Jiffy Lube Is #1, But Watch Out for Wal-Mart

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Jiffy Lube continues to dwarf the next largest fast-lube chains by nearly a three-to-one ratio, according to the 2006 Tops in the Fast-Lube Industry rankings reported this month by National Oil & Lube News. With 2,164 total stores, the Jiffy Lube chain has grown by just 21 facilities since March 2000. But Wal-Mart, with about 2,000 U.S. Wal-Mart Tire and Lube Express stores (not included in the fast-lube list), is challenging the traditional quick-lube leaders for the countrys oil change business.

Fifty sevenfast-lube companies operating a total of 7,411 oil-change facilities are included on the 2006 list published in the March issue of National Oil & Lube News. NOLN defines a fast lube as a business whose primary sales model is the offer of quick, convenient motor oil changes. A fast-lube chain is any six or more fast lubes owned by the same company, and/or operated under the same or similar signage.

NOLN reports that the dozen top ranking U.S. fast lubes are:

  1. Jiffy Lube, wholly owned by Shell Oil Co., with 1,883 franchised and 281 company-owned stores.
  2. Pennzoil 10-Minute Oil Change, 887 independently-owned stores wearing Pennzoil signs.
  3. Valvoline Instant Oil Change, 778 company-owned and franchised stores.
  4. Texaco Xpress Lube, 502 independent facilities, this program has doubled in size since 2002.
  5. Valvoline Express Care, adding an average of 70 fast lubes a year since 2001, this chain now numbers 387 independently-owned stores.
  6. Kwik Kar, 368 company-owned stores. This is one of the few true turnkey lube programs in existence, says NOLN.
  7. Shell Rapid Lube, 275 independently-owned stores. Shell no longer actively markets the Rapid Lube chain, NOLN reports.
  8. Mobil 1 Lube Express, 237 independently-owned facilities, the chain has grown 26 percent in the past year.
  9. Citgo Lube, 203 independent stores. NOLN says, After three years of double-digit facility growth, Citgos branded program stalled a bit this year.
  10. Grease Monkey, 188 company-owned and franchised stores, down 6 percent from 2005.
  11. ConocoPhillips Lube Shop, 163 independent stores, combining the former Phillips 66 TropArtic Fast Lube and 76 Express Lube programs into the Lube Shop program.
  12. Express Oil Change, 160 franchised and company-owned stores.

Oil company signage programs were the big movers, reported Garrett McKinnon, NOLN editor. ExxonMobils Mobil 1 Lube Express program/chain grew by 51 stores, the largest increase on our list for the year. And Mobil wasnt alone in growing either. Chevron added 36 stores to its Texaco Lube program, and Valvoline added 21 stores to its Express Care program.

NOLN puts businesses such as mass-merchant retailers, muffler shops, car washes, dealerships, etc. that offer oil changes as an add-on service in a category it calls oil change-plus. This category includes Wal-Mart, Midas, Firestone and other providers of oil changes.

There are about 3,800 U.S. Wal-Marts, McKinnon told Lube Report, and about 2,000 now include Wal-Mart Tire and Lube Express stores. At the rate the chain is growing, it will soon overtake traditional market leader Jiffy Lube in number of oil-change outlets.

The complete Tops in the Fast-Lube Industry Survey, including growth projections for the top chains, projected industry sales figures, and information about the oil change-plus chains, is available at no cost to paid subscribers to NOLN at the magazines web site, www.noln.net. Non-subscribers can purchase the full survey for $30.

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