Document text
Auto parts will pile up here Photo by Bob Pennell Bill Harmon of Ashland, left, and Mike Kiesling of Medford assemble the rafters of the soon-to-be Schuck's Auto Supply, next to Harry and David's Country Store in south Medford. Several chains plan new Medford stores By SUSAN JAY Do-it-yourself mechanics, hold on to your hubcaps. The competition for your business is about to rev up in Medford. The number of local auto parts and supply stores is expected to mushroom in the next few years, because Medford and Oregon are blinking on the radar screen of national and regional automotive chains eager to grab more of the local do-it-yourself car repair market. Schuck's Auto Supply plans to open its 7,000-square-foot store in the South Gateway in December or January. A third store in the north end of town is also likely, said Lon Novatt, Schuck's vice president of real estate. Grand Auto plans to build a 6,600-square-foot store in Crater Lake Plaza in north Medford. Larger chains such as Pep Boys, with more than 600 stores nationwide, and Auto Zone, with 2,500, have plans aimed at Oregon. And Medford fits their marketing strategies. Auto Zone locates close to its target customers, the low- and middle-income residents who fix their own cars. Pep Boys, which also does repairs, looks for intersections with at least 30,000 vehicle trips a day and a population of 75,000. Medford and the surrounding area easily fit those criteria. "Medford came up as a hot market for us," said Lori Stutsman, vice president of marketing at Paccar Automotive, which owns the Grand Auto Supply Store chain. There are few retail-only auto parts stores in Medford, Stutsman said. Most sell wholesale and resale. "I think everybody is looking at Medford. I think it's been a market that hasn't been tapped, but how many people get there remains to be seen," she said. "Who winds up in the market is going to depend on who gets there first." Several companies are looking at the whole state. With stores in Washington Idaho, Nevada, Alaska and California, "it just didn't seem to make sense that we wouldn't have Oregon," Stutsman said, especially with the state's healthy economy. Grand Auto has stores in Eastern Oregon, and the newest recently opened in Salem and Tillamook. Some local business owners and managers are expecting the crunch. They are concerned but not overly worried about the competition. They also say customer service, pricing and location are the keys to survival. Littrell Discount Auto & RV Parts, a local, family-owned business; Knecht's; Kress-Backen, now owned by Car Quest; and NAPA all are experiencing steady growth in sales. Southern Oregon is experiencing a huge growth spurt, said Bruce Damm, manager of Medford's Knecht's, an Oregon-only chain with 22 stores. "The community is going to be flooded with auto parts stores and some of them aren't going to make it. It's going to be very competitive," Damm said. "The next five years is going to tell the story." Location plays a big role for Knecht's, located at the corner of McAndrews and Riverside. Damm said his store will probably feel the pinch from the two new stores, but he is confident customers will come back because of his store's service and prices. Mike Littrell, co-owner of Littrell Discount Auto & RV Parts, said he's been preparing for the increased competition. It's forcing the company, started by his grandfather in 1922, to carry two lines: professional-quality parts for mechanics and cheaper parts that chains carry. He said he also plans to build more stores in Southern Oregon. "If you don't grow you're going to be eaten," he said. Littrell is confident his business can compete, because "it's still a people business." "If you take care of your customer and you do a good job, they'll be back to see you." All this competition bodes well for consumers, said Randy Nunes, who with his wife, Debbie, recently bought Napa auto parts stores in Medford and Central Point. In Klamath Falls, where the couple owns a new 14,000-square-foot Napa superstore, Schuck's is building an 8,000-square-foot store just down the street. Nunes isn't too worried about the competition. For one, his stores are strong on the wholesale end, selling parts to mechanics and auto shops. Schuck's does some commercial business, but the majority is retail. He said he wants to build a 14,000-square-foot Napa superstore here by 2002. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1998, Medford, Oregon USA