Pep Boys 2008 Annual Report Download - page 65

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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 2008, which ended January 31, 2009, was comprised of
52 weeks; fiscal year 2007, which ended February 2, 2008, was comprised of 52 weeks; and fiscal year
2006, which ended February 3, 2007, was comprised of 53 weeks.
The Company is a leading automotive service and retail chain. The Company operates in one
industry, the automotive aftermarket. The Company is engaged principally in automotive repair and
maintenance and the sale of automotive tires, parts and accessories. The Company’s primary operating
unit is its SUPERCENTER format. As of January 31, 2009, the Company operated 562 stores
consisting of 552 SUPERCENTERS and 1 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-for-me’’ DIFM (service labor, installed merchandise and
tires) and ‘‘do-it-yourself’’ DIY (retail) customers with the highest quality service offerings and
merchandise. In most of our stores we also have a commercial sales program that provides commercial
credit and prompt delivery of tires, parts and other products to local, regional and national repair
garages and dealers.
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
January 31, February 2, February 3,
2009 2008 2007
Parts and Accessories ........................... 65.1% 66.6% 68.5%
Tires ....................................... 16.3 15.2 14.1
Total Merchandise Sales ......................... 81.4 81.8 82.6
Service Labor ................................. 18.6 18.2 17.4
Total Revenues ................................ 100.0% 100.0% 100.0%
1