East Huntingdon auto parts stores just one example of clustering effect

Jill Dechicchis knows how convenient it is for Reliable Auto Repair to have a slew of auto parts stores to choose from as mechanics tackle the bustle of their day-to-day business.

Located on North Urania Avenue in Greensburg, Reliable is close to several stores, such as O’Reilly, AutoZone and Advance Auto Parts. Those options allow those at the family-run shop to repair vehicles quickly while giving them the opportunity to shop around for the best price.

“The longer it takes to get our parts, the longer a vehicle is held up. … And those shops only have so many racks so you need to get the parts on the car and get it off the rack so you can get the next car on the rack,” said Dechicchis, one of the owners at Reliable. “So if Advance doesn’t have it, AutoZone probably does or vice versa, and if not, O’Reilly is just down to the street, so it’s convenient that they’re all right there.”

Clustering of automotive-related businesses is not uncommon across the region, with examples in Greensburg, Hempfield, North Huntingdon, New Kensington, North Versailles and others. In East Huntingdon, two new auto parts stores are under construction, meaning motorists and mechanics soon will have four to choose from.

O’Reilly Auto Parts, a Missouri-based company, is under construction on the former Kmart property that is now also home to Aldi, the German discount grocery chain. Farther down Route 819, AutoZone, based in Tennessee, is preparing to open in the former Busy Beaver location, township supervisors confirmed.

The bustling section of Route 819 that runs past the Countryside Shopping Center and links to Route 119 already houses several parts stores — including Advance Auto Parts and NAPA Auto Parts - Fayette Parts Service — as well as two service centers, National Tire & Battery and Monroe Auto Service and Tire Centers, in addition to local mechanics.

“We have lots of auto parts stores but it’s better to have them than nothing sitting there,” said Joel Suter, chairman of the township’s board of supervisors. “It means to retain more jobs and gives people choices of where to go. I hear good stuff about all of them.

“And really, I mean, seems like there’s a lot of them but they all seem to be doing quite well so far.”

Business attraction

According to Michael Chung, director of market intelligence at the Maryland-based advocacy group Auto Care Association, several factors go into where businesses decide to open. Businesses will consider various data points such as vehicle miles traveled, product demand and driving trends, which were impacted by the pandemic.

“In any industry, if somebody plants a flag, others are likely to follow,” said Chung, pointing to fast food restaurants that tend to open in close proximity. “To some extent, this could be happening … because it could suggest that an area is underserved or that it’s an area (where) more demand has been identified or perhaps it’s forecast.”

At O’Reilly, several factors are considered when determining where to construct a new store, Bird said, including local statistics such as vehicle counts, and the makes and models of vehicles driven in the area. They also take into consideration the professional installer and mechanic base within a certain community.

O’Reilly, which began in Missouri in 1957, has continued to expand its footprint across the United States for decades. By 2016, the company had three stores in Pennsylvania: two in Erie County and one in Greenville, Mercer County. That year, they began eyeing a new store along Route 8 in Hampton.

Today, the company has 42 stores in the state, 17 of which are in Western Pennsylvania.

The East Huntingdon store will be 6,000- to 8,000-square-feet with up to 12 employees, said Eric Bird, who does investor relations for O’Reilly.

“It seems like everything is progressing on schedule,” Bird said. “We don’t give precise open dates because those tend to be fairly fluid … but it looks as though that is scheduled to open sometime in the fourth quarter of this year.”

O’Reilly now is expected to open an additional 175 to 185 new stores across the country this year, a 2021 fourth-quarter report shows, something seen by several national auto stores.

Advance Auto Parts is planning to open between 125 and 150 new stores this year, according to a first quarter report. By April, the company had almost 4,690 stores across the country.

AutoZone opened 26 new stores during the first quarter, which ended in February, a report shows. The company at that point had almost 6,100 U.S. stores.

Company officials did not respond to requests for comment regarding the East Huntingdon store.

That growth has been recorded for several years, with the number of parts stores increasing by 1,885 between 2013 and 2021, according to data from the Auto Care Association and the U.S. Bureau of Labor Statistics. Auto parts stores increased by 545 between 2020 and 2021, meaning there were 37,950 stores across the country last year.

Chung attributed the growth to people keeping their vehicles longer because of the pandemic and high inflation rates, meaning they may require more maintenance.

“Since vehicles are getting older, people are driving again, the demand for parts is there,” Chung said. “I think it makes sense that parts stores continue to open up.”

Local concerns

For stores that are already established, however, new businesses moving in can be frustrating.

Alan Hribal, manager at NAPA in East Huntingdon, said he is not sure why so many stores have opened in close proximity.

He has concerns over O’Reilly coming to the area, noting that people will likely check them out once they open. He is hopeful, however, those customers will return to NAPA.

Rick Matthews, manager at the NAPA in New Kensington, said his store has individualized itself by catering to construction companies and farmers. The store, located along Route 56, is near an Advance Auto Parts. Several other parts stores, including an O’Reilly, are located down the road near the Tarentum bridge.

“I think it’s just the competition,” Matthews said of why stores open near each other. “It’s the signs in the window and who has what on sale. If you can get them in your store and your audience is coming past to go to an auto parts store, why not? You have three you can choose from.”

Brad Raley, owner of Raley’s Auto Repair in New Kensington, said having several auto parts stores to choose from is good for business.

“It’s a pretty good advantage just having them right around the corner,” Raley said. “We get fast delivery and everything like that. It helps the business out pretty good.”

Like most mechanics, Raley orders from one of the many parts stores located near his shop and has the items delivered the same day.

Dechicchis, with Reliable in Greensburg, said her shop is big enough that they often order from all three parts stores in the area.

“It’s more convenient because if one doesn’t have it the other one does, and they’re still all right there,” she said.

Matthews noted that while people window shop for the best prices, businesses has been good at the NAPA store.

“Right around me there are four (stores) within 2 miles and we’re all pretty busy, so the customers are out there,” Matthews said. “Also, in a lower income area, there’s older cars, more mechanics, things breaking down way more often than say an area like Fox Chapel, where everyone has a car under warranty.”