Pep Boys 2014 Annual Report Download - page 12

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schedule supplemented by extensive direct marketing, grass-roots campaigns and occasional print
campaigns. Finally, we utilize in-store signage and creative product placement to help educate
customers about services and products that fit their needs.
Through our desktop and mobile website at www.pepboys.com, we strive to empower customers to
make informed product and service purchase decisions for their automotive projects and vehicle
maintenance needs. We focus on providing high-quality product and service information, online buying
guides and how-to advice, customer product ratings and reviews, product videos and clear repair service
details in a convenient 24/7 online experience. Through our website, customers can learn more about
the Pep Boys brand and our products and services, purchase and schedule installation of tires with our
TreadSmart application, schedule automotive maintenance and repair services with our e-SERVE
application, keep track of maintenance and service records through our online Glovebox application,
and purchase automotive parts and accessories through several delivery methods, including buying
online and shipping to home or picking up in store, as well as the convenience to reserve items online
and pay in store.
This year we have continued to improve the stability of our online infrastructure through a
platform migration upgrade and continued vigilance of Payment Card Industry (PCI) standards and
compliance to ensure our overall security and customer privacy. We maintain a dedicated online
customer service team who provides direct support, including answering any order, product or service
questions, assistance in ordering and basic technical support to customers who contact them via phone,
live chat, email or webform. We are committed to the continued improvement of our online presence
with a focus on providing a seamless omni-channel customer experience that builds trust and enriches
the personal connection between our customers and our brand.
STORE OPERATIONS AND MANAGEMENT
Most Pep Boys stores are open seven days a week. Our Supercenters either have a General
Manager or a Retail Manager and Service Manager (Service & Tire Centers only have a Service
Manager) who report to geographic-specific Area Directors. The Area Directors report to a Regional
Vice President who reports to the Senior Vice President of Store Operations, who, in turn, reports to
the Chief Executive Officer. As of January 31, 2015, the average length of service with Pep Boys for a
General Manager, a Retail Manager and a Service Manager is approximately 8.9, 11.4 and 7.3 years,
respectively.
Supervision and control over individual stores is facilitated by Area Directors and Regional Vice
Presidents who make regular visits to stores and utilize the Company’s computer system and
operational handbooks. All of our advertising, accounting, purchasing, information technology and most
administrative functions are conducted at our corporate headquarters in Philadelphia, Pennsylvania.
Certain administrative functions for our regional operations are performed at various regional offices.
See ‘‘Item 2 Properties.’’
INVENTORY CONTROL AND DISTRIBUTION
Most of our merchandise is distributed to our stores from our warehouses by dedicated and
contract carriers. Target levels of inventory for products are established for each warehouse and store
based upon prior shipment history, sales trends and seasonal demand. Inventory on hand is compared
to target levels on a weekly basis at each warehouse, potentially triggering re-ordering of merchandise
from suppliers. In addition, each Pep Boys store has an automated inventory replenishment system that
orders additional inventory, generally from a warehouse, when a store’s inventory on-hand falls below
the target level. We also consolidate certain slow-moving hard parts inventory into our centrally-located
Indianapolis warehouse that can service each of our stores with overnight delivery of these parts when
necessary.
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