parts locations.
The strategic partnership between Walmart and Advance is regarded as a reaction to Amazon's entry into the auto aftermarket last year, a development that has had enormous implications for the growing U.S. market.