The Pep Boys – Manny, Moe & Jack (Philadelphia) has closed 31 stores as part of a five-year restructuring plan. The auto supplies retailer also said it cut approximately 550 jobs, which represent about 3 percent of its total work force, all of those coming from the store closures.
The company said the closed stores, which comprise about 5 percent of the company’s total store count, are located in ancillary markets and areas where shopping patterns have changed.
The restructuring plan includes adding smaller stores to its existing supercenter base through acquisitions and new centers; placing more emphasis on its core automotive merchandise; maximizing square footage productivity; and aggressively marking down merchandise and selling non-core and slower-selling products.
For the retailer’s third quarter ending Nov. 3, 2007, revenue dropped 3 percent and same-store sales fell 2.9 percent.