Memphis, December 12, 2025
AutoZone, Inc. is enhancing its supply chain by opening new distribution centers in Mexico and Brazil. The facilities aim to improve product availability and support operational efficiency. The new center in Brazil is set to open in late 2025, while the expanded center in Mexico will double its size by March 2026. These moves align with AutoZone’s strategy to grow its international presence and achieve its objective of opening 200 stores annually by fiscal year 2028.
AutoZone Expands International Supply Chain with New Distribution Centers
Memphis-based AutoZone, Inc. is enhancing its international supply chain by establishing new distribution centers in Mexico and Brazil. This strategic move aims to bolster the company’s presence in these key markets and improve product availability for customers.
Expansion Details
AutoZone is investing in the construction of a new distribution center in Brazil, expected to open in late calendar 2025. This facility will support the company’s growing operations in the region and enhance its ability to serve customers more efficiently. Additionally, the company is expanding its existing distribution center in Monterey, Mexico, nearly doubling its size to better meet the demands of the Mexican market. This expansion is anticipated to be fully operational by March 2026. These initiatives are part of AutoZone’s broader strategy to strengthen its supply chain infrastructure and support future store growth in the Americas.
Strategic Objectives
The establishment of these distribution centers aligns with AutoZone’s “Supply Chain 2030” initiative, which focuses on improving the company’s supply chain network to support store growth through the year 2030. By investing in these facilities, AutoZone aims to enhance its operational efficiency, reduce delivery times, and ensure a more reliable supply of products to its stores in Mexico and Brazil. This expansion is expected to contribute to the company’s goal of opening approximately 200 international stores annually by fiscal year 2028, with a significant portion of this growth targeted in Mexico and Brazil.
Background Context
AutoZone, headquartered in Memphis, Tennessee, is the largest retailer of aftermarket automotive parts and accessories in the United States. The company has a significant presence in Mexico and Brazil, with 895 stores in Mexico and 149 in Brazil as of November 22, 2025. The new distribution centers are part of AutoZone’s ongoing efforts to enhance its supply chain capabilities and support its international expansion strategy. By investing in these facilities, AutoZone aims to improve product availability, reduce costs, and better serve its customers in these key markets.
Financial Implications
The investments in the new distribution centers are expected to have a positive impact on AutoZone’s financial performance. By improving supply chain efficiency and product availability, the company anticipates increased sales and customer satisfaction in Mexico and Brazil. These developments are also expected to strengthen AutoZone’s competitive position in the international automotive parts market, contributing to the company’s long-term growth and profitability.
Conclusion
AutoZone’s expansion of its international supply chain through the establishment of new distribution centers in Mexico and Brazil underscores the company’s commitment to enhancing its global operations and better serving customers in these important markets. These strategic investments are expected to drive growth, improve operational efficiency, and strengthen AutoZone’s position in the international automotive parts industry.
Frequently Asked Questions (FAQ)
What is AutoZone’s “Supply Chain 2030” initiative?
AutoZone’s “Supply Chain 2030” initiative focuses on improving the company’s supply chain network to support store growth through the year 2030. This includes investments in new distribution centers and technological advancements to enhance operational efficiency and product availability.
When is the new distribution center in Brazil expected to open?
The new distribution center in Brazil is expected to open in late calendar 2025. This facility will support AutoZone’s growing operations in the region and enhance its ability to serve customers more efficiently.
How will the expansion of distribution centers impact AutoZone’s operations?
The expansion of distribution centers is expected to improve AutoZone’s operational efficiency by reducing delivery times and ensuring a more reliable supply of products to its stores in Mexico and Brazil. This will enhance customer satisfaction and support the company’s growth objectives in these markets.
What are AutoZone’s goals for international store openings by fiscal year 2028?
AutoZone aims to open approximately 200 international stores annually by fiscal year 2028, with a significant portion of this growth targeted in Mexico and Brazil. This expansion is part of the company’s broader strategy to strengthen its presence in key international markets.
How will the new distribution centers affect AutoZone’s financial performance?
The investments in new distribution centers are expected to positively impact AutoZone’s financial performance by improving supply chain efficiency, increasing sales, and enhancing customer satisfaction in Mexico and Brazil. These developments are anticipated to strengthen the company’s competitive position in the international automotive parts market, contributing to long-term growth and profitability.
| Feature | Details |
|---|---|
| New Distribution Centers | Establishing facilities in Mexico and Brazil to enhance supply chain efficiency and product availability. |
| Supply Chain 2030 Initiative | Focuses on improving the supply chain network to support store growth through 2030. |
| International Store Openings | Aiming to open approximately 200 international stores annually by fiscal year 2028, with significant growth in Mexico and Brazil. |
| Operational Efficiency | Investments expected to reduce delivery times and ensure a reliable supply of products to stores in key markets. |
| Financial Impact | Anticipated positive effects on sales, customer satisfaction, and competitive position in the international automotive parts market. |
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