Case Study: Pep Boys achieves profitable high in-stocks and SKU-level store localization with 4RSystems

4R Drives Results for Pep Boys and Positions for Localization through SKU-level Optimization

Pep Boys is a Philadelphia‑headquartered auto aftermarket value retailer with more than 800 locations across 35 states and Puerto Rico, $2.1B in revenue, and roughly 16 million SKU/store combinations across stores of 5,000–21,000 sq ft. The retailer struggled with a very large product assortment that includes many slow‑turn items and substitutable categories (oil, batteries, tires), creating a need for SKU‑level localization and smarter inventory decisions to protect margin and customer service.

4R implemented an "inventory as investment" approach and SKU‑level optimization that prioritizes profit opportunity over pure risk mitigation, enabling Pep Boys to selectively increase inventory where the cost of carrying stock is outweighed by recovered margin. The solution supports multi‑echelon omnichannel fulfillment, delivered granular localization capability and higher in‑stocks profitably, and was met with positive feedback from store operations.

Pep Boys

Camille A. Fratanduono

Vice President - Merchandising Operations