Is Pep Boys Going Out Of Business? The answer is “No.” A 101-year-old Philadelphia-based Pep Boys brand is neither closing all of its locations nor going out of business. However, according to reports, the company announced closing 33 of its stores in 2003, and In 2021, it closed 100 more retail stores…
The Pep Boys in Prices Corner is gone and working on a new auto parts store. In 2022, It shifted its stores away from its retail stores.
According to reports, In 2003, Pep Boys shuttered 33 stores and laid off many employees i.e., nearly 860 employees were impacted at that time.
In the same month, The CEO of the company, Lawrence Stevenson, said, “We are closing stores and laying off employees because we want to return to profitability and growth. It is a crucial step for us to go further. However, nobody wants to downsize the business as we’re going to be doing today, but it is the only option we have had.”
Before the 2003 closure and mass layoff, the chain had already shut 38 retail stores and cut down 1,500 of its workforce.
In June 2021, Pep Boys declared that more than 100 locations were at stake and would close soon. It is noted, at that time of closure, only 1 location was closed in Delaware, i.e., Newark.
We are not saying the only affected location was Delaware, but it lagged behind most other states in job growth.
The CEO of Pep Boys, Brain Kaner, stated, “We are trying to adapt to changes according to customer demand and their preferences. It is the same way as our founders did before, to adapt accordingly.”
He also added, “We are adjusting to optimize our network footprint. Besides, we are collaborating with other retailers right next to our existing service centers to occupy open space.”
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About Pep Boys
Pep Boys, formerly named Pep Auto Supply, is an automotive aftermath service chain in America founded in Philadelphia, Pennsylvania. The company was established in 1921 by Emanuel “Manny” Rosenfeld, Maurice “Moe” Strauss, W. Graham “Jack” Jackson, and Moe Radavitz.
The company is headquartered in Bala Cynwyd, Philadelphia, Pennsylvania.
Pep Boys provides maintenance and repair services to customers, including tires, automotive parts, and fleet maintenance and repair across the United States.
The company is believed to operate over 9,000 service locations in more than 30 states across the country. The Pep Boys Mobile Crew Service Trailer offered automotive maintenance on location in Puerto Rico.
Are All Pep Boys Locations Closing?
No, all Pep Boys Locations are not closing. In 2021, the chain owner Icahn Enterprises declared that it closed 100 retail stores. Not only Pep Boys but other companies, including NAPA, Autozone, and Advance Auto Parts, also ended up in its several go-to stores for motor parts and accessories since the onset of the COVID-19 pandemic.
It announced to shift out its retail store to new locations and close 100 of its 1,000 locations across the country.
Pep Boys operate its tires and auto service stores at various locations. One is on North Wales Road in Montgomery Township, which shut down all its stores on 1st August 2021.
According to the reports, it was noted that there were multiple stores of the Pep Boys that have closed. While some went up for sale or Advance Auto Parts had acquired some. It is also believed that the main store of Pep Boys, located on Allegheny Avenue in North Philadelphia, was also taken over by real estate investors. Moreover, some continue to go at least.
It is noted that billionaire Carl Icahn acquired over 500 stores for 1 billion US dollars in 2016. More than 100 500 stores had been closed while he sold out some.
In 2021, The owner, Icahn Enterprises, spell bounded and refused to answer how many retail stores Pep Boys have in business. But one of the spokeswomen said, “There are over 1,000 locations across the United States and Puerto Rico along with 9,000 service bays still in business.”
Due to the COVID-19 pandemic, the market was greatly impacted and was attributed to low-volume markets. On the contrary, by March 2021, the auto service demands were increased by 13 million US dollars to 322 million US dollars.
Why Are Pep Boys Closing?
As we all know, Pep Boys is not going out of business but shutting a few of its stores due to several possible reasons.
It has happened so that the company shifted its focus on offering repair services to its customers. The company partnered with parts suppliers, including Autozone, to fill the retail gap.
While another reason for closing some of its locations was the expiration of the lease. Yes! The company closed its store after the lease expired, and the property was redeveloped. It was the case of Delaware’s Newark location. But the company is still exploring locations after closing the previous one. Pep Boys explored various locations to relocate its stores.
