Pep Boys continues expanding new format

The Pep Boys is converting 18 recently acquired Service & Tire Centers in Southern California to its new Road Ahead format and preparing for the grand reopening of six supercenters and five Service & Tire Centers in Tampa, Fla.



The company already converted nine Service & Tire Centers to the Road Ahead format this year, and reported that performance at those stores has been ahead of original projections. The company also plans to convert three additional smaller markets (20 supercenters) in the first half of 2014.



News of its expansion plans comes immediately following the company’s third-quarter results for the period ended Nov. 2, which saw sales decrease by $2.6 million, or 0.5%, to $507.0 million from $509.6 million for the prior-year quarter.



Comparable sales decreased 2.8%, consisting of a 0.5% comparable service revenue increase and a 3.6% comparable merchandise sales decrease.



Net earnings for the third quarter of fiscal 2013 were $1 million, or $0.02 per share, as compared to a net loss of $6.8 million, or $0.13 per share, for the prior-year quarter.



“Our strategically important maintenance and repair service business grew in sales for the sixth consecutive quarter,” said president and CEO, Mike Odell. "As the weather has turned colder, tire sales have started to improve, with mid-level price points and branded tires leading the way. Competitive pressures, however, continue to challenge sales of lower price point tires."