Pep Boys 2009 Annual Report Download - page 3

THE PEP BOYS −
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− MANNY, MOE & JACK
3111 West Allegheny Avenue
Philadelphia, Pennsylvania 19132
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LETTER TO OUR SHAREHOLDERS
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2009 was a rewarding year for The Pep Boys – Manny, Moe & Jack, thanks to our associates and their passionate
commitment to our customers. We started the year by making a “Back in Black” commitment to return to
profitability, and we met that commitment by making more money in 2009 than we had in the previous twelve years
combined. We have also started to grow again, adding 25 new locations in 2009.
VISION AND STRATEGIES
Our vision is to be The Automotive Solutions Provider of Choice for the Value Oriented Customer, and we have
four strategies to achieve this vision:
Earn the TRUST of our Customers every day. We do this by delivering a customer experience that is based
on Speed, Expertise, Respect and Value.
The customer experience starts with our associates. We have focused on hiring, training and development, and
converting compensation to performance-based plans. Our associate retention continues to improve, as does our
associates’ level of pride in their workplace and their company. We will continue to focus on building the
expertise of our advisors, mechanics and technicians, and providing appropriate incentives to put Customers
First.
Customers First is our commitment, and we have made great strides with better looking and easier to shop stores,
more consistent execution and an improved customer experience. As a result, our customer service scores
continue to improve. Our rallying cry for 2010 is to “Get to Great” through even more consistent execution. It
starts with our associates, but process is also important. That is why we continue to simplify and streamline our
operations, so that our associates are in a better position to put Customers First.
The changes we have made in our marketing messaging and media are also resonating with our customers, and
we are spending less but touching more customers. Our Rewards program is a one of kind in the industry, in that
it benefits customers whether they choose to do it themselves or have us do it for them. We now have over five
million members, which is helping to drive customer count increases and repeat business through discounted
towing, free services and rewards points for purchases.
The sum of these initiatives and those below positions us to produce sustainable sales increases going forward.
Lead with our Service business and grow through our Service & Tire Centers. We do this by being a full
service - tire, maintenance and repair - shop that DOES EVERYTHING. FOR LESS.
We have full service capability in our bays. We have ASE certified technicians in every store. We invest
significantly in training and equipment. Our most recent service additions this year were advanced diagnostic
equipment to service today’s more complex vehicles, training and equipment to service hybrid vehicles and 29
minute oil changes to serve time-starved customers.
When customers rely on us every day to keep their cars and trucks running properly, we do it for less because our
size and business model allow us to buy quality parts at lower prices and pass those savings onto our customers.
We opened 25 new stores in 2009 – 24 Service & Tire Centers and one smaller prototype Supercenter. Our plans
call for 40 more new locations in 2010, followed by 80 in 2011. This growth plan allows us to leverage our
Supercenters - inventory, delivery operations and marketing - while improving our market density. The typical