Why did Super Autobacs stop being exciting? Thinking from Shinonome, the current state of Autobacs and investment judgment
In the past, Super Autobacs was not just a store for buying car supplies.
If you went to Tokyo Bay Shinonome, there were massive amounts of custom parts lined up, from wheels, mufflers, coilovers, and aero parts to seats, gauges, and car audio.
There was a cafe inside the store, and events by manufacturers and shops were held on weekends.
The staff uniforms and customer service were rougher than they are now, and the entire store had an atmosphere like an American car shop or a giant garage.
Even if you didn't plan to buy anything, you would go there anyway.
While looking at the cars lined up in the parking lot and walking around the store, you would find something you wanted to install next.
The old Super Autobacs was a hub for trends for car enthusiasts.
The current Autobacs also has a clear role in tires, oil, batteries, vehicle inspections, and maintenance.
However, if you know how it used to be, the impression remains that while it is convenient, it is not as exciting as it once was.
Has Autobacs become weaker?
Have the times and needs surrounding cars changed?
Has it become harder to customize due to vehicle inspections and regulations?
This time, I will organize why the old Super Autobacs was strong, and then dig into how to evaluate Autobacs Seven as an investor.
To start with the conclusion,
The biggest reason why the old Super Autobacs became difficult to sustain does not lie solely with Autobacs.
The car supplies market itself has shrunk, car navigation and audio have been absorbed into factory-installed equipment, and product information has moved from stores to the internet.
The electronic control of cars has also progressed, and there are more tasks that cannot be completed just by replacing parts as before.
To adapt to this change, Autobacs shifted its focus to tires, vehicle inspections, maintenance, and car sales.
I think this change in direction was correct from a management perspective.
However, in the process, the strength of being a 'store you want to go out of your way to visit,' which only Autobacs had, has also faded.
In terms of current business maturity, I rate Yellow Hat higher.
Autobacs is not so much a perfected, high-profit company as it is a company pursuing whether it can raise its profit margins and ROE by combining stable revenue from maintenance with the brand assets it has built through car culture.
The Super Autobacs of the past was a destination, not just a store.
Super Autobacs began its rollout in 1997.
It was created as a flagship store designed to attract customers even from far away, featuring larger sales floors, a wider variety of products, spacious parking lots, and numerous service pits compared to regular Autobacs stores.
In company documents from that time, the phrase "excitement and thrills" appeared repeatedly.
This was not merely an advertising expression.
It described the very store design of Super Autobacs.
Super Autobacs Kyoto Wonder City, which opened in 2003, was a large-scale store with four floors and a total sales area of 875 tsubo.
Inside the store, there were displays of new cars and custom cars, tire and wheel towers on the walls, 25 service pits, and a drive-through oil change facility.
Furthermore, it even included a Seattle's Best Coffee, a hair salon, light dining options, imported goods, a CD section, and a kids' space.
Putting cafes and general goods sections into an auto parts store.
Today, this looks like a facility meant to make waiting times for service more comfortable.
The goal at the time must have been a bit larger than that.
It was so that family members who were not knowledgeable about cars could also go along.
It was so that people could stay even if they didn't have any service scheduled.
It was so that while walking around the store for a long time, they would encounter products they hadn't planned on buying.
The cafes and events were not facilities meant to earn significant profit on their own, but rather mechanisms to increase the total time spent in the store and the opportunities for purchase.
What the Super Autobacs of the past was selling was not just car supplies.
It was selling the very time spent customizing a car to one's own specifications.
Custom parts and the knowledge of store staff used to be a form of media
From the 1990s to the early 2000s, there was plenty of room left for users to modify their cars after purchasing them.
Installing a car navigation system.
Replacing the head unit.
Adding speakers or a woofer.
Changing the wheels.
Lowering the ride height.
Replacing the muffler.
Changing the steering wheel or seats.
Installing additional gauges or aero parts.
Even after buying a new car, it was possible to sell high-ticket items and installation labor.
Moreover, this was not an era where you could easily find installation examples on YouTube or social media as you can today.
