Long or Short Capital

In May on their 1st quarter conference call, auto retail chain CSK Auto announced that they would be launching a secondary store initiative called Pay’N’Save. In the words of CEO Maynard Jenkins (via Streetevents):

Second, the Company has recently launched a new retail concept store named Pay N Save. Pay N Save, which targets a broader demographic than our CSK stores, represents one potential component of an important long-term growth strategy for CSK and is allowing us to develop new sourcing, particularly import sourcing for our merchandise.

Well, Maynard, that doesn’t sound so bad. What kind of goods will you sell at these Pay N Save stores?

Pay N Save stores plan to offer a consistent core of value merchandise, and I want to stress value, consisting primarily of tools, hardware, housewares and other household goods, seasonal goods such as tents, outdoor furniture, water toys, and a constantly changing array of unusual merchandise, such as industrial popcorn machines, garden windmills, full-size leather barber chairs, all at incredibly low prices.

Ahh the “Selling-Shit-from-China” business model. But, lest investors be concerned:

I want to assure everyone we understand what our main focus is and [we]will remain [focused on] automotive parts at CSK.

Because for an auto-retailer, nothing says focus like starting a whole new concept store to sell “an eclectic mix of items such as windmills, fishing gear, water fountains and bar stools.” CSK Auto, you win the Patrick Byrne Award for Operational Focus and Excellence. Congratulations, young padowan.