• Retail business review to stabilize and grow core assets
• Wholesale operations to be streamlined and optimized
• Significant organic growth opportunities across all business units
• Investing in technology and digital solutions to modernize operations

Bapcor Ltd (ASX: BAP) has announced a strategic update presentation, outlining its plans to drive sustainable growth and strengthen its position as the leading player in the Australian and New Zealand automotive aftermarket industry. The key focus areas include stabilizing and growing the Retail business, streamlining Wholesale operations, and leveraging significant organic growth opportunities across the company's Trade, Networks, and Retail segments. The Retail business review has identified several areas for improvement, including refining the product assortment, building brand value, and managing stores more effectively. The company plans to terminate leases or relocate loss-making stores, optimize product mix and assortment, and implement a new eCommerce platform to enhance the customer experience. In the Wholesale segment, Bapcor will eliminate internal sales to create better efficiencies and clarity, sell to resellers with different pricing to differentiate from the Burson offering, and drive owned brand programs with a stronger customer focus. The company will also explore disposal options for brands that are not viable or not part of its core strategy.Bapcor has outlined six strategic imperatives to set the company up for growth, including optimizing its network, consolidating to a single supply chain, putting the customer at the center of everything, digitalizing the business, improving store fitness, and simplifying the overall business. The company is also focused on disciplined capital management, maximizing shareholder value, and driving a sustainable future through its ESG initiatives.The company has provided clear performance metrics to track the delivery of its strategic priorities, including financial targets such as revenue and EBITDA growth, as well as non-financial metrics related to safety, customer satisfaction, employee engagement, and digital transformation.

Bapcor is targeting a revenue CAGR of over 5% and an EBITDA CAGR of over 10% over the next 5 years. The company aims to improve its ROIC to over 13.5% and reduce its inventory-to-sales ratio to below 25% by FY30.

Bapcor is well-positioned to capitalize on the growing demand for automotive aftermarket parts and services in Australia and New Zealand, driven by an expanding car parc and the sustained age of vehicles. The company's focus on optimizing its supply chain, investing in technology and digital solutions, and strengthening its customer-centric approach will support its long-term growth and market leadership.