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Wednesday, October 24, 2007
The Auto Retail Informer: October 24, 2007
Auto Retail Informer Intro: October 24, 2007
"Separately, John Van Hale our Chief Administrative Officer has negotiated a 5-year strategic partnership agreement with Auction Direct USA, which currently operates used vehicle super stores in Rochester New York and Atlanta Georgia. And is opening additional stores in Jacksonville Florida and Raleigh North Carolina over the next two months as part of its national expansion program. Under the terms of this agreement, we provide consulting services to auction direct as it expands its operation and opens additional locations and service centers as well as supplying parts and equipment to those stores." Source: Robert Gross, Chairman and CEO, Monro Muffler Brake. 2Q08 Earnings Call. October 23, 20
... To view the entire article: Monro/O'Reilly earnings (10/24/07)
Frankly, I was disappointed with Monro's quarterly results. I am not worried about sluggish sales and a difficult environment. Whether we want to call it gas prices, mid/low income consumer budgets getting squeezed, to parts lasting longer (i.e. exhaust down 17% in the quarter.) The bottom line is that there is something structurally that has changed in the environment. But CEO Robert Gross even pointed out that in difficult times it creates a better acquisition environment. And this is the opportunity I see for Monro. I think the chain is ahead of the rest of the industry in showing real economies of scale can exist. The only question now, is how quickly can they implement their systems and processes into newly acquired stores?
... To view the entire article: |
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