Pep Boys 2014 Annual Report Download - page 10

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Deliver customer experiences that are ‘‘beyond expectations’’. We strive to be friendly, do it right,
show compassion and keep promises with each and every customer. We have developed a new training
program designed to teach our associates how to enhance the customer experience through building
relationships with our customers. Before addressing a customer’s immediate need, our associates are
taught to build rapport with the customer that will not only lead to customer satisfaction with the
current transaction, but ultimately to the customer choosing Pep Boys for all of their automotive needs
in the future. We also continue to review, revise and prioritize our store-level tasks and key
performance indicator reporting to ensure that our associates are focused on serving our customers and
to maximize our payroll spend. Information gathered through our rewards program, customer surveys
and focus groups helps us to understand the customer experience that our target customer segments
expect and the services and products that will best meet their needs and desires.
Provide the best assortment and shopping experience in the automotive aftermarket. We begin
by being a full service—tire, maintenance and repair—shop. Our full service capabilities, ASE certified
technicians and continuous investment in training and equipment allow customers to rely on us for all
of their automotive maintenance and repair needs—from replacing the oil in their engine to replacing
the engine itself. By offering a broad assortment of branded and private label products, we enjoy a
competitive advantage over many of our DIFM competitors.
The size of our Supercenters allows us to provide the highest level of replacement parts and tire
coverage and the broadest range of maintenance, performance and appearance products and
accessories in the industry. We are able to leverage our Superhub and Tire hub stores, which have a
larger assortment of product than our normal Supercenter, to satisfy customer needs for slow-moving
product or offering an expanded assortment of tires for same day delivery to requesting Supercenters
on demand. This broad product assortment coupled with our tire and equipment offerings also
differentiates us from the competition to our commercial customers. We are also expanding our Speed
Shops (153 as of the end of fiscal 2014), a store-in-a-store within existing Supercenters that creates a
differentiated retail experience for automotive enthusiasts by stocking high-performance and specialty
products. We are similarly focused on price optimization and inventory rationalization opportunities.
We continue to experiment with our new market concept that we call the ‘‘Road Ahead.’’
Designed around the shopping habits of our target customer segments, this concept enhances the entire
store—our people, the product assortment, its exterior and interior look and feel and the marketing
programs—to learn how we can be successful in attracting more of these target customers and earn a
greater share of their annual spend in the automotive aftermarket. Our Road Ahead strategy also
allows us to use our retail business to drive the service business with free professional battery and
wiper installations. To date, we have converted 28 Supercenters in five markets and opened two new
Supercenters in the Road Ahead format. We have also opened 56 new Service & Tire Centers in this
format. As a result, approximately 12% of our store base now operated in the new Road Ahead format
as of January 31, 2015. In 2015, we plan on converting up to an additional 25 Supercenters, which will
test a significantly reduced per store investment.
Tell our story internally and externally. It is essential to our success that our associates and
consumers understand our vision and brand position. Accordingly, our marketing combines promotional
messages with customer service oriented brand positioning. These messages are conveyed to our
associates through corporate communications and leadership training, while tailored marketing plans
including TV and radio promotions, digital media, direct marketing, grass-roots and print campaigns
deliver the message to our target customer segments.
STORE IMPROVEMENTS
In fiscal 2014, our capital expenditures totaled approximately $67.3 million which included the
addition of 21 new locations, the conversion of 28 Supercenters to the Road Ahead format, the
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