CarParts.com - Achievement in Organization Recovery

Company: CarParts.com, Torrance, CA
Entry Submitted By: 5W Public Relations
Company Description: For over 25 years, CarParts.com has been a leader in the e-commerce automotive aftermarket, providing replacement parts, hard parts and performance parts and accessories. With over 50 million parts delivered, we've helped everyday drivers across the continental United States find the right parts to keep their vehicles on the road.
Nomination Category: Achievement Categories
Nomination Sub Category: Achievement in Organization Recovery

Nomination Title: CarParts.com

CarParts.com (NASDAQ:PRTS) was reimagined in 2019 and is now a leading technology-driven e-commerce company improving the way drivers shop for the parts they need.

After being in business for over 20 years, it has focused and streamlined its efforts these past two years to build a seamless factory-to-consumer online shopping experience. The company-owned national distribution center network brings the very best brands and manufacturers directly to consumer hands, cutting out all the brick-and-mortar supply chain costs to provide quality parts at a discount for loyal customers, many of whom are turning to DIY to get back on the road faster.

Previously named U.S. Auto Parts, CarParts.com was given this new name to reflect the tech-savviness and e-commerce focus. Today, it is a tech company every bit as much as it is an automotive company, and fundamentally a different organization than it was two years ago.

The company was recently included in the Russell 2000 Index and was named one of 2020s Best Places to Work in Los Angeles by the Los Angeles Business Journal.

At the end of 2018, CarParts.com had no cash and $22 million worth of debt. The company brought in new executive leadership, including Lev Peker (CEO) and David Meniane (COO/CFO), who have completely rebuilt CarParts.com from the ground up. Over the past two years, they have led the firm to exceptional, double-digit profitable growth, and now operate the firm with $60M cash on hand with no debt. Led by principles of financial discipline, the company has grown its market cap more than 26x, from $30M to $800M.

This tremendous increase was driven by revenue growth from the flagship website, CarParts.com, which continues to be its fastest growing channel (105% YoY growth). Today, it is profitable on nearly every transaction it makes, even when factoring in customer acquisition and fulfillment costs. In 2020 alone, the company hired 800 new employees amidst high unemployment rates, and it is projected to have over 2,000 employees early this year.

Compared to its competitors, CarParts.com is the de facto leader in the e-commerce space for auto parts. With a 300% increase in site traffic over the past two years and a 1200% stock increase (despite the pandemic), CarParts.com is performing in the 99th percentile for public companies, and has been touted by sites such as The Motley Fool, CNBC, The Wall Street Journal, and Yahoo! Finance as one of the hottest e-commerce stocks in the industry.

Over the last two years, the firm has seen record high sales increases, profit margins, stock evaluation and increased website traffic. This is attributed to the company’s ability to disrupt the traditionally brick and mortar auto parts industry, and shift the shopping experience online. Both Lev Peker and David Meniane worked to remodel CarParts.com into a modern, scalable e-commerce company that disrupted the after-market auto parts industry. Their belief in right part, right time, right place has connected with consumers who increasingly look to DIY solutions in order to get back on the road more quickly, especially during the pandemic.

Today, CarParts.com’s web traffic continues to grow three times faster than its peers, and its customers continue to return to CarParts.com – the company retains roughly one-third of its customers and expects this number to continue to grow. It invested in a Dallas distribution center, which has created 200 jobs to date, is already receiving inventory seven days a week, and has shipped over 100,000 packages.

COO & CFO David Meniane believes that although the company’s stock price fluctuates, the mission and fundamentals of the business should always be the focus. The day-to-day financial focus is on operations – the company’s people, distribution centers, e-commerce site, supply chain, relationships with manufacturers, etc. By keeping a long-term, disciplined vision, David has achieved unprecedented company growth and financial success for CarParts.com.

Both Lev Peker and David Meniane received Silver Medals in the 10th annual Best in Biz Awards, which recognizes them both for spearheading the company’s organizational and financial turnaround. Rare for one company to receive two awards in this competition, it is a true testament to their strength as leaders. Lev and David took a company in distress, remodeled financial operations, and built an impactful service for thousands of consumers across the country.