Top car retailer
) is planning to launch two auto superstores in Denver. One of the
stores will be located at 5850 S. Broadway, near South Broadway and
Littleton Boulevard in Littleton. The second one will be set up at
2600 W. 104th Avenue, Federal Heights.
The company incurred an expenditure of $6 million to purchase the
auto store located at Federal Heights, which was previously owned
General Motors Company
) Saturn automobile dealership. The average space of stores is
15,000 to 45,000 square-feet and each of them is anticipated to
employ about 50 to 150 sales employees and service technicians.
At the beginning of this month, CarMax opened the first auto
superstore in Franklin, Tennessee. Located at 4075 Mallory Lane,
the store occupies 8.42 acres of land covering 32,481-square-feet.
The new superstore with a capacity of 250 to 350 used vehicles
provides job opportunities to more than 50 employees.
CarMax plans to open between 10 and 15 superstores during each of
the three fiscal years following fiscal 2013. In accordance with
the plan, the company has already opened stores in Lancaster,
Pennsylvania in March, Bakersfield, California in April and
Franklin, Tennessee in June.
Further, it plans to open stores in Fort Myers and Naples in
Florida (in second quarter of fiscal 2013), Oxnard, California and
Des Moines, Iowa (in third quarter of fiscal 2013) and
Jackonsville, Florida (in fourth quarter of 2013) apart from the
announced two stores in
CarMax is the one of the largest retailers of used vehicles. The
company has pioneered the used car superstore concept with the
inauguration of the first store in 1993. As of June 11, 2012, the
company has operated around 111 used car superstores in 55 markets.
It delivers 250 to 500 vehicles per lot with average selling price
of $19,000. The vehicles are usually less than six years old with
maximum 60,000 miles driven.
The automotive retailer is among the strongest operators in its
peer group, which includes
Penske Automotive Group
). However, CarMax retains a Zacks #4 Rank, which translates into a
short-term (1 to 3 months) Sell rating due to the sluggish used-car
AUTONATION INC (AN): Free Stock Analysis Report
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PENSKE AUTO GRP (PAG): Free Stock Analysis
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