Episode 55: Advance Auto Parts President & CEO Shane O’Kelly Defines ‘Blended Box’ Strategy

In this episode of Drivetime, Shane O’Kelly, president and CEO of Advance Auto Parts, discusses several key strategic moves for the company, most notably the sale of Worldpac and the continuing importance of the Carquest brand. The decision to divest Worldpac allows Advance to focus more directly on its “blended box” strategy, which targets both DIY and professional customers, O’Kelly explained. O’Kelly emphasized the importance of relationships within the aftermarket industry, noting that the strong partnerships between distributors and suppliers are critical for success. He also highlighted the importance of listening to both customers and frontline employees. “People buy from people. And what I love about that is that it’s not a transactional relationship because a transactional relationship lasts for a minute,” he said.Looking ahead, Advance Auto Parts is focused on expanding its footprint, with plans to open up to 100 new stores per year and consolidate its supply chain through a reduction in distribution centers. This will be supported by new “market hubs” designed to offer a greater variety of parts and faster delivery times to customers, meeting rising demands for speed and convenience.To hear O’Kelly’s formula for success in his own words, make sure to watch the video above.

Episode Overview:

• O’Kelly discusses Advance’s sale of Worldpac (0:49)
• The Carquest brand and how it fits into the Advance Auto Parts family (2:36)
• O’Kelly discusses his career path to the aftermarket and educational background that started at West Point (4:20)
• Discussion of B2B and B2C and how they play together within Advance (8:52)
• O’Kelly discusses the slogan, “Leaders eat last” (13:19)
• The story of O’Kelly receiving his diploma from Colin Powell, a 4-star general at the time (14:13)
• Advance names Bruce Starnes executive vice president, chief merchant, and what that means for the company moving forward (15:02)
• The symbiotic relationship between distribution and manufacturers (18:15)
• Vision for Advance for the next three years (20:28)
• Lightning Round (23:46)