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June 2006

News & Media

Car Wash Services Expand to Attract Consumers 
June 20, 2006 

NEW YORK – Retailers are increasingly turning to new car wash services, promising shorter cleaning times and providing plush waiting rooms to peak customer interest and drive store traffic, reports The Wall Street Journal.

“Facing growing competition from the likes of Home Depot Inc. and Sam's Club, car washes around the country are launching new services aimed at grabbing customers' interest,” writes the newspaper, adding that some retailers are “pitching Netflix-style discount plans,” as well as dog washing services.

Thanks to technology innovations in car wash services, including more powerful drying systems and automated payment options, retailers have been able to cut labor costs, attract new customers and make the car wash business “more profitable.”

Earlier this year, Home Depot opened two convenience stores featuring car washes in the Nashville area. Sam’s club has car washes at nine stores and Wal-Mart has five Murphy Oil Corp. car washes at five stores.

According to the International Carwash Association, about 46 percent of car washes are automated services at gas stations, a figure that is up from about 40 percent six years ago.

“Many big-box retailers and gas stations are using the latest technologies to offer a cheap, no-frills car wash, at prices as low as $4 to $6,” writes the Journal.

A customer from Woodland Hills, Calif., switched from a full-service car wash to services offered at a local gas station. “It was not only less expensive, it was more convenient,” he said.

Meanwhile, traditional, full-service car washes are adding new incentives to lure back customers who have also switched to gas station car washes.

Turtle Wax Inc., which operates 20 full-service car washes in the Midwest, cut the duration of its basic $12 wash from 15 minutes to 10 minutes or less by increasing “tunnel speed” by about 10 percent. The company also uses two employees per vehicle to speed up interior tasks and drying.

Turtle Wax added wireless Internet service to its waiting rooms and is planning to roll out additional features such as personalized greetings for returning customers (through license plate recognition), aromatherapy air freshners and Internet kiosks inside the waiting areas.

And don’t forget about the Fido. Last year, Car Wash City in Central Illinois opened a dog wash service that cost as little as $2 per pet.

The car wash business is not just for retailers, notes the newspaper. Besides big businesses and gas stations, more individual investors are jumping on the bandwagon. However, “the pool of potential car wash customers may actually be shrinking for now” thanks to high gasoline prices putting a squeeze on consumer spending.