Retail sales of auto parts have slowed over the past several months, Genuine Parts Co. chairman and CEO Thomas Gallagher said, as shoppers' continued uneasiness over the economy has impacted their willingness to spend.
But Gallagher believes a strong back-to-school shopping season will spur those shoppers to begin buying again, he said in the company's second-quarter conference call Thursday.
"I think it's just a general uneasiness or malaise among the consumers right now," he said. "We are somewhat encouraged by the reports coming out that say they expect back-to-school to be reasonably good this year and hopefully that's going to translate into some increased purchasing of some of the things we sell as well."
Already in July, he said, commercial sales of auto parts have picked up. The commercial auto parts business was stronger than the retail business for the entire second quarter, though both slowed from the first part of the year.
Genuine Parts Co., which is based in Atlanta, sells industrial parts, office supplies and electronic components, in addition to auto parts. While office supply sales continue to be slow due to a shift away from paper, Gallagher said he is optimistic about the prospects for the company's other businesses.
Genuine Parts Co. made $168.6 million for the quarter, an 11 percent increase over the $151.8 million the company made in the second quarter of 2011. Sales of $3.3 billion in the quarter were up 5 percent over the same period last year.
About the Author
