Iconic Auto Retailer Advance Auto Parts to Shut 700 Locations After 92 Years

According to The Sun , A major auto retailer is set to close more than 700 locations in the coming months, forcing customers to seek alternatives for their auto parts needs. The closures are part of a strategic plan to boost business performance and adapt to changing consumer behavior.

Shane O’Kelly, president and CEO of Advance Auto Parts, revealed the decision during a discussion of the company’s third-quarter results. O’Kelly emphasized that the closures are part of a broader three-year financial plan aimed at enhancing retail operations and driving shareholder value.

Advance Auto Parts, which currently operates around 4,700 stores across the U.S., will shut down 523 of its corporate locations, 204 independent stores, and four distribution centers. The specific locations slated for closure have yet to be disclosed.

Florida, which has the highest concentration of Advance Auto Parts stores, will see the most closures. Other states with significant numbers of closures include Georgia, North Carolina, New York, Ohio, Pennsylvania, Texas, and Virginia, each having more than 200 locations.

In addition to the store closures, Advance Auto Parts is also overhauling its operating model, including a shift to a new “market hub” format to improve labor productivity. The company plans to open at least 60 new market hub locations by mid-2027, partially offsetting the store closures.

This move follows a reduction in the company’s full-year financial outlook, attributed to the ongoing challenges of an uncertain macroeconomic climate, which continues to impact consumer spending. Advance Auto Parts also recently sold its auto parts wholesaler division, Worldpac, for $1.5 billion.

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The closure of over 700 Advance Auto Parts locations adds to the growing list of retailers shutting down stores in 2024. Several companies, including Big Lots, which closed over 500 stores due to Chapter 11 bankruptcy, and clothing retailers like Express and Rue21, which filed for bankruptcy and closed hundreds of stores, have been similarly affected. Even large chains like Walgreens have shut around 1,200 locations in an effort to streamline operations and reduce costs, following a strategy akin to Advance Auto Parts’ own restructuring plans.

The retail sector continues to face significant challenges as businesses adapt to evolving market conditions, with even restaurants like Red Lobster and TGI Friday’s filing for bankruptcy and closing locations.