Pep Boys Closes 31 Stores, Cuts 550 Jobs
Philadelphia, Pep Boys – Manny, Moe & Jack said late Tuesday it cut approximately 550 jobs and closed 31 stores as part of a five-year restructuring plan. Meanwhile, its third-quarter loss widened partly on declining merchandise sales.
The job cuts, which represent about 3% of the auto-parts retailer’s total work force, all come from the store closures. Pep Boys said the stores, which comprise about 5% of its total store count, are located in ancillary markets and areas where shopping patterns have changed.
The company’s restructuring plan includes placing more emphasis on its core automotive merchandise and maximizing square footage productivity. Pep Boys said the plan also includes aggressively marking down merchandise and selling non-core and slower-selling products.
Pep Boys also plans to add smaller stores to its existing Supercenter base through acquisitions and new centers. The company, which started a sale leaseback process to help come up with funds needed for the plan, recently completed a sale leaseback on 34 stores for $166.2 million in gross proceeds.
In addition to restructuring plans, Pep Boys’ reported that its continuing operations’ third-quarter loss widened to $21.7 million compared with a loss of $10.7 million in the prior year.
Revenue for the period ended Nov. 3 dropped 3% to $535.4 million from $550.8 million. Same-store sales fell 2.9%, including a 4.1% same-store merchandise sales decline and a 2.6% increase in same-store service revenue.
Bon-Ton evp of stores to retire at year’s end
YORK, Pa. The Bon-Ton Stores announced that James Zamberlan, evp of stores has stated his intention to retire at the end of fiscal 2007. He will be succeeded Barbara Schrantz, senior vp of merchandise planning and Internet marketing, effective Feb. 29, 2008.
Schrantz will report to Steve Byers, vice chairman of stores, operations, private brand and planning and allocation. Prior to joining The Bon-Ton in 2005 as senior vp of product development and private brand, Schrantz held various merchandising posts of increasing responsibility at Proffitt’s/McRae’s, a division of Saks Inc. Prior to joining Proffitt’s, she was with Herberger’s.
Edgenet names new executives
NASHVILLE, Tenn. Edgenet, a leading provider of guided selling applications and global data synchronization services, has announced the appointments of three new senior executives to its leadership team.
Juliet Reising will serve as the company’s new cfo, Herb Romig joins as vp of merchandising, and Tim Stafford returns to Edgenet to serve in a newly created role as senior vp of global business development.
Reising’s experience encompasses technology and services companies, including Verso Technologies, Mindspring, Avdata, Interserv Corporation, Media Marketing Services and Cox Communications.
Romig spent the last 15 years at The Home Depot where he held a number of key merchandising positions, including senior roles with Home Depot Direct, the DIY giant’s online division.
Stafford, a retail industry veteran, will return to Edgenet to head business development and be responsible for executing partnerships, alliances and new business opportunities. Stafford has served in prominent senior management and consulting roles, most recently with Edgenet as the company’s senior vp of services.