Genuine Parts Has Competitive Advantages in Its Automotive and Industrial Units

As a top distributor of automotive and industrial parts (roughly two thirds and one third of net sales, respectively), Genuine Parts benefits from industry dynamics favoring its scale-enabled service levels. We believe it will use its cost advantage to boost sales through its ability to offer a wide variety of parts on short order, building inventory and cost leverage as sales rise while fortifying brand value in a way that subscale peers cannot economically replicate.