Who Bought Pep Boys?
The chain was bought out by Icahn Enterprises in 2015. It bought out with strategic plans, shifting its focus to repairs. Additionally, it shifted the automobile retail sectors.
Later, in 2021, in March, the demand for auto service skyrocketed by 13 million US dollars. At that time, the chain faced a reduction in auto parts sales, losing 50 million US dollars. The reports came from the Philadelphia Inquirer of that group CFO, Sung Cho, who said investors should shut down stores. By doing so, the chain is set to accelerate and might prevent further losses and low sales.
What Is The Future Of Pep Boys?
When the news came that the new car sales were not in demand, it was good news for Pep Boys. It was good news because no new cars meant older cars would be there, and it required service work and maintenance.
One of the spokespeople for Pep Boys, Elizabeth Romaine, also said, “Low sales of new cars means an advantage for the Pep Boys. Older cars were on the road if the new registrations were fewer. Older cars mean more maintenance and service work.”
The chain said if you expect to see a major change in Delaware, it does not require only removing the cohabitation and statutes with Autozone. Pep Boys planned something different to renew its existing Delaware locations by incorporating some of their new business models. The chain was expecting to digital customer service experience entirely.
As of September 2022, Delaware had seven stores under the Pep Boys, which included:
- One location is in Bear.
- One is in Talleyville (the only location in Delaware with a completely operating retail store and service shop).
- Three locations in Wilmington
- Two are in New Castle.
It is believed that the Pep Boys Center in Bear and Prices Corner was set to be renovated that same month.
Who Are The Rival Companies Of Pep Boys?
The overall score of the Pep Boys is 4.3 out of 5. The chain competes with the best Rival companies, which are as follows:
- Advance Auto Parts (Overall Score: 4.5 out of 5)
- Autozone (Overall Score: 4.4 out of 5)
- Safelite (Overall Score: 4.4 out of 5)
- RealTruck (Overall Score: 4.4 out of 5)
- BMW – Motoradd- Bohling.com (Overall Score:4.4 out of 5)
- Online Auto Parts (Overall Score: 4.3 out of 5)
- ECS Tuning (Overall Score:4.3 out of 5)
- Jegs (Overall Score: 4.3 out of 5)
- Supercheap Auto (Overall Score: 4.3 out of 5)
- CarParts.com (Overall Score: 4.3 out of 5)
- WeatherTech (Overall Score: 4.3 out of 5)
- Extreme Terrain (Overall Score: 4.3 out of 5)
- ShearComfort Seat Covers (Overall Score: 4.3 out of 5)
- Raneys Truck Parts (Overall Score: 4.3 out of 5)
- CARiD (Overall Score: 4.3 out of 5)
- Rack Attack (Overall Score: 4.3 out of 5)
- American Muscle (Overall Score: 4.3 out of 5)
- Pedal Commander (Overall Score: 4.3 out of 5)
- Smartliner USA (Overall Score: 4.3 out of 5)
- Etrailer (Overall Score: 4.2 out of 5)
- Headlight Revolution (Overall Score: 4.2 out of 5)
- Hyundai Accessory Store (Overall Score: 4.2 out of 5)
- Redline 360 (Overall Score: 4.2 out of 5)
- 4 Wheels Parts (Overall Score: 4.2 out of 5)
- 1 A Auto (Overall Score: 4.2 out of 5)
- CJ Pony Parts (Overall Score: 4.2 out of 5)
- Late Model Restoration (Overall Score: 4.2 out of 5)
- Quadratec (Overall Score: 4.2 out of 5)
- AutoAnything (Overall Score: 4.2 out of 5)
- Hoonigan (Overall Score: 4.2 out of 5)
- SubiSpeed (Overall Score: 4.2 out of 5)
Final Thoughts On Pep Boys Business
We have concluded that the popular store Pep Boys has several locations across the United States. It shuttered several of its stores already.
But the chain is closing only some of its stores and going out of business. In 2003, it closed more than 33 retail stores; in 2021, it shut down 100 of its locations out of 1,000 total stores.
It is believed that the company already closed numerous stores in Pennsylvania, Washington, Michigan, New Mexico, and Louisiana before the onset of 2020.