While jobbers remain an integral part of the light vehicle distribution system, there are four concerns for them moving forward
Fort Wayne, Ind.—While jobber stores remain an integral part of the light vehicle distribution system, they face an number of challenges that have been growing in recent years.
“Changes are sweeping through the auto parts distribution network and threaten the jobbers’ retail and wholesale clout,” states Lang Marketing in a new report.
Jobber store closings accelerated from 2020 through 2023, most notably in 2020 during COVID-19, then eased during the next three years — but the pace of jobber store loss was still more than quadruple the yearly decline from 2016 to 2019.
While regional jobber population patterns remained largely stable during 2023, there were notable shifts in where store losses occurred compared to trends of the previous three years, especially in Western areas. Preliminary findings from Lang Marketing suggest these jobber store trends continued through 2024.
According to the market analysis, there are four concerns for jobbers moving forward.
• Warehouse direct sales to installers and other wholesale accounts are increasing, leaving many jobbers out of the distribution loop.
• Jobbers are not as well positioned as some of their major competitors to supply the fast-growing foreign nameplate aftermarket in the U.S. This is a market segment in which direct-selling import warehouses are expanding their footprint, offering a product-brand mix that is especially appealing to outlets repairing foreign nameplates.
• Retail auto parts stores are expanding their commercial distribution business, taking wholesale market sales share from jobbers.
• The growth of e-Commerce is taking DIY parts business from jobbers and other retail parts outlets. e-Commerce is also making headway in the DIFM repair market, which is the core customer base for jobbers.
Regions where jobber stores are concentrated
Over 60% of jobber outlets are located east of the Mississippi. At mid-year 2023, the East North Central states had the greatest number of jobber stores, over 3,200, followed by the South Atlantic region, which had nearly as many jobber outlets.
The South Atlantic and East North Central regions represented about 40% of jobber locations nationwide at mid-year 2023. The Middle Atlantic area was third in jobber count, topping 2,100 outlets.
The West South Central region (dominated by Texas) was home to the largest number of jobbers west of the Mississippi, with about 1,700 stores in 2023, followed by the Pacific region (Washington, Oregon, and California) with over 1,500 jobber outlets at mid-year 2023.
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