Pep Boys Sales, Earnings Fall, But New Stores Coming

Pep Boys saw fiscal 2013 sales fall $24.1 million and net profit drop by nearly half from its fiscal 2012, according to the company’s annual report.

But even as comparable store sales were off 1.3% year-over-year, the retail parts/accessories/tires/service company announced plans to add new 30 Pep Boys Service & Tire Centers during fiscal 2014.

For the last fiscal year, which ended Feb. 1, Pep Boys recorded sales of $2.07 billion vs. $2.09 billion the year prior. Net earnings came to $6.9 million, down from 2012’s $12.8 million.

“Our service business continues to grow,” said Pep Boys president and CEO Mike Odell. “On a comparable store basis, customer count, maintenance and repair sales and tire units all grew quarter over quarter.

“While retail tire pricing has recently stabilized, prices are still below last year’s level, which has and is expected to continue to negatively impact top line sales results through the second quarter of 2014,” he said. “We are also growing our service footprint, adding 30 Service & Tire Centers during fiscal 2014. These new Service & Tire Centers showcase the welcoming exterior curb appeal and comfortable customer lounge of our new ‘Road Ahead’ format.

“In addition to allowing us to realize our vision to be the best alternative to the dealer, our Road Ahead strategy also allows us to use our retail business to drive our service business,” Odell continued. “Our first completed Road Ahead market in Tampa continues to produce returns in line with our 15% hurdle rate. Based on those results, we are moving forward to complete an additional 20 stores in three markets – San Francisco, Boston and Charlotte – during the first half of 2014 and initiating plans for an additional three markets to be completed in late 2014/early 2015.”

Pep Boys currently operates some 800 service centers in 35 states and Puerto Rico.

Ascot Supply Corporation, based in Newnan, Georgia, has selected Mark Paquette for the newly created position of vice president. In this position, Ascot Supply said Paquette will oversee the growth of the company's products, corporate profitability, manage marketing and advertising and assume many other responsibilities.

He will work under the direction of current President David Kessler and officially begin his new role on June 3. Paquette joined the tire and automotive industry in the early 1980s at his father's tire shop, and his contributions to Mohawk Rubber Sales were instrumental in the company's growth and eventual sale to Myers Tire Supply in 2021, according to Ascot Supply. Paquette eventually was given a promotion to the role of director of operations at Myers Tire Supply.