Walmart finds partner in Advance Auto Parts
Walmart is teaming with Advance Auto Parts to open an auto parts specialty store on Walmart.com.
The world’s largest retailer said Tuesday it expects the new specialty store will open in the first half of 2019 and plans to provide home delivery and same-day pickup of orders, as well as installation of some parts at Advance locations.
Walmart’s partnership with Advance could be a strategic one to counter Amazon’s move last year into aftermarket auto parts sales, which amounts to $48 billion in annual sales in the U.S.
“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,” Phillip Oaks, Walmart eCommerce’s vice president and group general manager for retail merchandising, said in a statement. “This comprehensive partnership will enhance almost every aspect of the automotive customer shopping experience – from the product offering online to fulfillment capabilities.”
Roanoke, Virginia-headquartered Advance has more than 5,000 stores where it sells 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,” Advance Auto Parts President and CEO Tom Greco said in a statement.
Walmart also lowered its earnings forecast, citing a 25-cents-per-share effect from its May 2018 acquisition of
77 percent of Indian online retailer Flipkart Group for $16 billion.
The retailer said its adjusted earnings-per-share guidance for fiscal year
2019 will now range from $4.65 to
$4.80, compared with its previous guidance of $4.90 to $5.05. Analysts polled by S&P Global Market Intelligence had estimated $4.82.
Walmart reiterated its total sales growth expectation of 2 percent for the fiscal year. For fiscal 2020, Walmart expects total sales growth to be 3 percent or greater.