PHILADELPHIA (Sept. 10, 2013) — Pep Boys – Manny, Moe & Jack paid $10 million for the 17 Los Angeles-area retail stores it acquired recently from AKH Co. Inc., the company disclosed this morning in a conference call with investment analysts.
That outlay raises to $75 million the size of Pep Boys' expected capital expenditure spending this fiscal year, President and CEO Mike Odell told the analysts.
Pep Boys intends to convert the 17 former Discount Tire Centers to Service & Tire Centers using its "Road Ahead" retail format, which he described as having a "more welcoming curb appeal and a comfortable and appealing customer lounge."
The purchase enlarges the Philadelphia-based retailer's expansion strategy for the current fiscal year, which previously called for the spending of $65 million to open 31 Service & Tire Centers and seven supercenters.
Pep Boys did not elaborate on the anticipated impact of the acquisition on sales or earnings for the rest of the fiscal year.
Mr. Odell also said Pep Boys has now added Speed Shops—a store within a store designed to attract auto enthusiasts seeking performance products and accessories—at 99 of its 750 stores nationwide and will continue to expand this concept in fiscal 2014.
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