“Simply put, we have better answers to our inventory challenges. Our store operations team and our customers have already responded favorably to the positive changes we’ve made.”
—Camille A. Fratanduono, Vice President–Merchandising Operations
Pep Boys Challenges
- Pep Boys carries a large line of products, many of which have slow turns.
- Some categories have demand substitutability, like oil, batteries and tires.
4R’s “inventory as investment” approach is designed for profit opportunity rather than risk mitigation, especially when managing high margin or infrequently sold product.
This allows Pep Boys to carry the product customers want. 4R’s solution allows for spending more on inventory when the cost of carrying additional product is outweighed by the lost margin to be recovered.