PHILADELPHIA (Dec. 13, 2013) — Pep Boys – Manny, Moe & Jack plans to convert 20 of its Supercenter sites in three markets to its “Road Ahead” format in the first half of 2014, following the success of stores converted earlier this year to the open-plan store format.
Pep Boys did not identify the markets it's targeting for the conversions.
In a Dec. 10 conference call with analysts, Pep Boys President and CEO Mike Odell said Pep Boys budgets $525,000 per stor to convert a Supercenter to the Road Ahead format and $75,000 for a Service & Tire Center.
This level of investment, he said, means a converted Supercenter needs to raise revenue the following year by 13 percent in order to yield a 15-percent after-tax rate of return. For the Service & Tire Center location, the targeted revenue increase is about 6 percent.