Stevenson points out that Philadelphia-based Pep Boysis actuallytwo businesses under one roof--retail andservices--and both need alot of work. "The businessunder performed for a number of years,"he said,adding that the retail business is improving slowly,but theservice business' recent results weredisappointing. "It's been twosteps forward and onestep back," he noted.

Specifically, Pep Boys' retail turnaround is focusedon providinga new range of merchandise andrefurbishing the store portfolio,according toStevenson. The typical Pep Boys supercenterboasts18,200 sf of retail and service space--nearly twicethe amountof its competitors.

Stevenson said that one of the biggest challenges fortheretailer was maximizing its space and figuring outhow to fill 3,000sf to 4,000 sf of surplus space ineach of its 593 stores. Thecompany has sinceintroduced several new products, including a lineofpower tools and transportation-oriented products.