Pep Boys 2013 Annual Report Download - page 73

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PART I
ITEM 1 BUSINESS
GENERAL
The Pep Boys—Manny, Moe & Jack and subsidiaries (the ‘‘Company’’) has been the best place to
shop and care for your car since it began operations in 1921. Approximately 19,000 associates are
focused on delivering the best customer service in the automotive aftermarket to our customers across
our nearly 800 locations located throughout the United States and Puerto Rico. Pep Boys satisfies all of
a customer’s automotive needs through our unique offering of service, tires, parts and accessories.
Our stores are organized into a hub and spoke network consisting of Supercenters and Service &
Tire Centers. Supercenters average approximately 20,000 square feet (our new Supercenter format is
approximately 14,000 square feet) and combine do-it-for-me service labor, installed merchandise and
tire offerings (‘‘DIFM’’) with do-it-yourself parts and accessories (‘‘DIY’’). Most of our Supercenters
also have a commercial sales program that delivers parts, tires and equipment to automotive repair
shops and dealers. Service & Tire Centers, which average approximately 5,000 square feet, provide
DIFM services in neighborhood locations that are conveniently located where our customers live or
work. Service & Tire Centers are designed to capture market share and leverage our existing
Supercenters and support infrastructure. We also operate a handful of legacy DIY only Pep Express
stores.
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 1, February 2, January 28,
2014 2013 2012
Parts and accessories .................. 59.9% 59.9% 61.0%
Tires .............................. 17.9 18.7 18.6
Total merchandise sales ................ 77.8 78.6 79.6
Service labor ........................ 22.2 21.4 20.4
Total revenues ....................... 100.0% 100.0% 100.0%
In fiscal 2013, we opened or acquired 40 new Service & Tire Centers and seven new Supercenters
and converted two Supercenters into Service & Tire Centers. We also closed two Service & Tire
Centers and four Supercenters. As of February 1, 2014, we operated 568 Supercenters, 225 Service &
Tire Centers and six Pep Express stores located in 35 states and Puerto Rico. These locations consist of
approximately 12,910,000 gross square feet of retail space, including over 7,500 service bays.
1