Used car retailer
) is planning to launch a store in northeast Raleigh. The store is
well spread out occupying around 18 acres of land. It is located at
the intersection of Capital Boulevard and Perry Creek Road, which
is about a mile north of Interstate 540.
Currently, the company has a store on Glenwood Avenue located at
Ebenezer Church Road and another at Capital Boulevard in Raleigh.
These stores are exclusively geared for buying vehicles and for not
CarMax, in April 2012, opened its first auto superstore in
Bakersfield, California, thereby expanding its footprint in the
state. Located at 6801 Colony Street, the store covers over 41,800
square-feet of area. This new superstore with a capacity of 300
used vehicles has provided job opportunities to more than 80
The company's superstores offer customers a great deal of
satisfaction with no hassles and haggling on prices; offering a
wide range of choice; high quality vehicles; and a
customer-friendly sales process. CarMax believes that long-term
growth opportunities will stem essentially from higher sales of
vehicles, both from the new stores and stores included in the
comparable store base.
The company has plans to open around 10 superstores in fiscal
2013. In the next three fiscal years as many as 10 to 15 stores
would be launched. In accordance with the plan, the locations of
the new stores, in fiscal 2013, are in or around Lancaster in
Pennsylvania (opened in March), Bakersfield in California (opened
in April), Nashville in Tennessee, Fort Myers in Florida, Naples in
Florida, Oxnard in California, Des Moines in Iowa and two stores in
Denver at Colorado and Jackonsville in Florida.
CarMax is the one of the largest retailers of used vehicles. The
company pioneered the used car superstore concept with the
inauguration of the first store in I993. As of February 29, 2012,
the company operated around 108 used car superstores in 53
CarMax currently retains a Zacks #3 Rank, which translates into
a short-term (1 to 3 months) Hold rating. We appreciate its focus
on the used-car market, which helps it to outperform the industry.
The automotive retailer is among the strongest operators in its
peer group, which includes
Penske Automotive Group
However, the company faces increased competition. We currently
have a long-term (more than 6 months) Neutral recommendation on the
AUTONATION INC (AN): Free Stock Analysis Report
CARMAX GP (CC) (KMX): Free Stock Analysis
PENSKE AUTO GRP (PAG): Free Stock Analysis
To read this article on Zacks.com click here.