The new locations, which are mostly service and tire centers, will be concentrated in the Northeast, Southern California and the Chicago-metro area. Pep Boys is also testing a new Speed Shop concept, currently with one store in Los Angeles and another soon-to-open location in Lancaster, PA.
During its second quarter, Pep Boys' same-store sales dropped 2.3%. Comparable merchandise sales fell 4%, but same-store service revenue posted a 5.2% jump.
Merchandise sales are getting hurt by lower consumer spending during the recession and a continuing decrease in miles driven by Americans, said Mike O'Dell, chief executive officer, during Pep Boys' second-quarter conference call. But those numbers could turn around, he said, because "the decline in miles driven has moderated."
Total sales were down to $488.9 million during the quarter from $500 million during the same year-ago period. However, like may retailers cutting costs in the recession, Pep Boys managed to post higher net earnings, taking in $7.7 million, up from the prior period's $5.4 million.
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