Information about new products was mainly obtained from car magazines, manufacturer catalogs, shop demo cars, and conversations with store staff.
If you went to Super Autobacs, you could actually pick up products you had learned about in magazines or at the Tokyo Auto Salon.
At manufacturer events, you could hear explanations directly from the developers.
Through demo cars, you could check how they looked and sounded once installed.
After purchase, you could have them installed right there in the store's pit.
The store gathered not just products, but information as well.
I think the Super Autobacs of the past was, at the same time as being a retail store, a medium that combined magazines, exhibitions, custom shops, and installation workshops.
That is why there was a reason to go even if you didn't have any specific business there.
The time when Super Autobacs began was the peak of the market
The irony is that 1997, when Super Autobacs started, was the peak of the domestic car supplies market.
According to Autobacs Seven's materials, the estimated retail sales of domestic car supplies shrank from 3.0565 trillion yen in the fiscal year ending March 1997 to approximately 1.767 trillion yen in the fiscal year ending March 2014.
That is a calculation of a decrease of more than 40% over 17 years.
The company cites as the main reasons the standardization of accessories by automakers, the decline in unit prices of car electronics products such as car navigation systems, the lengthening of replacement cycles due to improved parts performance, the decrease in sports cars, and the diversification of hobbies among the younger generation.
Super Autobacs was born as a result of the expansion of the car supplies market.
However, in the process of expanding stores, the market itself turned to contraction.
Large stores have heavy fixed costs such as sales floor space, parking lots, pits, personnel, electricity bills, and inventory.
Custom parts, in particular, have different compatible products depending on the car model, type, and year.
The more car models you support, the more inventory increases, but the number of times a single product sells is limited.
When the market is growing, an overwhelming product lineup becomes a draw for customers.
When the market shrinks, that same lineup turns into an inventory burden.
The spaciousness and number of products that were the strengths of the old Super Autobacs became difficult to maintain as the times changed.
The large markets of car navigation and car audio have disappeared
The change in the car navigation and car audio market had a particularly large impact on car supplies stores.
Previously, it was common to install aftermarket navigation systems, audio, speakers, amplifiers, and backup cameras after purchasing a car.
You could sell not only the main unit but also wiring, installation kits, peripheral equipment, and labor costs.
For car supplies stores, this was a field where it was easy to generate sales and profits.
In current cars, the display is integrated with the air conditioner, vehicle settings, safety equipment, and all-around cameras.
The number of car models where you can remove a standard-sized audio unit and replace it with a product of your choice has decreased.
Navigation systems can be replaced by smartphones.
Music has also shifted from CDs and MDs to streaming services.
It is not just that there are fewer products that sell.
The very reason for visiting, which was to go to an auto parts store to try out new navigation systems or audio equipment, has disappeared.
Rather than Super Autobacs becoming weaker, the high-unit-price market that supported Super Autobacs has been partially absorbed by factory-installed car equipment and smartphones.
Did customization end due to regulations?
Stricter vehicle inspections and regulations are also cited as reasons why car customization culture has weakened.
Certainly, regulations have had an impact.
For vehicles manufactured after April 2010, replacement mufflers are required to comply with acceleration noise standards, and a pre-certification system using performance confirmation labels has been introduced.
Major auto parts stores prioritize legal compliance and corporate image, making it difficult for them to handle products where it is unclear if they meet safety standards, or extreme modifications.
However, it is not just regulations that ended the customization culture.
Wheels, mufflers, adjustable suspension, aero parts, and seats that comply with safety standards are still sold today.
The impact of the increasing complexity of cars themselves is greater than that of the regulations.
Modern cars are equipped with automatic braking, lane-keeping assist, cameras, radar, and sensors.
If you replace parts around the bumper or windshield, sensor adjustment or aiming may be required.
Changing the suspension is also not just a matter of lowering the ride height and being done with it.
It is necessary to make decisions that include electronic controls, safety equipment, diagnostic tools, manufacturer warranties, and insurance.
In the past, there were many cases where the work was completed just by replacing the parts.
Nowadays, you cannot handle it without understanding the control of the entire car.
