In a Friday conference call with analysts, Nash also said the company is encouraged with early results from what it call its “full omnichannel experience”, which the company is testing in three markets, including Atlanta.
Omnichannel is a program to provide consumers a seamless buying experience as they move from computer to mobile device to showroom shopping. The model uses online pricing estimates and appraisals for customers, vehicle home deliveries and expedited pickups at stores.
Nash said that while omnichannel sales in Atlanta have been less profitable per unit than traditional sales, the company expects improvements.
“After seeing the results in Atlanta, we are more confident that this is the right direction,” Nash said. “We think this new initiative could be more efficient than our current model.”
Nash added that the company was also encouraged by the high take rate for home delivery sales, though home delivery still represents a very small percentage of overall sales.
During the fourth quarter, CarMax opened five stores. Three of them — in Buffalo, N.Y., Montgomery, Ala., and New Orleans — represented new markets for the chain. Two others in Orlando and Portland, Ore., are existing market expansions.