Memphis-based AutoZone Inc. is ramping up its long-term growth strategy with plans to invest $1.6 billion in capital expenditures during FY 2026, company president and CEO Phil Daniele announced during the retailer’s Q1 2026 earnings call on Dec. 9.
A major focus of the investment will be expanding AutoZone’s store footprint across the U.S. and internationally, including opening additional hubs and megahub locations designed to bring more inventory closer to customers.
Daniele said AutoZone intends to make a similar $1.6 billion investment in FY 2027, underscoring the company’s commitment to sustained expansion.
Record Store Openings
AutoZone’s total store count has now surpassed 7,700 locations worldwide. In Q1 2026, the company opened 53 net new stores — including 39 in the U.S., 12 in Mexico, and two in Brazil. That compares to 34 openings in the same quarter last year.
“This kind of first quarter growth is near a record for us,” Daniele said. “We’re excited about the pace of these openings and confident that this momentum will support future earnings growth globally.”
Growth of Megahubs
A key part of the retailer’s strategy includes expanding its network of megahub stores, larger facilities that anchor inventory for surrounding AutoZone locations. The company is also repurposing vacant big-box buildings to support this effort.
AutoZone currently operates 137 megahub stores, after adding four more during the quarter. CFO Jamere Jackson said the company plans to open at least 30 new megahub locations in FY 2026, with a long-term goal of building out 300 megahubs worldwide.
A Major Memphis Employer
AutoZone reported $18.9 billion in revenue during FY 2025 and employs 130,000 people globally. It remains one of Memphis’s largest public companies by revenue and has approximately 2,400 employees in the Memphis area.