I think it is more accurate to say that customization has not been banned, but rather the scope of customization that major mass retailers can handle with low risk has narrowed.
The hub for trends has shifted from physical stores to smartphones
In the past, there was a flow where you would learn about products in magazines and then check the actual items at Super Autobacs.
Nowadays, you can find installation examples on YouTube, Instagram, X, Minkara, CARTUNE, manufacturer websites, and e-commerce malls.
You can research exhaust sounds, installation procedures, failure examples, and impressions after long-term use without ever going to a store.
You can also compare prices on the spot.
Even if a specialized product for a specific car model only sells one unit a month in a local area, an online shop can aggregate orders from across the country.
If you tried to replicate that same product selection in a physical store, you would have to stock a massive amount of low-turnover items.
It is not that all car enthusiasts have disappeared.
Information gathering, shopping, and interaction have dispersed outside of the stores.
Information that could only be found by going to Super Autobacs has moved to smartphones.
This is a major reason why the excitement of the stores has weakened.
Autobacs shifting toward maintenance is correct from a management perspective
As the market shrinks, Autobacs has expanded its business beyond just selling car supplies to include tires, vehicle inspections, maintenance, and car sales.
This decision itself is not wrong.
Car navigation systems and custom parts are influenced by trends and new car sales.
On the other hand, tires, oil, batteries, vehicle inspections, and repairs generate recurring demand as long as you own a car.
If you manage service history, you can lead customers to their next oil change, tire replacement, inspection, or vehicle inspection.
If you want to create stable revenue, maintenance is better than selling supplies.
The problem is that just shifting toward maintenance does not create a unique strength for Autobacs.
Yellow Hat also handles tires, oil, batteries, vehicle inspections, coatings, and labor.
James also has the parts supply capability and sense of security of the Toyota Group.
If they are just convenient and reliable maintenance shops, the differences between the three companies become small.
The old Autobacs was a different place from Yellow Hat or James.
If you strengthen the maintenance business but end up narrowing that gap as well, you just end up as a large-scale car supply store.
A PIT is not a revival of the past, but a redesign for the modern era.
In 2018, Super Autobacs Tokyo Bay Shinonome was renovated into A PIT AUTOBACS SHINONOME.
TSUTAYA BOOKSTORE and Starbucks were added to the store, transforming it into a shop that combines cars, travel, outdoor activities, family, and garage life.
On the other hand, they have not completely abandoned customization.
They established HKS GATE TOKYO BAY, concentrating products and specialized staff on high-demand vehicle models such as the 86, BRZ, Jimny, and Subaru cars.
They display parts under development and demo cars, and also hold consultation sessions by manufacturer representatives.
This is not a strategy to revive the old Super Autobacs as it was.
Instead of lining up a massive amount of products in every direction, they use maintenance for general customers and lifestyle sales floors as a foundation, while keeping high-demand custom fields as specialized sections.
Considering the current market size and inventory efficiency, this is more realistic.
However, as an investor, I cannot evaluate it just because the store has become stylish.
Did the event attendees purchase products?
Did it lead to high-unit-price installation work?
Were they able to acquire subsequent vehicle inspections and maintenance?
It is important whether the enthusiasm of car lovers is being converted into continuous profit.
In terms of numbers, Yellow Hat is stronger.
For the fiscal year ending March 2026, Autobacs Seven had sales of 280 billion yen and an operating profit of 13.7 billion yen.
The operating profit margin is 4.9%, and the ROE is 6.2%.
For the fiscal year ending March 2027, the company plans for sales of 300 billion yen, operating profit of 15 billion yen, and an ROE of 7.0%.
On the other hand, Yellow Hat's fiscal year ending March 2026 saw sales of 171.2 billion yen and operating profit of 15 billion yen.
The operating profit margin is approximately 8.8%.
In terms of sales scale, Autobacs is larger.
Even so, Yellow Hat surpasses it in operating profit.
Because their business structures differ, one cannot simply determine superiority based on profit margin alone.
However, it is certain that Yellow Hat has a clearer profit structure as a maintenance company centered on tires, consumables, labor costs, and vehicle inspections.
