Advance Auto Parts To Close 700 Stores
Advance Auto Parts has announced that it will close 700 locations nationwide by mid-2025 as part of a "asset optimization program" to boost business performance.
The shop closures were announced in the company's third-quarter earnings report, which was released on Thursday, November 14, 2024.
The North American aftermarket parts auto retailer reported net sales of $2.1 billion, down from $2.2 billion in the previous year's third quarter.
Comparable store sales fell 2.3%, but the company's gross profit increased 11.0% to $907.9 million, or 42.3% of net sales, compared to 36.9% in the third quarter last year.
The corporation announced an asset rationalization program that aims to reduce 500 corporate stores, 200 individually owned sites, and four distribution centers by mid-2025.
Advance Auto Parts operated 4,781 stores predominantly in the United States, with additional sites in Canada, Puerto Rico, and the United States Virgin Islands. The company also supplied 1,125 independently owned Carquest branded stores in these countries, as well as Mexico and various Caribbean islands.