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AutoZone's Mega Hub Expansion Fuels Strongest Sales Growth Since 2023

AutoZone reported an 8.4% year-over-year sales increase in the third quarter, marking its largest quarterly gain since Q2 fiscal 2023, as the auto parts retailer accelerates its distribution transformation. The retailer opened 14 mega hubs during the quarter and plans 15 additional openings in Q4. AutoZone is dedicating most of its $1.6 billion in 2026 capital expenditures to hub infrastructure. Similar investment is planned for 2027. The mega hubs function as both retail stores and distribution centers, stocking more than 100,000 SKUs. They position inventory nearer to customer locations. The strategy is delivering faster fulfillment at individual stores while serving as supply sources for other locations. As of 2024, AutoZone was targeting 200 mega hub stores as part of its long-term inventory optimization plan.