Even if it doesn't become a hub for car culture, it captures recurring demand within the living sphere and efficiently retains profit.
In terms of completeness as an investment target, I rate Yellow Hat higher.
Dividends as a reference only
As of July 14, 2026, the projected dividend yield is approximately 4.0% for Autobacs Seven and approximately 3.7% for Yellow Hat.
While Autobacs is slightly higher in yield alone, Yellow Hat has a higher profit margin and a trend of increasing dividends.
This article is not intended to decide whether to buy at the current stock price.
I will treat the dividend yield only as a reference and make judgments based primarily on business structure and profitability.
Is it a good company?
Yellow Hat has a clear business focus.
It centers on demand that arises as long as one owns a car, such as tires, oil, batteries, maintenance, and vehicle inspections.
The annual dividend forecast for the fiscal year ending March 2027 is 68 yen.
This is an increase from the 62 yen in the fiscal year ending March 2026, and the medium-term management plan targets a dividend payout ratio of 45%.
Meanwhile, the annual dividend forecast for Autobacs is 60 yen.
While it is a stable dividend, it has basically remained at 60 yen since the fiscal year ending March 2022.
The stability of the dividend is commendable.
However, it is difficult to say that the dividend is growing in line with profit growth.
If comparing as a high-dividend stock, Yellow Hat is superior in terms of business profitability, dividend growth, and the clarity of its business structure.
Autobacs possesses a nationwide store network, brand recognition, pits, mechanics, and relationships with parts manufacturers.
However, those assets are not sufficiently reflected in its profit margins or ROE.
It is a company that holds good assets.
At this point, I do not judge it to be a company that is efficiently converting its assets into profits.
What to track as an investor
What to focus on with Autobacs is not the size of its sales.
The operating profit margin of the domestic Autobacs business.
Growth in revenue from vehicle inspections, maintenance, and labor fees.
Profitability of the acquired car sales, dealership, and used car businesses.
Whether A PIT and custom specialty stores are leading to continued usage.
These are the four points.
If you buy companies through M&A, consolidated sales will increase.
If you have only gathered low-margin businesses, corporate value will not rise.
A PIT also cannot be judged solely by the number of visitors or buzz on social media.
Only when it leads to the sale of high-unit-price products, installation labor fees, vehicle inspections, and subsequent maintenance does the brand turn into profit.
There is no need to recreate the Super Autobacs of the past.
Can the strengths of the past—expertise, events, information dissemination, and community—be connected to the current maintenance business?
This is the critical point for Autobacs.
Summary
The feeling that the Super Autobacs of the past was amazing is not just nostalgia.
The stores of that time were hubs of car culture, combining auto parts stores, custom shops, exhibitions, magazines, event venues, and dining facilities into one.
You wanted to go there even if you didn't have any errands.
While walking around the store, you would find something you wanted to install next.
That experience led to product sales and installation labor fees.
Times have changed.
The car supplies market has shrunk, car navigation and audio systems have shifted to factory-installed equipment, and product information has moved to the internet.
Due to the electronic control of cars, the equipment and knowledge required for customization and maintenance have also increased.
It was the right decision for Autobacs to shift its focus to tires, vehicle inspections, maintenance, and car sales.
However, if they only shift toward being a maintenance shop, the gap with Yellow Hat, which has higher profit margins, will not be closed.
Autobacs has the brand, store network, specialized personnel, and points of contact with car enthusiasts that it has built up over the years.
Despite having those assets, its operating profit margin is around 5%, and its ROE is in the 6% range.
I judge this strictly.
At this point, I rate Yellow Hat higher in terms of business quality and dividend growth.
Autobacs is not a company to be evaluated solely on name recognition or nostalgia.
It is a company to watch to see if it can create reasons for car enthusiasts to gather again while securing stable revenue through maintenance, and whether it can convert that enthusiasm into labor fees, continued usage, and profit margins.
We can judge that Autobacs has made a comeback not when the stores become flashy like they used to be.
It is when car enthusiasts gather there once again, and the results are reflected in the profit margins and ROE.
