Putting brakes on repairs
Cash-strapped consumers are putting off routine car maintenance, but industry executives are optimistic, saying drivers can only postpone the tuneups for so long. Robert G. Gross, chief executive of Monro Muffler Brake (MNRO) says most drivers only delay service about a month. And many are putting off buying new cars, giving them more incentive to maintain the ones they have.
“They’re willing to put the $20 to $50 into their car to keep it on the road,” Gross says. Monro’s fiscal first-quarter sales at stores open at least one year are projected to gain and he sees the economic slump as a chance to boost market share by taking over struggling competitors.
For Pep Boys-Manny, Moe & Jack (PBY), the first-quarter metric fell on lower commercial and do-it-yourself sales. But service center sales rose 0.6 percent on higher demand for tire changes, alignments and other services. Discussing the unit, Mike Odell, interim chief executive, told analysts: “We are attacking each category with a complete review, methodically reviewing not just the competitive set and our pricing but also our selling and service process.”
Matt Nemer of Thomas Weisel LLC writes that the unit’s sales rose more than expected and he sees further gains in results.
