CarMax focused on cost-cutting, execution

RICHMOND, Va. — CarMax Chief Executive Tom Folliard says the auto retailer is focused on eliminating waste and improving execution to weather the weak automotive market and better position it for future growth.

Folliard spoke at the company’s annual shareholder meeting in Richmond on Tuesday.

Richmond-based CarMax has lowered reconditioning costs and improved margins to help offset declines in traffic and sales.

The operator of 100 stores saw its sales tumble last year as a result of the industrywide plunge in consumer demand for vehicles. In addition, increasingly tight credit markets made it tough for many consumers who did want to buy vehicles to get the financing they needed.

Shareholders on Tuesday re-elected four board members and approved changes to stock incentive and employee share purchase plans.