Pep Boys 2014 Annual Report Download - page 7

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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 industry across 806
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 provides prompt delivery of parts, tires and equipment to
automotive repair shops and dealers. Service & Tire Centers, which average approximately 6,000 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
January 31, February 1, February 2,
2015 2014 2013
Parts and accessories ..................... 58.4% 59.9% 59.9%
Tires ................................. 18.1 17.9 18.7
Total merchandise sales ................... 76.5 77.8 78.6
Service labor ........................... 23.5 22.2 21.4
Total revenues .......................... 100.0% 100.0% 100.0%
In fiscal 2014, we opened 19 new Service & Tire Centers and two new Supercenters and converted
one Supercenter into a Service & Tire Center. We also closed eight Service & Tire Centers and six
Supercenters. As of January 31, 2015, we operated 563 Supercenters, 237 Service & Tire Centers and
six Pep Express stores. These locations consist of approximately 12,940,000 gross square feet of retail
space, including over 7,500 service bays.
The following table indicates, by state, the number of stores the Company had in operation at the
end of each of the last four fiscal years, and the number of stores opened and closed by the Company
during each of the last three fiscal years:
1