Advance Auto Parts Closes 700+ Stores
Advance Auto Parts has announced plans to close over 700 locations as part of a strategic initiative to enhance sales performance and adapt to changing consumer habits. The closures will affect 523 corporate stores, 204 independent locations, and four distribution centers across the United States.
This decision follows a comprehensive operational review aimed at optimizing the company's footprint. Despite the closures, Advance Auto Parts intends to open at least 60 new market hub locations by mid-2027 to boost labor productivity and improve asset utilization.
The company reported a third-quarter loss of 10 cents per share, contrasting with analysts' expectations of a 52-cent profit per share. Net sales for the quarter were $2.1 billion, down from $2.2 billion the previous year. Advance Auto Parts projects full-year net sales of approximately $9 billion.
CEO Shane O'Kelly emphasized the focus on improving asset productivity and creating shareholder value through this strategic plan. The closures are expected to be completed by mid-2025, with associated costs estimated between $350 million and $750 million.
This move aligns with broader trends in the retail industry, where numerous stores across various sectors have been shutting down, projecting a potential closure of 45,000 brick-and-mortar stores in the next five years.
Advance Auto Parts operates over 4,780 stores across the U.S. and has locations in Canada, Mexico, and the Caribbean.
