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Non-Tech : AutoZone (AZO)
AZO 3,718+1.2%Nov 7 9:30 AM EST

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To: ariel bentolila who wrote (60)2/6/1997 4:01:00 PM
From: Todd King   of 163
 
Ariel.

Pep Boys stores are quite a bit larger than AZO stores. PBY supercenters average 20,800 sq. ft. and Parts USA about 11,900. AZO, on the other hand have stores that are about 6,000 sq. ft. PBY revenues are 85% merchanidise and 15% service, whereas AZO has no service component. So, I would guess that the reason for the margin difference is primarily merchanidise mix, PBY having larger stores likely devotes more space to low margin items like antifreeze, oil, etc. Just a hypothesis.

Todd
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