NEWS RELEASE

(March 5, 2003 Wyckoff, New Jersey, For Immediate Release)

(www.langmarketing.com)

AUTOMOTIVE JOBBERS SUFFER 2002 SALES DECLINE

"Jobber 2002 annual volume among surviving outlets dropped 1.52%, the first Jobber annual sales decline in the 17 years Lang Marketing has monitored Jobber volume," reported James A. Lang, President of Lang Marketing Resources, Inc., (www.langmarketing.com), a Wyckoff, New Jersey research and consulting firm specializing in the Vehicle Products Industry.

Although Jobbers recorded modest monthly increases from June through December 2002, the rebound was not enough to offset weak Jobber sales during the first five months of the year.

Prior to 2002, Jobbers recorded their smallest sales gain (since Lang Marketing has tracked Jobbers) in 1991, when annual sales climbed only 0.79%. "Annual Jobber sales are measured in current dollars among surviving stores," noted Lang. "Over the past ten years, the Jobber population nationwide declined more than 5,000 stores."

"The pace of Jobber sales growth has trended downward since 1992," said Lang. Between 1992 and 1993, Jobber volume increased at a 4.82% average annual pace in current dollars. The rate of Jobber sales growth declined to 3.01% between 1994 and 1996, dropping to an average annual 1.5% gain from 1997 to 1999.

"Jobber sales growth in the new millennium has been miniscule," pointed out Lang, "with Jobbers averaging only 0.32% current dollar annual growth among surviving stores from 2000 to 2002."

"Adjusting for the diminishing number of Jobber stores and moderate price increases at Jobber level, the 1.25% current dollar annual gain among surviving Jobber outlets between 1996 and 2002 is tantamount to more than a 1.50% average annual constant dollar decline in Jobber sales over this six-year span," noted Lang.

This reflects sluggish product growth in the car and light truck aftermarket as well as growing competition from Retail Auto Parts Stores (which are aggressively pursuing wholesale volume with independent installers),as well as direct-selling Warehouses. "Competition faced by Jobbers will intensify in the future," predicted Lang. "Unless Jobbers adjust to the changing marketplace, they will continue to lose ground."

This analysis is from the The Lang ReportŪ, a 16-page monthly report covering the vehicle products industry. For more information and free sample copies of The Lang ReportŪ, contact Lang Marketing Resources, Inc., P.O. Box 32, Wyckoff, New Jersey 07481, call (201) 652-5220, fax (201) 652-5324, or e-mail: langreport@langmarketing.com. .Visit Lang Marketing's web site at www.langmarketing.com for information on reports and services.

Click to return to News Release archive menu.