Pep Boys 2014 Annual Report Download - page 18

quantities of inventory from our suppliers may increase the cost of products we purchase or could lead
to suppliers refusing to sell products to us at all.
A disruption of our supplier relationships or a disruption in our suppliers’ operations could have a
material adverse effect on our business and results of operations.
We depend on our senior management team and our other personnel, and we face substantial competition
for qualified personnel.
Our success depends in part on the efforts of our senior management team. Our continued success
will also depend on our ability to retain existing, and attract additional, qualified field personnel to
meet our needs. We face substantial competition, both from within and outside of the automotive
aftermarket, to retain and attract qualified personnel. In addition, we believe that the number of
qualified automotive service technicians in the industry is generally insufficient to meet demand.
We are subject to environmental laws and may be subject to environmental liabilities that could have a
material adverse effect on us in the future.
We are subject to various federal, state and local environmental laws and governmental regulations
relating to the operation of our business, including those governing the handling, storage and disposal
of hazardous substances contained in the products we sell and use in our service bays, the recycling of
batteries, tires and used lubricants, the ownership and operation of real property and the sale of small
engine merchandise. When we acquire or dispose of real property or enter into financings secured by
real property, we undertake investigations that may reveal soil and/or groundwater contamination at the
subject real property. All such known contamination has either been remediated, or is in the process of
being remediated. Any costs expected to be incurred related to such contamination are either covered
by insurance or financial reserves provided for in the consolidated financial statements. However, there
exists the possibility of additional soil and/or groundwater contamination on our real property where we
have not undertaken an investigation. A failure by us to comply with environmental laws and
regulations could have a material adverse effect on us.
A breach of our security could compromise customer, employee or Company information and could harm
our reputation, lead to substantial additional costs, or possible litigation.
In the course of business, personal information about our customers and employees is stored both
electronically and physically. We have taken reasonable and appropriate steps to safeguard this
information. If this information is compromised, however, our reputation could be damaged resulting in
lost business, we could incur additional costs in remediating the issue, or we could face possible
regulatory action. The regulatory environment related to information security and privacy is constantly
evolving, and compliance with those requirements could result in additional costs. There is no
guarantee that the procedures we have implemented are adequate to safeguard all confidential
information, and a breach of this information could potentially have a negative impact on our results of
operations and financial condition.
Business interruptions may negatively impact our store hours, operability of our computer systems and
the availability and cost of merchandise which may adversely impact our sales and profitability.
War or acts of terrorism, hurricanes, tornadoes, earthquakes or other natural disasters, or the
threat of any of these calamities or others, may have a negative impact on our ability to obtain
merchandise to sell in our stores, result in certain of our stores being closed for an extended period of
time, negatively affect the lives of our customers or associates, or otherwise negatively impact our
operations. Some of our merchandise is imported from other countries. If imported goods become
12