F. Baduel (AAG): “We are still in a highly fragmented market, which we intend to take advantage of”

Franck Baduel: Unfavourable market conditions in Europe, as everyone knows, with cost inflation of 5 to 10% depending on the country, both for consumer goods and wages... Only in France did inflation stay flat, whatever some may say, with inflation neither skyrocketing nor falling. It is important to understand that we observed quite the opposite in the UK, the Republic of Ireland, Holland, Spain, Germany, etc. In the automotive sector, the upstream industry cannot boast of exceptional performance, with manufacturers struggling, a very limited penetration rate for electric vehicles, except for Chinese brands, and OE manufacturers hit by massive restructuring plans. The downstream chain is somewhat better protected due to the ageing fleet. Parts distributors (light and heavy duty vehicles) have held their own, and repairers have billed at revised labour rates.

F. B.: We generated €3.6 billion in turnover – still 16% of GPC's total turnover – with 785 subsidiaries in eleven countries. The group is continuing its acquisitions to drive its growth plan with 12 buyouts generating a total of nearly €100 million in turnover, including that of Recambios Colon in Spain (accounting for €50 million of the total). We are strengthening our position in this region, following Lausan in 2022 and Gaudi in 2023. In the Netherlands, we acquired NB Automotive Group, as well as other distributors specialising in tyres. Excluding Colon, the acquisitions were made in companies with a size of between €1 million and €15 million, and more particularly in the UK and Ireland with six companies: Autosupplies Ltd (paint), Car Spares (Groupauto), United Aftermarket Network (UAN), etc.

F. B.: A European roll-out remains a possibility and is currently being studied. The NAPA brand began its European adventure in 2019 in the United Kingdom, a promised land for private labels. We then replicated it across Europe, except in Poland, as we do not have a logistics platform or our own branches there. A year ago, the decision was made to roll out the Napa Auto Parts network, a concept adopted from the existing model in the United States, across all our subsidiary stores in the UK and Ireland. The pivot remains the NAPA brand (€500 million in turnover this year), with a growing market share still driven by the UK, where 50% of sales are made by private labels. Our penetration rate is 20% in high-volume countries (versus 5% in markets where volumes are lower).

F. B.: Indeed, this budget brand level (€200 million in turnover), aimed at price-conscious customers, was launched in the UK three years ago, where it is performing very well, before being replicated in France, Spain, Portugal, the Netherlands and Belgium. We are developing Fahren according to the level of maturity in each country (batteries, distribution, etc.).

F. B.: The current environment offers little visibility, so we need a good dose of pragmatism and agility to navigate it! For the past four years, we have been structuring ourselves around projects that we are still integrating. So there will be no revolution to expect in 2026, just the meticulous execution of our initiatives: the integration of electronic catalogues via Parts360, already in place or being rolled out in Belgium, the Netherlands, the UK, France, etc.; IT standardisation (Germany, etc.); continuous improvement of the First logistics platform in France, after some chaotic ups and downs and a new management team to stabilise operations and boost service levels. In addition, our 85,000 m² platform in Rotherham, UK (semi-automated with 400 robots) should be fully operational by the beginning of the year. Add to this the deployment of Napa and its network, the modernisation and interconnection of our regional platforms (UK, Netherlands, Belgium, etc.). Stabilising all these operations should enable the group to sail in calmer and less troubled waters. 

F. B.: It is true that macroeconomic and political factors are causing considerable disruption to the markets. It is impossible to make any forecasts for France in the very short term. Germany has been in recession several times over the last three years. The UK has been heavily affected by social and fiscal decisions impacting the performance and competitiveness of British companies. But let's not be overly pessimistic! Local and external growth opportunities are exponential in Spain, Ireland, the Netherlands and Belgium! While the automotive market is questioning its future, the indicators for the European vehicle fleet are positive, with a fleet that continues to grow (+1.3%) and age, and an increasing number of kilometres travelled (excluding Germany). We are still in a highly fragmented market, which we intend to take advantage of. 

Lire la version française :  « Nous sommes encore sur un marché très fragmenté dont nous allons profiter »