CEO: CarMax using improvements to grow business
Used car dealership chain CarMax Inc. is looking at various improvements to better serve customers and grow its business, CEO Tom Folliard told shareholders at its annual meeting.
The head of the Richmond-based company said CarMax is looking at enhancements for its website, changing its existing store model to be more efficient, and developing a smaller store model to help it enter new or smaller markets in the U.S.
"We're a company that is never satisfied with where we are," Folliard said. "We are focused on continuous improvements; we have many initiatives that we're working on."
CarMax, which runs more than 100 stores that mainly sell used cars and trucks, has been focused on lowering expenses, and improving traffic, execution and margins to weather the weak automotive market and better position it for future growth. For example, the company has improved its sale and appraisal rates and lowered the costs for reconditioning vehicles by about $250 per vehicle.
Among the improvements to the company's website are enhanced features that allow customers to do more of the car-buying process from their computer, or mobile application. CarMax also is testing a web-based program called "EasyShop" that lets customers search for a car, put it on hold, have a car transferred to the closest store, get approval for financing and fill out other paperwork.
"If they've done all that work, they can really show up the store and take away a whole bunch of time and effort that they would have had previously," Folliard said.
Anecdotally, Folliard said a customer using the system was able to be in and out of its Raleigh, N.C., store in 42 minutes with a car.
There's no timeframe when that will be rolled out to all of its stores.
In response to a shareholder question about expanding internationally, Folliard said CarMax is focusing the U.S. market because there are still many opportunities for growth domestically. The company only has stores in about half of the U.S. markets.
"We have many, many years of growth ahead of us. ... Until we get a bigger footprint in the U.S., I don't think we're ready to look at international," Folliard said.
Last week, the company said its fiscal first-quarter net income rose 25 percent to $126.3 million as revenue at stores open at least a year rose 6 percent. It earned $380.9 million in fiscal 2011, compared with $281.7 million in the year-ago period.
Used Car Appraisals - News
Used car dealership chain CarMax Inc. is looking at various improvements to better serve customers and grow its business, CEO Tom Folliard told shareholders at its annual meeting. "We're a company that is never satisfied with
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In the first quarter of fiscal 2011, CarMax resumed its strategy to open new used-car superstores, driven by improved economic and sales environment in the USUnder the strategy, the company plans to open used car superstores at an annual rate of
Business manager Lisa Penton said she projected the district would maintain 8 percent for a fund balance, but that if appraisals fall two percent, as they had last year, or if an unexpected expense arose, the district may fall close to the
DealerTrack releases first Mobile Car Appraisal app for Android
DealerTrack has announced their first Android app dedicated for use in the Used Car Industry. This application is innovating the way that Used Car dealers appraise cars, increasing accuracy and lowering the guesswork involved. Dealers can now have additional choices as they increasingly utilize the power of mobile technology - which in turn allows them to make much faster and more accurate vehicle appraisals. DealerTrack Mobile AAX solution is powered by Laser Appraiser, LLC - which happens to be the industry's leading wireless auto-appraisal system. "As dealers increasingly strive to increase their efficiency, DealerTrack continues to innovate and deliver cutting-edge technologies," said Bridget Townsend, general manager of DealerTrack AAX. "Dealers can now run DealerTrack Mobile AAX on Android smartphones -- one of the best-selling smartphone operating systems in the U.S. -- and start realizing a range of benefits including easier and faster access to used-car valuations, wholesale auction Manheim Market Reports (MMR) as well as access to vehicle history and appraisal information right on the dealership lot or in the lanes at wholesale auctions." [ marketwatch ] All other trademarks, names or logos are owned by their respective companies. Their names are only used in connection with products offered for sale herein, and is intended only to indicate the compatibility of the products with the trademarked item(s). It in no way is intended to indicate affiliation with or endorsement by the owner of the trademark. Not responsible for typographical errors.
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