Monro (MNRO) investor relations material

Executive background and industry context

• New leadership brings over 30 years of performance improvement experience, with deep expertise in retail and auto aftermarket sectors.

• The business operates 1,115 locations across 32 states, focusing on service rather than retail, which adds complexity but also customer value.

• Despite industry-wide traffic declines, the company maintains profitability and strong liquidity, enabling turnaround efforts.

• Strong vendor relationships and a large employee base are seen as key assets for improvement.

Turnaround strategy and operational changes

• Four critical focus areas: closing underperforming stores, boosting customer traffic, evening out store performance, and improving merchandising.

• Closed 145 stores by end of June, monetizing real estate and minimizing inventory write-offs.

• Hired new merchandising and marketing leaders with relevant industry experience to drive change.

• Enhanced digital marketing, CRM, and direct mail to attract repeat service customers, with early signs of increased calls, revenue, and gross margin.

• Expanding call center coverage to all stores to further drive traffic and sales.

Performance improvement and marketing initiatives

• Implemented Confi Drive inspection tool, leading to significant increases in ride control, brakes, and battery sales.

• Improved pre-appointment customer engagement to enhance service experience and retention.

• Shifted promotional strategy to more targeted, less free-oriented offers, with strong vendor support.

• Clarified tire assortment and improved in-store communication to reduce customer confusion and optimize inventory.