Shares in Bapcor Ltd (ASX: BAP) have slipped slightly in early trade after the company gave the market a glimpse into its next 5 years of operation. The Bapcor share price is down 0.72%, trading at $8.28 at the time of writing.
Bapcor released the outline of its latest 5-year strategy to the ASX today after its investor day event was cancelled due to COVID-19.
The company provides vehicle parts, accessories, equipment, and services through brands including Autobarn, Autopro, Midas, and Burson.
Image source: Getty Images
Bapcor's 5-year goals
If Bapcor's 5-year strategy is successfully carried out, the company will increase its presence in Australia, New Zealand, and Asia, and optimise several factors of its business.
New stores
Bapcor wants to open more than 694 new stores over the next 5 years.
Of those, 60 would be "trade focused" and supply parts to workshops in Australia and New Zealand, while 41 would be selling parts for light and heavy commercial vehicles.
The company also aims to open 77 new Autobarn stores, and 96 new Autopro stores.
It plans to open 395 workshops in Australia and another 31 in New Zealand.
Finally, in 5 years' time, Bapcor hopes to have at least 60 stores in Thailand, building on the 6 stores it currently operates in that country.
Asian expansion
In March, Bapcor announced it was to acquire 25% of Tye Soon. It expects this acquisition to help its planned expansion in Asia.
Over the next 5 years Bapcor wants to increase turnover at its Thailand stores from $4 million to $100 million annually.
It also plans to grow its total Asian turnover to $500 million annually.
Currently, Bapcor and Tye Soon bring in a combined $204 million from Asian markets each year.
Supply chain, technology, ESG, and own brand targets
To optimise its business, Bapcor will be consolidating the work of its 13 Victorian distribution centres into 1 entity.
The new distribution centre will use "state of the art" technology to maximise its efficiency.
Bapcor will then replicate its consolidation process in Queensland, where it currently has 7 distribution centres.
Additionally, the company is focusing on increasing its own brands' sales targets in all its business segments.
It's also upgrading many of its business-to-business and business-to-customer e-commerce platforms, its point-of-sale system, and its workshops' support system.
Finally, the company is prioritising environmental, social, and governance (ESG) strategies. One of its ESG strategies is to be a focus on employee training.
Bapcor share price snapshot
2021 has been good for the Bapcor share price, which has gained 6% year to date.
It's also 42% higher than it was this time last year.
The company has a market capitalisation of around $2.8 billion, with approximately 339 million shares outstanding.
