D
uring AutoZone’s FY24 year‑end earnings call, executives underscored Mega Hubs as the linchpin of growth. While a standard AutoZone store spans about 6,500 sq ft and stocks roughly 21,000 SKUs, Mega Hubs can reach 50,000 sq ft and hold over 100,000 items. They also serve as distribution centers for surrounding satellite locations.

    Mega Hubs have outperformed the company’s commercial DIFM segment, delivering weekly sales that exceed the 9 % average of other DIFM programs. CFO Jamere Jackson noted that these centers generate a substantial lift within the store’s own sales and broaden the product mix for partner locations. He added that expanding coverage and parts availability continues to boost both DIFM and DIY revenue streams, prompting AutoZone to accelerate new Mega Hub openings.

    By the close of FY25, AutoZone operated 133 Mega Hubs, 14 of which opened in the preceding three months. The company projects an additional 25–30 hubs for FY26, yet it remains below the 300‑hub goal needed to fully support its existing and future network.

    The primary source of space for these hubs is the repurposing of vacant big‑box retail sites left by bankrupt chains such as Kmart, Toys R Us, Bed Bath & Beyond, and Big Lots. Roughly 10 % of the current 133 hubs occupy former Kmart or Toys R Us locations. Planned FY26 hubs will fill sites recently vacated by retailers that filed for bankruptcy in 2023–24, including Bed Bath & Beyond in Dayton, OH (≈28,000 sq ft), Big Lots in Tucson, AZ (≈45,000 sq ft), and another Big Lots in Decatur, GA (≈32,000 sq ft). A former Rite Aid in Toledo, Ohio (≈33,000 sq ft) is also slated for a 2026 hub.

    Looking ahead, AutoZone is likely targeting FY27 openings and will continue to source locations from retailers that have liquidated earlier this year, such as Joann Fabrics, which closed about 800 big‑box stores nationwide following its 2025 bankruptcy filing.