MINYARD MAKES ROOM FOR AUTO ACCESSORIES

JOEL ELSON

COPPELL, Texas -- Minyard Food Stores here has adjusted the mix of its auto supplies in an effort to raise margins in the department.

The chain is providing more space for its higher-profit automotive accessories and reducing its supply of lower-profit motor oils.

"Small accessories now move better than lower-profit motor oils and windshield-washer fluids, which are highly competitive," said Dean Owens, director of general merchandise at the 81-store chain.

Minyard wants to capitalize on impulse sales of accessories, which have margins of 35% to 50%. The margins on engine oils are about 25% lower, said Owens. Among the impulse accessories helping boost profits are air fresheners, priced at 99 cents for one and $4 for two- or three-count multipacks; and key rings and chains, retailing at 69 cents to $2.49. Minyard, in fact, has scaled back its motor oil assortment from 12 linear feet to just one to two 12-quart cases.

The stores merchandise two stockkeeping units of windshield-washer fluid, two SKUs of coolant and about 12 SKUs of various motor oils and transmission fluids. "Motor oil cannot support an auto supply section despite it still being a high volume item. People no longer come in for five to six quarts to change the oil in their autos. Many now use quick lube retailers for servicing their engines, which includes a new oil filter and free topping off under the hood fluids," said Owens. Minyard uses a combination of pegboard and gondola shelving to merchandise auto sections in its 15,000-square-foot to 72,000-square-foot stores. Chemicals, waxes, engine additives, funnels and squeegees are displayed on shelf tiers, with carded and small packaged items stocked on peg hooks above.

Minyard has enlarged its automotive sections in 10 to 12 stores to up to 28-foot sets during the past year. Rolling out the larger sets came "as larger stores were opened to enhance the one-stop shopping concept," Owens said. About 50 Minyard stores now offer the larger departments carrying 1,200 to 1,500 SKUs, with other stores in the chain ranging between 12- to 24-foot auto supply departments.