Advance Auto Parts to Close Over 700 Stores as Part of Business Revamp
Advance Auto Parts, one of the largest national auto parts retailers, is set to close more than 700 stores as part of a comprehensive strategy to improve business performance. This move, announced during the company’s third-quarter investor update, includes the closure of 523 corporate stores, 204 independently owned locations, and four distribution centers.
Shane O’Kelly, the company’s president and CEO, emphasized that the closures are part of a three-year financial plan aimed at enhancing retail productivity, streamlining operations, and driving shareholder value. The closures will affect locations across various states, with Florida having the largest concentration of stores, followed by significant numbers in Georgia, North Carolina, New York, Ohio, Pennsylvania, Texas, and Virginia.
Despite these closures, Advance Auto Parts plans to standardize its store operations and improve labor productivity. The company is also moving forward with plans to open 60 new market hub locations by mid-2027.
The company, which has over 4,700 stores nationwide, has been facing challenges in the current economic environment, prompting a revision of its financial outlook. Recent sales of the Worldpac auto parts wholesaler for $1.5 billion have also been part of its restructuring efforts.
Advance Auto Parts joins a growing list of retailers making similar decisions this year, including companies like Big Lots and TGI Fridays, some of which have turned to store closures as part of bankruptcy proceedings, while others, like Wendy’s and Walgreens, aim to optimize their financial performance.
