Pep Boys 2007 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2007 Pep Boys annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

PART I
ITEM 1 BUSINESS
GENERAL
The Pep Boys—Manny, Moe & Jack and subsidiaries (‘‘the Company’’) fiscal year ends on the
Saturday nearest to January 31. Fiscal year 2007, which ended February 2, 2008, was comprised of
52 weeks, fiscal year 2006, which ended February 3, 2007, was comprised of 53 weeks and fiscal year
2005, which ended January 28, 2006, was comprised of 52 weeks.
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 2, 2008,
the Company operated 562 stores consisting of 552 SUPERCENTERS and one SERVICE & TIRE
CENTER, having an aggregate of 5,845 service bays, as well as 9 non-service/non-tire format PEP
BOYS EXPRESS stores. The Company operates approximately 11,514,000 gross square feet of retail
space, including service bays. The SUPERCENTERS average approximately 20,700 square feet and the
PEP BOYS EXPRESS stores average approximately 9,500 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 2, February 3, January 28,
2008 2007 2006
Parts and Accessories ........................... 66.6% 68.5% 69.3%
Tires ....................................... 15.2 14.1 13.6
Total Merchandise Sales ......................... 81.8 82.6 82.9
Service Labor ................................. 18.2 17.4 17.1
Total Revenues ................................ 100.0% 100.0% 100.0%
1
10-K