AutoZone to Take Over Pep Boys Locations in Puerto Rico
In a transition that is set to be completed in the first quarter of 2024, AutoZone will take over the store spaces of its competitor Pep Boys in Puerto Rico. This comes following a leasing agreement reached by both American companies.
Sources from this newspaper, who preferred not to be identified, have indicated that Pep Boys will be vacating the store spaces next March to make way for the arrival of AutoZone. However, Pep Boys will continue to operate the service shops, according to the source.
As a result of Pep Boys’ departure from the retail segment, their stores are currently offering a 50% discount on the sale of parts and accessories, excluding tires. Many of the stores’ shelves are already looking empty as customers have taken advantage of the clearance sale and much of the inventory has been sold out.
Scott Collette, CEO of Pep Boys, stated that the conversion of the retail business in Puerto Rico represents the final step in the company’s transition towards a business model primarily focused on automotive services. He also noted that the conversion provides potential employment opportunities for Pep Boys staff at AutoZone.
Bill Rhodes, president and CEO of AutoZone, expressed excitement about expanding the company’s presence in Puerto Rico and fulfilling their commitment to prioritizing their customers. He stated that the conversion in the retail segment allows both organizations to strengthen their presence in Puerto Rico and provide a more comprehensive and convenient automotive solution focused on the customer.
In addition to the transition between AutoZone and Pep Boys, there have been other changes in the automotive parts market on the island in recent years. In 2020, Pep Boys acquired six stores from the local chain Tecnicentro Mundial, while in the past year, O’Reilly Auto Parts and 1-800 Radiator arrived in Puerto Rico.
1-800 Radiator, which has been operating in Puerto Rico for years, has opened a store focused on the retail segment in Bayamón, catering to the general clientele. This expansion shows the ongoing transformation in the parts and service niche in Puerto Rico.