Recession-Proof Retailer

Posted on October 27, 2008 by Pete Kosowski

IABC Marks 100th Location and Record Sales As Consumers’ Need for Batteries Rises

(DALLAS) – How can one national business celebrate record sales and company growth despite times of thinner wallets and less consumer spending? Interstate Batteries Franchise and Development, the franchisor of Interstate All Battery Center (IABC), knows the key is to cater to consumer needs that remain unaffected by economic trends.

"Consumers are, to some extent, spending (money) out of need rather than desire," said Scott Hoyt, Director of Consumer Economics at Moody’s Economy.com in a June article.

"The strength of our business is based solidly on the fact that consumer demand for batteries continues to rise despite our economic state," said Interstate Batteries Franchise and Development Director Justin Darland. "Replacement batteries for automobiles and forklifts to road signs and heart defibrillators meet critical consumer needs and remain unaffected by recession."

Experts agree. Analysts project the retail battery category will reach $50 billion by 2010 and IABC’s record sales reflect these consumer trends. This year, IABC’s total revenue is up seven percent versus the same time last year and the company, who recently celebrated a franchise signing for its 100th store location, continues to expand throughout the nation.1

While items like watches, laptops, alarm systems, cordless tools, radios, iPods, cell phones and flashlights will always rely on IABC battery solutions, the company’s business model allows stores to continually expand product offerings to adjust to changing consumer needs. Gadgets run by battery and solar-power or cost-savings tools combat the rising costs of electricity and gas prices and invaluable energy savings to IABC customers.

Electricity usage monitors that connect to household appliances can assess efficiency by displaying energy consumption and calculating electrical expenses. Specialized power strips protect valuable electronics while calculating their costs. Solar outdoor spotlights offer powerful light without crashing the electric bill. Even electric bicycles offer alternatives to rising gas prices and make local commutes affordable.

"The energy efficient devices we recently introduced in our stores are flying off the shelves," said Darland. "Coupled with the ever-growing demand for battery-powered products, IABC has found a solution to satisfy consumer needs for years to come."

About Interstate All Battery Centers
Founded in 1952 and based in Dallas, Interstate Batteries is a privately held group of corporations, which includes a company with 305 distributors that service more than 200,000 dealers throughout the United States, Canada and select international locations. Interstate is the top-selling replacement automotive brand battery in North America, selling more than 15 million units annually. Interstate All Battery Centers currently has more than 108 stores in 35 states, Canada and Puerto Rico.

1. Average franchise gross sales for fiscal year 2007 were $858,550 vs. fiscal year 2008 $916,386. The average sales total of $916,368 represents operating results for 14 freestanding franchised centers open for the 12 month fiscal year 2008, during which gross sales for those centers ranged from 467,866 to 1,469,738. Of the 14 centers, 6 centers or 43% achieved gross sales exceeding the average. Franchisee gross sales may differ and there is no assurance a franchisees will attain the average sales shown here. See the Franchise Disclosure Document for details.