Moreover, this move highlights the decision of the leading auto retailers to sell dealerships that do not align with their future growth strategy.ĬarMax, peers of which include Advance Auto Parts AAP, O’Reilly Automotive ORLY and AutoZone AZO, currently carries a Zacks Rank of 3. With the divestiture of the last Toyota store, CarMax has now completely disposed off the new-car business. As of December 2020, CarMax had 220 used-vehicle locations in the United States aside from the two Toyota franchises, which it sold in 2021. In 2016, CarMax had four new-car franchises but sold two of them that year. By 2006, CarMax had only six franchised stores remaining. Though CarMax entered the business of new vehicles in the mid-90s, by 2003, the company had started to sell off those locations. Ship-to-home next day, curb-side pick-up option, buy online, pick-up in stores and commercial customer ordering are picking up pace, driving traffic to the company’s online site. The omni-channel platform enables the company to serve its core customers on their terms. Omni-channel remains a critical component of the company’s long-term strategy and is likely to boost revenues in the future. The new technology allows customers to seamlessly shop in the physical CarMax stores or online for an easy and enhanced buying experience. The seamless integration of a world-class in-store experience and an online experience gives the company the largest functional market within the used-car industry. The company’s omni-channel offerings provide a personalized multichannel experience, thereby improving the shopping experience of the buyers. The company expects to grow its market share of the national used-auto market of 0-10 years old cars to more than 5% by calendar-year 2025.Īt the end of 2020, the auto retailer rolled out its new omni-channel retail platform. Thus, amid the changing scenario, CarMax shifted gears to concentrate entirely on its used-vehicle business and implement a digital platform for online car sales. The pandemic also boosted the used-car sales, and made it imperative for automakers to facilitate their remote and online sales to remain competitive. The coronavirus pandemic, which rattled the economy in 2020, has only further affected the new-car sales. Over time, CarMax has witnessed a decline in the new-vehicle sales.

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