Feature | Annual Report 2014 | Investor Relations

Greater Availability, Enjoyment, and Convenience for Customers Eyes firmly fixed on the changing roles of cars in society,and working to firmly root ourselves in local communities

As the roles cars play in society change, AUTOBACS continues to create stores that are always close at hand, and offer one-stop solutions to all car-related needs — stores that provide customers with convenience, reliability, and enjoyment.

In addition, as an employer in local communities, we devote significant resources to personnel development and, through environmental consciousness and activities that contribute to local communities, strive to be a company that is supported and trusted as infrastructure for a society in which cars play important roles.

Helping Customers Get Greater Enjoyment from their Cars

AUTOBACS wants to be more than an automotive goods retailer; our goals is to be the “go-to” place for everything related to cars. To be the one-stop place where customers can get answers for all of their car-related concerns and desires, we are moving forward with a wide range of initiatives that will make AUTOBACS the place to go for everything related to cars.

Sales Floors that Are Fun and Easy to Navigate

We spent four years to renovate the sales spaces at all of our stores to make the most of a broad array of merchandise offerings leaving no customer need unmet, and give customers a more comfortable, enjoyable shopping experience. We made sales floors brighter, organized merchandise displays by merchandise category, standardized in-store signage, and took other steps to provide customers with greater convenience, make purchasing easier, and contribute to greater sales and inventory efficiency at the store level.

Sales floors where goods are easy to find

Space for special sales

Customer Service through Tablet PCs

Not knowing whether a certain part will fit a particular car properly is one of the difficulties associated with buying automotive goods. AUTOBACS stores are now using tablet PCs to serve customers better with swift, accurate responses to their questions and desires, and ultimately increase customer satisfaction.

General Maintenance Counter

Using tablet PCs to serve customers

Expansion of Merchandise and Service Lines

Expanded Line of Maintenance Services

We offer customers a wide-ranging service selection including everything from oil and tire changes, to safety inspections, body repair and painting, statutory safety inspections and maintenance. Our General Maintenance Counters give customers a place where they can easily get advice on their concerns, and we use direct mailings and other approaches to encourage customers to bring their cars in for service at the recommended times.

Statutory safety inspection service desk

Performing a statutory safety inspection at a store certified to perform inspections

Increased the Number of Stores Dealing in Cars

Responding to the needs of customers who consider buying another car as the time for statutory inspection for their current car approaches, AUTOBACS is moving ahead with efforts to offer car appraisal and purchase, and new and used car sales at all of its stores in Japan. As of March 31, 2014, these services were being offered at 359 stores, 60% of AUTOBACS locations. Plans are to be offering them at almost all of our stores by March 31, 2015.

Used car display

Rich inventory for customers to choose from in stores and on the Internet

Comments Sent by a Customer to the Customer Service Center

The other day, I had a 12-month inspection done at an AUTOBACS store (in Kanagawa Prefecture). I thought I’d been hearing something unusual from the engine, so I asked them to check it out, and they did. I made it to the store a little before closing, but they continued to work on my car even after closing time, found the source of the problem, and fixed it.

I feel much better about driving my car now, and I’m very thankful for the service I received. I had been worried about the condition of my car, but now I have no concerns about driving it. My car is very important to me, so I’m very happy that it was fixed. I sent this message because I wanted to say once again how grateful I am. Thank you very much.

Drawing on its market-leading position in Japan, the wealth of know-how it has developed over the years, and relationships with its suppliers, AUTOBACS offers an incredibly wide range of private brand and exclusive car goods from tires and wheels, to oil, batteries, and accessories providing value in terms of price and performance. We currently offer approximately 1,000 of these items (SKU) that together comprise over 12% of total net sales. Going forward, we will revamp our PB merchandise strategy to offer customers goods with even more value than in the past.

Tires

Microfiber cleaning cloths

Food tray

Adding to our own AUTOBACS.COM online shop, we are expanding our contacts with customers who purchase car goods via Internet shopping malls and other online channels. In addition, by inviting customers to have their online purchases installed at one of our stores, we are providing customers with greater convenience while also promoting synergies by increasing customer traffic at our stores.

AUTOBACS.COM (Established in  January 2001)
AUTOBACS  Rakuten Ichiba  store (Opened in  August 2012)
Amazon  AUTOBACS store (Opened in June  2013)
AUTOBACS  Yahoo! store (Opened in January  2014)

The Company undertakes quality control guided by its Product Quality Control Regulations. Our quality control system covers not only private brand items, but also national brand items. Working closely with manufacturers and suppliers, we adopt a multifaceted approach to quality control, considering such aspects as the legality and safety of the products themselves and how they are used, as well as protection of consumers based on product liability laws.

Assuring the Quality of PB Merchandise

Much of our private brand merchandise is manufactured at overseas plants. We ensure stable quality by monitoring production sites and offering advice. We inspect private brand items using the global Acceptable Quality Level (AQL) standard immediately before shipment from factories or on arrival at logistics centers.

Customer Service Assessments

To improve the quality of our customer service, we have an external research company perform secret shopper assessments twice a year at every one of our stores. Secret shoppers assess various aspects of our service quality, such as how we greet and interact with customers, and in-store merchandise information. Results are fed back to individual stores in an effort to continuously improve service.

Ensuring the Safety of NB Merchandise

On rare occasions, we will find a defect with a national brand item. In such instances, in order to prevent recurrence, we implement every measure, extending to even our quality assurance systems and manufacturing processes, which includes the mandatory submission of an action plan by the manufacturer. We have also introduced the Defective Product Hotline on the Chain’s online bulletin board to ensure that the relevant information is shared among the AUTOBACS Chain stores on a timely basis.

Personal Information Protection

The AUTOBACS Group, in order to properly manage the personal information of customers, implements organizational, physical, technological, and human measures to protect information. The Internal Control Department takes the lead in contacting other departments to regularly evaluate and improve personal information protection measures. It also works with department heads, who are responsible for information management in their areas, to ensure that information protection measures are being properly implemented.