Dive Brief:
- Advance Auto Parts and Interstate Batteries have forged a new partnership to make Interstate batteries available at Advance Auto stores, according to an Advance AUto press release.
- More than 4,900 U.S. and international Advance Auto locations will now stock Interstate, as well as offering free battery testing and installation.
- The Dallas News reported that Interstate has been prepping its supply chain for this partnership as Advance Auto will add garages to Interstate distribution.
Dive Insight:
The partnership between Interstate and Advance Auto can be seen as a response to the digitization of the auto parts aftermarket. As Amazon makes headway in the auto parts aftermarket and Goodyear sells in online markets in China, e-commerce has the potential to really hurt wholesale distributors like Interstate.
Although Interstate's batteries are recognized as the best around, declining sales at its 200 retail locations could be the reason Interstate is partnering with Advance Auto. Now Interstate will be able to sell batteries in more than 5,000 retail locations across Advance Auto's network — that could be jumpstart Interstate needs to lift sales.
Furthermore, this kind of partnership will help Interstate gain more of a foothold in the auto parts aftermarket and compete with online sellers.
By using Advance Auto's garages, Interstate will improve customer experience and establish a bigger customer base. Not only will the battery maker develop a larger retail presence, it will also streamline its supply chain.
Because Interstate already has brand recognition, this could be the operational tweak the company needs to grow.
