STORES Magazine - April 2008 - (Page 50)

WORTH WATCHING / ONLINE SERVICES New Service at Pep Boys Manny, Moe and Jack team with lanelogic to facilitate used-car sales BY MICHAEL HARTNETT ep Boys is going into the used car business – sort of. The auto parts, accessories and service company has partnered with Richardson, Texas-based lanelogic to create an online program through which consumers can complete a standard form and receive a cash offer for their vehicle. P Pep Boys’ considerable resources will come into play when potential sellers are directed to their nearest store location to have the vehicle’s estimated value confirmed by a mechanic. With 560 locations across the country offering automotive maintenance and repairs from 6,000 service bays, along with its sales of auto parts and replacement tires, Pep Boys is able to offer owners a convenient alternative for selling their vehicles. For its most recent fiscal year, Pep Boys generated total revenues of about $2.3 billion. The largest retailer of used cars, Richmond, Va.-based CarMax, estimates that the used-vehicle market represents $340 billion in annual transactions. Using caroffer, lanelogic’s online product, potential sellers complete a form that is used to determine the vehi50 STORES / APRIL 2008 cle’s market value and generate a ANNUAL USED-VEHICLE SALES cash offer. If that offer is acceptable, the seller is directed to a Pep Boys drop-off location, where a mechanic will inspect the vehicle and verify its value. The seller will then receive a bank draft for the agreed“And the other reality is, CarMax is in upon amount. the business of selling cars and Pep Boys Sellers “can transact the sale over the is not,” Cirelli says. “Some people may Internet at any time of day and find out feel less intimidated.” how much lanelogic is willing to pay,” Although the used car market offers says senior vice president of corporate enormous potential for additional sales development Joe Cirelli. And with 560 growth, “We have no specific [financial] Pep Boys locations, “they won’t have targets,” Cirelli says. “We know this is a to drive very far” to complete the transnew approach to doing business. Our action. primary motivation is to get customers in the door and run our core business. If Confirming vehicle value [caroffer] turns out to be something bigPep Boys will not be involved with any ger, we will adapt.” sales activities. The company’s role in Pep Boys was attracted to lanelogic this new venture will be one of confirmand its used car concept in large part being each vehicle’s actual value, and takcause of the key executives associated ing possession of vehicles that are sold. with the program. “Bruce Thompson With lanelogic’s network of transporta[lanelogic’s CEO] was the founder of tion companies and dealers, vehicles will American Auto Exchange, which was be picked up from store locations withvery successful, and Willis Johnson in a matter of days. [CEO of auto salvage company Copart] With CarMax, Cirelli says, “some inhas invested in this, so the folks we are formation is available through their dealing with are people who have a website but [sellers] have to take the autrack record and are very successful.” tomobile to a CarMax location for a StORES price quote. With caroffer, they will have a quote before taking the vehicle to Michael Hartnett is a Brewster, N.Y.based business writer. a Pep Boys location. $340 billion WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - April 2008

STORES Magazine - April 2008 Contents Executive Editor's Page President's Page More Retailers Bagging Monthly Comp-Store Reports Time-Warner Center's Economy-Defying Results What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Eating Locally Grocery Concept2Watch Restaurants Online Services Marketing Human Resources Product Lifecycle Management E-Commerce: Peer Reviews Drive Online Buyers Kiosks Recycling Operations Payment Systems POS Logistics E-Commerce: Getting Personal Website Management LOEB Retail Letter Arts Update Point of View NRF News Retail Industry Calendar Last Laugh

STORES Magazine - April 2008

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