Tenneco Signs Long-Term Deal to Supply Sears
Pep Boys Increases Income by Closing Stores, Changing Product Mix
Valeo To Market Old World Industries Wiper Blades
Tenneco Automotive has signed a long-term agreement to supply shock absorbers and struts to all 826 Sears Auto Centers and 225 National Tire and Battery (NTB) stores in the United States, effective as of Sept. 1.
Included in the deal are the Monroe, Sensa-Trac, Reflex and Rancho brands.
Announcing the deal, Dave Gabriel, general manager of Tenneco Automotive's North American Aftermarket, said, "We appreciate the tremendous brand awareness and impressive reach of Sears, with 1,051 installer locations nationwide."
Pep Boys reported that they increased their income by 41% in the first quarter by "closing underperforming stores and other profit-enhancing moves."
Although overall sales were 10 percent lower for the auto parts retailer, Pep Boys officials said they lowered their expenses substantially by closing 38 stores, some of which were unprofitable. In addition, the retailer "lowered purchasing costs" and focused on promoting higher-margin product lines.
Pep Boys first quarter ended on May 5, 2001.
Valeo has signed a strategic partnership with Old World Industries to market and distribute its SmartBlade wiper blade.
Valeo already had successfully marketed the wiper blade in Europe where it has sold over 25 million units.
Valeo's SmartBlade is a premium wiper blade that includes a wear indicator, signaling drivers when the blade needs replacing.
"We are very proud of our partnership with Old World Industries," said Brian Flaggs, aftermarket sales manager for Valeo Wiper Systems. "We found an outstanding sales and marketing organization who can successfully promote and place products in the retail, traditional, and installer channels."
Originally published in the August/September 2001 issue of Automotive Booster Magazine.
Copyright 2001 by KAL Publications Inc.
Covering the California auto parts aftermarket since 1928.
