Popular Auto Parts Store Will Shut Down 700 Locations

Popular auto parts store Advance Auto Parts has announced it will close more than 700 locations.

Advance Auto Parts, which has 4,700 stores across the United States, announced the decision to shut down 700 locations in a third-quarter meeting.

CEO Shane O’Kelley shared, “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.”

It was not revealed what states will be impacted by the closures.

Advance Auto Parts to close more than 700 locations https://t.co/FzmA7WKhbr pic.twitter.com/HeT9WpVBfz

— WFLA NEWS (@WFLA) November 14, 2024

Check out what the Hill reported:

A national auto parts retailer plans to close more than 700 locations as part of “a strategic plan to improve business performance.”

Advance Auto Parts, which has more than 4,700 stores across nearly every state, announced the decision as part of its third-quarter update to investors.

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“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,” Shane O’Kelly, president and chief executive officer, said in a press release.

The company’s footprint is expected to be cut by 523 Advance Auto Parts corporate stores, 204 independent locations and four distribution centers, the press release noted.

A list of stores expected to shutter was not immediately available. Advance Auto Parts has more than 500 locations in Florida, more than in any other state. In seven states — Georgia, North Carolina, New York, Ohio, Pennsylvania, Texas and Virginia — there are more than 200 locations.

Advance Auto Parts to close more than 700 locations by mid-2025.
https://t.co/cBIfCO6gH0

— Channel 3 News (@wcax) November 14, 2024

Here’s what CNN reported:

Advance Auto Parts is closing more than 700 locations to shore up the company’s finances following another dismal earnings report.

The car parts retailer, which has about 5,000 stores, said Thursday that the closures are part of its “strategic plan to improve business performance.” Advance Auto Parts (AAP) shares slid nearly 5% in premarket trading after it reported earnings that missed analysts’ expectations.

The reduction will result in closing roughly 500 corporate-owned stores plus about 200 independently operated locations. The company did not immediately provide a full list of locations set to close.

Advance Auto Parts also lowered its full-year outlook for the second quarter in a row, with the company saying on its previous earnings call that “consumers continue to feel the weight of an uncertain macroeconomic climate.”

The nearly century-old chain has been engaged in a turnaround plan for the past year as it tries to return to profitability and reverse sliding sales. It recently sold Worldpac, an automotive parts wholesaler, for $1.5 billion as part of “simplification” of its business model.

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