Pep Boys 2009 Annual Report Download - page 70
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Please find page 70 of the 2009 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.-
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• mass merchandisers and wholesale clubs that sell automotive products and select non-automotive
merchandise that appeals to automotive ‘‘Do-It-Yourself’’ customers, such as generators, power
tools and canopies.
Commercial
• mass merchandisers, wholesalers and jobbers (some of which are associated with national parts
distributors or associations).
Do-It-For-Me
Service
• regional and local full service automotive repair shops;
• automobile dealers that provide repair and maintenance services;
• national and regional (including franchised) tire retailers that provide additional automotive
repair and maintenance services; and
• national and regional (including franchised) specialized automotive (such as oil change, brake
and transmission) repair facilities that provide additional automotive repair and maintenance
services.
Tires
• national and regional (including franchised) tire retailers; and
• mass merchandisers and wholesale clubs that sell tires.
A number of our competitors have more financial resources, are more geographically diverse or
have better name recognition than we do, which might place us at a competitive disadvantage to those
competitors. Because we seek to offer competitive prices, if our competitors reduce their prices we may
also be forced to reduce our prices, which could cause a material decline in our revenues and earnings.
With respect to the service labor category, the majority of consumers are unfamiliar with their
vehicle’s mechanical operation and, as a result, often select a service provider based on trust. Potential
occurrences of negative publicity associated with the Pep Boys brand, the products we sell or
installation or repairs performed in our service bays, whether or not factually accurate, could cause
consumers to lose confidence in our products and services in the short or long term, and cause them to
choose our competitors for their automotive service needs.
Vehicle miles driven may decrease, resulting in a decline of our revenues and negatively affecting our
results of operations.
Our industry depends on the number of vehicle miles driven. Factors that may cause the number
of vehicle miles and our revenues and our results of operations to decrease include:
• the weather—as vehicle maintenance may be deferred during periods of inclement weather;
• the economy—as during periods of poor economic conditions, customers may defer vehicle
maintenance or repair, and during periods of good economic conditions, consumers may opt to
purchase new vehicles rather than service the vehicles they currently own and replace worn or
damaged parts;
• gas prices—as increases in gas prices may deter consumers from using their vehicles; and
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