Company: KMX
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001170010-25-000024
Chunk: 58

Company: CARMAX INC
Filing Date: 2025-04-11
Form: 10-K
Item: Item 7
Chunk 58
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 omni sales to grow over time, our goal is to provide the best experience whether in-store, online or a combination of the two.  As a result, online, omni and in-person sales can vary from quarter to quarter depending on consumer preferences and how they choose to interact with us.  We believe consumers in the used car industry will increasingly prefer to have the ability to shop and transact digitally.  Approximately 80% of our customers leveraged some or all of our digital capabilities to complete their transactions during the current fiscal year.

Our diversified business model, combined with our exceptional associates, stores, technology and digital capabilities seamlessly tied together, is a key differentiator that strengthens our competitive advantage and we believe will be increasingly important to win customers going forward.  We expect the impact of our omni-channel capabilities will continue to grow as consumers demand a more personalized car-buying experience.  The associate and customer facing tools we launched during fiscal 2025 are supporting our results and enable us to provide the most customer centric car buying and selling experience.  Some examples of the steps we took to further differentiate our offering and drive incremental operational efficiencies during fiscal 2025 include:

•For retail, we rolled out several new systems including order processing in our stores, customer accounts online, AI-driven knowledge management in our Customer Experience Centers (“CECs”) and EV research and shopping tools on the Edmunds and CarMax websites.  These systems enhance consumers’ shopping experiences while also supporting conversion and enabling our associates to be more efficient.

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•Our digital tools and enhancements have made it easier for customers to self-progress in their shopping journey.  Skye, our AI-powered virtual assistant, is now able to independently answer over half of the questions our customers ask it, reflecting a more than 20% year-over-year improvement.  Additionally, the rate of fully self-progressed online sales grew by 25% in fiscal 2025.  Fully self-progressed online sales, which are a subset of our online retail sales, are completed without the help of a CEC or store associate.

•For supply, we enhanced our industry-leading consumer and dealer-facing online appraisal experiences and are now able to give digital offers to approximately 99% of the customers who visit carmax.com for an appraisal.  We also made MaxOffer even easier to use, which has attracted more dealers to the offering and has driven record sourcing volume each quarter.

•For finance, we began testing of our new credit scoring models and the corresponding strategies across the full