Advance Auto Parts Is Closing 700 Locations

Advance Auto Parts is closing 700 of its locations due to sluggish customer demand for items related to auto repair.

Reuters reports that the company will close these locations by mid-2025 and cut some jobs. In a press release sharing the company’s third-quarter 2024 results and a comprehensive review of operational productivity, Advance Auto Parts detailed the changes it would implement moving forward.

The company shared that 500 of the closures are for corporate-owned stores, and it will also be shuttering 200 independently owned Advance Auto Parts locations and four distribution centers.

Advanced Auto Parts will also implement standardization of its store operating model and improve labor productivity. The company also shared there will be an acceleration in the pace of new store openings.

To streamline supply chain processes, the company will consolidate its distribution centers to operate 13 large facilities by 2026. Furthermore, Advanced Auto Parts will open 60 market hub locations by mid-2027 and optimize transportation routes and freight to lower costs and improve productivity.

Shane O’Kelly, president and chief executive officer, said in the release, “We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business. We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value.”

Advance Auto Parts Lost Money in Its Third Quarter

Advance Auto Parts is closing hundreds of stores in an effort to turn its business around https://t.co/hgwNFm01hl

— The Associated Press (@AP) November 15, 2024

On Thursday, Advance Auto Parts reported a $6 million loss for its third quarter, with revenue totaling $2.15 billion, per U.S. News & World Report. The company also revised its full-year revenue outlook downward for the second consecutive quarter. It has seen a decline in sales since the beginning of 2024 as customers pull back on the purchase of auto parts and other items.

During the 40 weeks that ended Oct. 5, 2024, 23 stores were opened and 29 were closed. This resulted in a total of 4,781 stores as of Oct. 5, 2024, compared with a total of 4,786 stores as of Dec. 30, 2023.