Pep Boys 2006 Annual Report Download - page 39

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1
PART I
ITEM 1 BUSINESS
GENERAL
The Pep Boys—Manny, Moe & Jack and subsidiaries (the “Company”) is a leading automotive retail
and service chain. The Company operates in one industry, the automotive aftermarket. The Company is
engaged principally in the retail sale of automotive parts, tires and accessories, automotive repairs and
maintenance and the installation of parts. The Company’s primary operating unit is its SUPERCENTER
format. As of February 3, 2007, the Company operated 593 stores consisting of 582 SUPERCENTERS and
one SERVICE & TIRE CENTER, having an aggregate of 6,162 service bays, as well as 10 non-
service/non-tire format PEP BOYS EXPRESS stores. The Company operates approximately 12,167,000
gross square feet of retail space, including service bays. The SUPERCENTERS average approximately
20,700 square feet and the 10 PEP BOYS EXPRESS stores average approximately 9,700 square feet. The
Company believes that its unique SUPERCENTER format offers the broadest capabilities in the industry
and positions the Company to gain market share and increase its profitability by serving “do-it-yourself”
(retail) and “do-it-for-me” (service labor, installed merchandise and tires) customers with the highest
quality merchandise and service offerings.
The following table sets forth the percentage of total revenues from continuing operations contributed
by each class of similar products or services for the Company and should be read in conjunction with the
Consolidated Financial Statements and Notes thereto included elsewhere herein:
Year ended
February 3,
2007
January 28,
2006
January 29,
2005
PartsandAccessories............................... 68.5% 69.3% 67.8%
Tires.............................................. 14.1 13.6 14.2
TotalMerchandiseSales............................. 82.6 82.9 82.0
ServiceLabor...................................... 17.4 17.1 18.0
Total Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0% 100.0%