The iconic Manny, Moe and Jack statue atop the Pep Boys in Prices Corner is gone and work is underway on a new auto parts store.
So what’s happening with the 101-year old, Philadelphia-based Pep Boys brand in Delaware?
No, Pep Boys is not closing down all of its stores. It is, however, shifting away from its retail stores by focusing mainly on providing repair services while partnering with parts suppliers such as Autozone to fill the retail vacancy.
Last June, Pep Boys announced the closing of over 100 locations. The only location to close in Delaware was in Newark after the lease expired and the property was redeveloped. Pep Boys said it is still exploring locations for a new Newark area shop.
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Pep Boys is shifting away from its retail stores to focus on providing repair services while partnering with parts suppliers such as Autozone to fill the retail vacancy.
“We’re just doing what our founders did, adapting to changes in the market and the demands and preferences of our customers,” Pep Boys CEO Brian Kaner said. “We have made several strategic adjustments to optimize our network footprint, one of which is working with other retailers to occupy open space next to Pep Boys service centers.”
In 2015, the chain was bought out Icahn enterprises with plans to shift out of the automobile retail sector and focus more on repairs.
By March 2021, Pep Boys had lost $50 million in auto parts sales as demand for auto service increased by $13 million within the same time. Around this time it was reported by the Philadelphia Inquirer that group chief financial officer Sung Cho told investors that store closings were set to accelerate due to this drop in sales and further losses.
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A recent drop in new car sales could be good news for Pep Boys.
“This gives Pep Boys an advantage because it means there are fewer new registrations and more older cars on the road that need maintenance and service work,” said Elizabeth Romaine, a spokesperson for Pep Boys.
The removal of statues and the cohabitation with Autozone isn’t the only change you can expect to see in Delaware. Pep Boys plans on incorporating some of their new business model into existing Delaware locations – including an entirely digital customer service experience.
Delaware currently has seven Pep Boys stores in the state – three in Wilmington, two in New Castle and one each in Bear, Dover and Talleyville. Talleyville is the only location in the state with a fully operating retail store attached to the service shop.
The Pep Boys in Bear and Prices Corner are set to undergo renovation in the coming weeks.
