FEATURE/Pep Boys Looks to Next 80 Years as `Do-it-for-me'' Decades
Asset Caption: Pep Boys , which this year celebrates 80 years as the nation's leading full service automotive aftermarket retail and service chain, sees the future as the "do-if-for-me decades." As the only company in the industry capable of servicing all four segments of the automotive aftermarket - do-it-yourself (DIY), do-it-for-me (DIFM), buy-for-resale and replacement tires - Pep Boys expects the recent growth in the repair and maintenance service labor category (nearly $112 billion annually) to continue to outpace the growth in DIY (which amounted to $36 billion last year) as vehicles continue to increase in complexity and consumers' "time" continues to grow in importance.
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PHILADELPHIA--(BUSINESS WIRE FEATURES)--Sept. 6, 2001--
Nation's Leading Automotive Aftermarket Retail and Service Chain Sees
Service Labor Growing as Time Becomes More Important to Consumers
Pep Boys , which this year celebrates 80 years as the nation's leading full service automotive aftermarket retail and service chain, sees the future as the "do-it-for-me decades."
As the only company in the industry capable of servicing all four segments of the automotive aftermarket -- do-it-yourself (DIY), do-it-for-me (DIFM), buy-for-resale and replacement tires -- Pep Boys expects the recent growth in the repair and maintenance service labor category (nearly $112 billion annually) to continue to outpace the growth in DIY (which amounted to $36 billion last year) as vehicles continue to increase in complexity and consumers' "time" continues to grow in importance.
"Consumers, now more than ever, are concerned about two things -- safety and the ability to get on with their busy lives," said Mitchell G. Leibovitz, chairman, CEO and president of Pep Boys. "That's why we see this do-it-for-me trend continuing. By ensuring that our customers can continue to receive consistent service and depend on the trust that we have established with them over the past 80 years, we believe that Pep Boys is the best positioned retailer in the automotive aftermarket to capture the lion's share of this growing service business."
In addition to its automotive service component, Pep Boys' broad in-stock inventory and thorough understanding of the needs of the professional installer make the company a natural to benefit from the product side of the DIFM segment of the aftermarket.
Despite the challenges that face the automotive aftermarket and the downturn in consumer confidence currently impacting most of the retail sector, Pep Boys has shown consistent improvement in its financial performance this year. With expenses under control and both merchandise and service margins on the rise, Pep Boys has been able to significantly improve its bottom line (earnings per share for its first six months were $.42 -- up 100% over the same period last year, and net earnings for the six months were $21,627,000 versus $10,823,000 in 2000).
That is good news for consumers because the company has been able to focus its energy on improving product offerings, merchandising displays, signage and customer service -- thus renewing the promise set forth 80 years ago by founders Emanuel "Manny" Rosenfeld, Maurice "Moe" Strauss and W. Graham "Jack" Jackson.
"Pep Boys has always been the place to get the right product -- be that parts, accessories, tires or service -- at the right price," added Leibovitz. "Since our stores are larger than our non-service competitors, Pep Boys has more room to carry and display items like truck and SUV accessories. Our unique Supercenter format provides customers with a broad product and service offering and a convenient, one-stop shopping experience."
About Pep Boys
Pep Boys, which is celebrating its 80th anniversary this year, operates 629 stores and over 6,500 service bays in 36 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. Customers can find the nearest location by calling 1-800-PEP-BOYS or by visiting www.pepboys.com.
Note: Certain statements made herein, including those discussing management's expectations for future periods, are forward-looking and involve risks and uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements due to factors beyond the control of the Company, including the strength of the national and regional economies and retail and commercial consumers' ability to spend, the health of the various sectors of the market that the Company serves, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, location and number of competitors' stores and product and labor costs. Further factors that might cause such a difference include, but are not limited to, the factors described in the Company's filings with the Securities and Exchange Commission.
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