Advance Auto Parts Is Closing Stores Across the US

Advance Auto Parts is streamlining its national footprint by closing hundreds of stores. To start, the auto parts giant will officially shutter 200 leased locations and 24 owned stores over the next couple of weeks. The closings are part of a previously announced turnaround plan to return the company back to profitability.

Hilco Real Estate is tasked with selling Advance Auto’s real estate assets. Stores located in several states, including Arizona, Florida, Michigan, and Texas, are among the first 224 locations to go.

Late last year, Advance Auto said it intends to close nearly 730 stores total — 523 corporate and 204 independent locations. Four distribution centers will also be shut down. The company noted costs associated with the closures could reach as high as $750 million, and the process should be completed sometime in mid-2025.

“We made the decision to close certain non-performing, non-strategic stores in the U.S. to better position our asset base for long-term, sustainable growth,” said Advance Auto Parts CEO Shane O’Kelly in November, per Forbes.

Advance Auto Parts Has a Plan

Advance Auto Parts’ reported net sales plummeted 3.2%, to $2.15 billion, in the third quarter of 2024, disappointing analysts who were expecting $2.62 billion. Also falling were same-store sales, dropping 2.3%.

At the time, Advance Auto blamed the poor results on hurricanes and slow product demand. It also cited inflation and increased competition from China as well as a CrowdStrike outage, which disrupted major industries including automotive and banking.

However, company executives noted the financial struggles and promised a plan to fix things.

“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,” stated O’Kelly.

It’s unknown how many workers will be impacted by the store closures. Recent estimates put the number of Advance Auto Parts stores around 4,780 across the U.S., Puerto Rico, Canada, and the U.S. Virgin Islands.

Advance Auto’s turnaround plan not only includes store closures. The car parts dealer also intends to improve store operations, enhance supply chain efficiency, and revamp in-store merchandising.