Valvoline (VVV) Goldman Sachs 31st Annual Global Retailing Conference summary

Consumer behavior and market resilience

• Preventative maintenance is considered non-discretionary, with customers maintaining service intervals despite economic pressures.

• Customers are keeping vehicles longer, increasing demand for maintenance and added services.

• Education on OEM recommendations and value drives higher penetration of additional services.

• Core customers are convenience seekers, typically with vehicles out of warranty and slightly higher income.

• Vehicle maintenance is prioritized as essential for household functioning and income generation.

Competitive landscape and growth strategy

• The oil change market is highly fragmented, with only 20-25% served by quick lube channels.

• Valvoline leads the quick lube segment, emphasizing convenience and consistent high-quality service.

• New store openings draw customers from other channels due to speed and transparency.

• Consistent customer experience supports expansion regardless of competitive intensity.

Non-oil change revenue and service penetration

• Non-oil change revenue accounts for about 25% of average ticket, with significant variation by store.

• Visual inspections have the highest service penetration, aided by customer education.

• Experienced teams drive higher non-oil change revenue through faster service and better communication.

• High-margin services are prioritized, with minimal incremental labor costs.

• R&D is piloting new services, especially for hybrid vehicles, focusing on repeatability and quality.