AutoZone is about to release earnings. Ponder the Bear Case Scenario
Competing specialty retailers have dramatically increased stores and square footage and have eroded AutoZone’s competitive advantage.
AutoZone and competitors are in a storefront expansion mode. This will probably create an over supply and force later contractions and rationalizations.
AutoZone is being paid the ultimate compliment they are being copy catted big time. Customer does not care he will go where the best deal is.
AutoZone needs to come up with something new and different. Their advantages are eroding.
George Gutowski writes from a caveat emptor perspective.