The story of CarMax's development began with a survey conducted in 1991. Together, the pair developed the CarMax concept, a business approach that drew its inspiration from the sprawling Circuit City chain and its "big-box" retail concept. Ligon worked under Sharp, serving as Circuit City's senior vice-president of corporate planning. A 375-store, consumer electronics chain with $7 billion in sales during the early 1990s, Circuit City was led by Sharp. The corporate entity behind the formation of CarMax was Circuit City Stores, Inc. The creation of the concept was the work of Richard Sharp and W. CarMax operates 37 used car superstores and 17 new car franchises.ĬarMax, industry observers noted at the time of its inception, triggered a revolution in used car retailing, sending tremors of fear among the legions of traditional, small-sized dealers and establishing a new business model that was quickly aped by others. The prices of the vehicles are fixed in an effort to create a more relaxed sales atmosphere. CarMax's used car lots are patterned after the mass-merchandising business model of its former parent company, Circuit City Stores, Inc., operating as "superstores." The company's stores typically contain roughly 500 used cars no more than six model years old. operates a chain of used car lots and new car franchises. CarMax's operating strategy is to build customer confidence and satisfaction by offering high-quality vehicles therefore, fewer than half of the vehicles acquired through the appraisal process meet CarMax standards for reconditioning and subsequent retail sale.ġ993: The first CarMax used car lot opens in Richmond, Virginia.ġ996: CarMax acquires its first new car franchise.ġ997: A portion of CarMax is sold to the public.ġ999: CarMax records its first annual profit.Ģ002: CarMax is spun off from Circuit City Stores.ĬarMax, Inc.
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