On AutoZone’s Fiscal 2024 year-end earnings call earlier this week, Company executives affirmed that “Mega Hub” stores will be a key driver of its current and future growth.
Unlike the standard AutoZone AZO 0.00%↑ store that is ~6,500 square feet and carries ~21,000 product SKUs, Mega Hubs can be as large as 50,000 square feet and carry over 100,000 SKUs.
Mega Hubs also provide distribution and fulfillment to the standard AutoZone “satellite” stores in the surrounding trade area.
These Mega Hubs also are outperforming the rest of AutoZone’s commercial do-it-for-me (DIFM) business.
For instance, Mega Hubs generated results well in excess of the 9% average weekly sales per program in AutoZone’s commercial DIFM business.
AutoZone CFO Jamere Jackson also noted on the Company’s earnings call that Mega Hubs “drive a tremendous sales lift inside the store box as well as serve as an expanded assortment source for other stores.”
Jackson also commented that “the expansion of coverage and parts continues to deliver a meaningful sales lift” to both AutoZone’s DIFM and do-it-yourself (DIY) business segments.
As a result, AutoZone is accelerating the pace new Mega Hub openings.
As of the end of Fiscal 2025, Auto Zone operated 133 Mega Hubs including 14 that opened in just the past three months.
Another 25-30 Mega Hubs are expected to open in Fiscal 2026.
But AutoZone is still less than halfway to its target of 300 Mega Hubs at full buildout to support its existing and future store network.
So where is AutoZone finding the real estate to create Mega Hubs?
Primarily through the repurpose of vacant Big Box retail buildings—particularly space that was occupied by bankrupt retailers like Kmart, Toys R Us Bed Bath & Beyond and Big Lots.
Some of the initial AutoZone Mega Hubs opened in real estate vacated by retailers like Toys R Us and Kmart that filed for bankruptcy over 7 years ago.
Approximately 10% of the 133 current AutoZone Mega Hubs are repurposes of former Kmart and Toys R Us properties.
Many of 25-30 Mega Hubs planned for 2026 are expected to backfill real estate vacated by more recently bankrupt retailers like Bed Bath & Beyond and Big Lots that filed for bankruptcy in 2023 and 2024, respectively.
Like this former ~28,000 square foot former Bed Bath & Beyond in Dayton, OH that AutoZone leased in May for a Fiscal 2026 Mega Hub.
As well as this former ~45,000 square foot Big Lots in Tucson that AutoZone leased in June for another 2026 new Mega Hub store.
AutoZone leased yet another former Big Lots this past July—a ~32,000 square Big Box suite in the South Dekalb Plaza in Decatur, GA—for conversion into a 2026 Mega Hub.
More recently Auto Zone has set its sites on repurposing the real estate of more recently bankrupt retailers.
Like this ~33,000 square foot former Rite Aid in Toledo, Ohio which is also expected to be a 2026 Mega Hub.
AutoZone is now likely working on its targets for Fiscal 2027 Mega Hub stores.
And it is likely to turn to…
Read More: AutoZone Is Repurposing The Real Estate Of Bankrupt Big Box Retailers As
