Pep Boys 2007 Annual Report Download - page 52

include general, full range, discount or traditional department stores which carry automotive parts and
accessories and/or have automotive service centers, as well as specialized automotive retailers.
Generally, the specialized automotive retailers focus on either the ‘‘do-it-yourself’’ or ‘‘do-it-for-me’’
areas of the business. The Company believes that its operation in both the ‘‘do-it-yourself’’ and
‘‘do-it-for-me’’ areas of the business positively differentiates it from most of its competitors. However,
certain competitors are larger in terms of sales volume, store size, and/or number of stores. Therefore,
these competitors have access to greater capital and management resources and have been operating
longer or have more stores in particular geographic areas than the Company. The principal methods of
competition in our industry include store location, availability of product, customer service and product
offerings, quality and price.
The Company believes that the warranty policies in connection with the higher priced items it sells,
such as tires, batteries, brake linings and other major automotive parts and accessories, are comparable
or superior to those of its competitors.
REGULATION
The Company is subject to various federal, state and local laws and governmental regulations
relating to the operation of its business, including those governing the handling, storage and disposal of
hazardous substances contained in the products it sells and uses in its service bays, the recycling of
batteries, tires and used lubricants, and the ownership and operation of real property.
EMPLOYEES
At February 2, 2008, the Company employed 18,564 persons as follows:
Description Full-time % Part-time % Total %
Retail .......................... 3,852 31.9 4,898 75.4 8,750 47.1
Service Center .................... 6,826 56.6 1,523 23.5 8,349 45.0
STORE TOTAL .................. 10,678 88.5 6,421 98.9 17,099 92.1
Warehouses ...................... 623 5.1 64 1.0 687 3.7
Offices ......................... 769 6.4 9 0.1 778 4.2
TOTAL EMPLOYEES .............. 12,070 100.0 6,494 100.0 18,564 100.0
The Company had no union employees as of February 2, 2008. At February 3, 2007, the Company
employed approximately 13,340 full-time and 5,454 part-time employees.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained herein, including in ‘‘Item 1. Business’’ and ‘‘Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations’’, constitute ‘‘forward-looking
statements’’ within the meaning of The Private Securities Litigation Reform Act of 1995. The words
‘‘guidance,’’ ‘‘expects,’’ ‘‘anticipates,’’ ‘‘estimates,’’ ‘‘forecasts’’ and similar expressions are intended to
identify these forward-looking statements. Forward-looking statements include management’s
expectations regarding implementation of its long-term strategic plan, future financial performance,
automotive aftermarket trends, levels of competition, business development activities, future capital
expenditures, financing sources and availability and the effects of regulation and litigation. Although we
believe that the expectations reflected in these forward-looking statements are based on reasonable
assumptions, we can give no assurance that our expectations will be achieved. Our actual results may
differ materially from the results discussed in the forward-looking statements due to factors beyond our
control, including the strength of the national and regional economies, retail and commercial
consumers’ ability to spend, the health of the various sectors of the automotive aftermarket, the
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10-K