AutoZone planning Downtown Memphis expansion with 130 jobs averaging $80K salary

Desiree Stennett
Memphis Commercial Appeal
An AutoZone expansion is expected to bring 130 high-paying jobs to Downtown Memphis.

AutoZone has plans to expand its Downtown Memphis footprint by adding 130 new jobs within the next five years, an application for tax incentives shows.

The Economic Development Growth Engine (EDGE) for Memphis and Shelby County approved a 15-year tax break to help make the expansion more affordable at a Wednesday board meeting.

"AutoZone is growing," John Lawrence, EDGE senior economic development specialist, told the board. "They're launching new strategies to strengthen their position as the national leader in the auto parts business and in customer service. This is an opportunity to capture the growth here in Memphis. This is a chance to support one of our region's top Fortune 500 companies. This is also a chance to create new high-paying jobs."

The payment-in-lieu-of-taxes would save the company about 75% of its property tax obligation over those 15 years.

According to EDGE documents, AutoZone expects the expansion to cost more than $145 million. The tax break would save the company about $11.2 million.

Of the 130 new workers the company promises to hire in exchange for the tax break, 105 of them will be office workers making an average of $76,500 annually and 25 managers making an average of $96,985 annually. Across all the new positions, the average pay tops $80,000.

AutoZone was started in Memphis in 1979. Its current headquarters is at 123 S. Front St. in Downtown Memphis. It plans to expand into currently vacant buildings at 104-110 S. Front St.

"The Company is limited in its ability to expand its existing building at 123 South Front Street and will have to make substantial investment in renovating the outdated property at 104-110 South Front Street," AutoZone officials wrote in a PILOT application.

That strip of Front Street is poised for a renaissance. Not only is AutoZone planning to fill vacant buildings, across the street Memphis developer Billy Orgel was approved for a $650,406 grant to save two buildings at 99 S. Front St. and 105 S. Front St. in January.

"This expansion will allow the company to provide faster fulfillment of part requests and aid mechanics with on-demand access to comprehensive repair information," EDGE documents said. "The location for this activity will house servers, databases and related computer software and hardware, in addition to engineers, software developers and other employees."

AutoZone has more than 6,000 stores and 90,000 employees worldwide.

Tom Kliman, AutoZone's vice president of global tax, said the expansion was influenced by the design of internet-giant Google's headquarters that was built to promote technology and innovation.

"The role of technology in the retail space, as you all know, is increasing and always changing and AutoZone is committed to investing a significant amount of capital to meet the needs of its customers," Kliman said.

Desiree Stennett covers economic development and business at The Commercial Appeal. She can be reached at desiree.stennett@commercialappeal.com, 901-529-2738 or on Twitter: @desi_stennett.