Retail

CarMax Has Yet to Max Out

Image Credit: Wikipedia

CarMax, America’s largest used car dealer, is a Fortune 500 company, and has been in business for nearly 25 years.

And somehow, 12% of Americans still haven’t heard of it. Not many mature retail companies still have that sort of growth potential just waiting to be tapped.

With its latest earnings call set for June 21 – and with a long-standing record of routinely beating the street – it won’t surprise to see this company continue to be talked up in investment circles.

In the meantime, here’s a quick snapshot of who the CarMax customer is …

UZED CARS: American adults under the age of 25 – that’s Generation Z – are in a peculiar place when it comes to CarMax. For starters, at 14%, they are the age group most likely (along with Gen Xers) to have tried and liked CarMax. But they are also the age group most likely – by a large margin – to have never heard of the company. As stated earlier, there is big-time growth potential here.

MONEY, MONEY, MONEY: Households making more than $100,000 and less than $50,000 were both more likely to have tried and liked CarMax than those making between $50,000 and $100,000.

GO (SOUTH) WEST YOUNG MAN: CarMax has 211 locations across the country, with California (25) and Florida (20) having the most of any state. Perhaps unsurprisingly, Americans in the west and south have tried and liked CarMax at nearly double the rate of people in the north and east. Again – not to belabor the point – room for growth.

CITY SLICKER: City residents look a lot like those Gen Z numbers from above, with this portion of the population leading the way in “tried and like,” but also leading the way in “never heard of it.” Anyone else want to say “room for growth,” or nah?

NEXT TIME, CARMAX: Americans who have yet to use CarMax, but plan to at some point, may just be CarMax’s immediate next batch of customers. More than two out of three people who plan to give CarMax a whirl in the future say their next car will be used.

BIG BOX BONANZA: Here’s some interesting numbers: Americans with a favorable view of Walmart have a 30% higher view of CarMax than people who have a favorable view of Target. And guess what? It goes in the other direction as well, as people with an unfavorable view of Target like CarMax at a 50% higher rate than people who have a negative view of Walmart.

FEELING HOT, HOT, HOT: This is probably too fun to leave out: Americans with a favorable view of sriracha sauce have tried and liked CarMax at a 45% higher rate than people who loathe sriracha.

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