Three of the largest U.S. sellers of replacement parts are seeing sales surge, sending their stock prices on a roll. AutoZone, Advance Auto Parts and O’Reilly Automotive have all gained at least about 20 percent this year.
The retailers are benefiting from the fact that Americans’ cars are aging, as well as a new wave of technologically advanced cars that’s boosting sales to professional mechanics. Auto-parts sellers also have so far proven immune to the e- commerce threat from Amazon that has plagued other merchants.
“The auto-repair industry is well-positioned because it’s not being disrupted by places like Amazon. The lingering effects of the most recent recession, has caused the average age of vehicles to climb to 11.4 years, the highest ever. While simultaneously, lower gas prices and higher employment have drivers putting more miles on their cars, creating a booming market for oil and replacement tires.