Advance Auto Parts closing hundreds of stores in effort to turn business around
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Advance Auto Parts is closing more than 500 stores and shedding another 200 independent locations as part of its efforts to revive its struggling business.
Raleigh, North Carolina-based Advance Auto said Thursday that it would be reducing its U.S. footprint as part of a “strategic plan to improve business performance.” The company said it is closing a total of 523 of its Advance corporate stores, as well as four distribution centers, and exiting 204 independent locations by the middle of next year.
Specific locations and the number of employees expected to be affected were not immediately disclosed. A spokesperson for Advance Auto declined to comment further.
There are 110 Advance Auto stores in Indiana, including 13 in Indianapolis, two in Anderson and single stores in Speedway, Noblesville, Franklin, Greenfield, Greenwood, Lebanon, Mooresville, Plainfield and Whiteland.
The company also has an Indiana distribution center that it opened in 2019 in Remington, about 90 miles northwest of Indianapolis. The 550,000-square-foot facility was to employ up to 600 workers when operating at full capacity.
Advance Auto outlined some wider turnaround efforts in Thursday’s announcement. Despite these sizeable closures, the company noted goals like an “acceleration in pace of new store openings” and adopting a standardized operating model. And it pointed to supply-chain consolidation plans, noting that it expected to incur costs related to converting certain stores and distribution centers into “market hubs.”
Advance Auto on Thursday posted a loss of $6 million in its third quarter on revenue of $2.15 billion. The company also lowered its full-year revenue outlook for the second consecutive quarter.
The seller of car batteries, motor oil and more has seen waning sales since the start of the year, and is making efforts to boost its balance sheet. Earlier this month, the company closed a $1.5 billion sale of Worldpac, its automotive parts wholesale distribution business, to investment firm Carlyle.
Advance Auto primarily operates in the U.S., but also has some corporate stores and independent locations in Canada, Mexico and various Caribbean islands. As of Oct. 5, Advance Auto operated more than 4,780 stores and served 1,125 independently owned, Carquest-branded locations.
Shares of the company closed up less than 1% Thursday, but the stock is down 33% year to date.