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NAPA Auto Parts To Sell 2 Hudson Stores

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By KLINT LOWRY

The Suncoast News

Published: May 19, 2008

HUDSON - With "For Sale" signs sprouting up like dandelions on lawns in Pasco County, one national company is hoping it will find the grass is a little greener on the commercial side of the real estate market.

NAPA Auto Parts, the nation's largest automotive aftermarket supplier, has more than 6,000 locations in the United States, Canada and Mexico, about 1,000 of which are owned by the company.

The company is engaged in a project to sell 300 of its stores to local entrepreneurs, including Hudson-area NAPA stores at 10114 S.R. 52 and 14717 U.S. 19.

"We picked about 15 markets," said Josh D'Agostino, director of new business development for Genuine Parts Co., the parent company of NAPA Auto Parts.

Through the years, D'Agostino said, the company has found private ownership works better at small town locations or those on the outer edges of large metropolitan areas.

The owners have a better sense of their respective communities and are better equipped at being actively involved in those communities than the corporate office in Atlanta, he said.

"They always do better when they're in individual hands," D'Agostino said of NAPA stores in smaller markets.

D'Agostino offered a reason why investors should be interested. Foremost is the NAPA name. Store owners enter into a trademark agreement with the company.

Although they don't have to pay a franchise fee, they do agree to "treat the NAPA brand correctly," as D'Agostino put it.

That name is a valuable asset, he said, especially given the state of the economy. The automotive parts industry has always done well during downturns as people opt to maintain their vehicles as long as possible instead of buying new ones.

To be considered by NAPA, would-be owners must have liquid capital of at least $75,000 to $100,000 to qualify for lending options through preferred financing partners.

The overall cost of buying an existing store, D'Agostino said, is considerably less than starting a new one.

Also on the plus side, he said, is that the new owner inherits the store's customer base and a trained staff.

The company is looking for active owners who will be involved in day-to-day operations. Potential buyers are given the opportunity to meet the personnel at the store.

It is important to try to retain the staff, particularly the existing store manager and outside salespeople, D'Agostino said. Some turnover is to be expected, he said, but on average when stores change hands, they retain about 75 percent of their staff.

Potential investors can find out more at www.napaonline .com.

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