Share Of Market For Independent Shops On The Rise
Service stations and garages captured the largest share of the car and light truck service market in 1995 at 36.1 percent, according to a Lang Marketing Resources report. While this percentage is slightly down from the 1994 share of 37.3 percent, the number of independent garages in this category has actually increased, said James Lang, president of the consulting and analysis firm in Wyckoff, N.J. The lower share percentages in this segment reflect fewer service stations.
"The reason for the decrease in service stations is the conversion of operations to 'gas and go' facilities with service being eliminated, as well as the closing of some service stations," said Lang. "The increase in garages is accounted for by the number of operators switching from service stations. Some are opening independent garages at the same time that service stations are declining."
The market share for garages has increased from 12.6 percent in 1990 to 15.3 percent in 1995, according to Lang. Service stations have dropped from 27.9 percent in 1990 to 20.8 percent in 1995.
Other industry segments in the Lang analysis included vehicle dealers, specialty repair shops, tire stores, auto parts stores, discount stores and mass merchandisers.
Vehicle dealers held the second largest share of aftermarket products installed at 23.1 percent, which is up from the 22.2 percent share of the 1994 light vehicle service market. Specialty repair shops were third with 18.8 percent of the market, up from 18.4 percent in 1994. Tire stores ranked fourth with 8.3 percent of the service market share, followed by auto parts stores with bays at 7.7 percent. Discount stores and mass merchandisers held 5.1 percent of the car and light truck service market, down from 5.3 percent in 1994. All other outlets accounted for 0.9 percent of the 1995 service market volume.
"These changes in the aftermarket service outlet share reflect changes in the light vehicle market," said Lang, who predicts that changes in service market outlet strength will continue over the balance of the decade. Lang says the primary factors influencing these changes will be:
- a growing aftermarket share of foreign vehicles,
- the increasing complexity of vehicles in operation,
- growth in the number of older cars and light trucks on U.S. roads, and
- manufacturer emphasis on service as a key to building brand loyalty.
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AutoInc. Magazine ®, Vol. XLIV No. 1, January 1996