This post was originally published on Auto Service World
Advance Auto Parts has announced plans to close more than 700 hundred stores and four distribution centers, along with job cuts, due to sluggish demand for vehicle parts.
The decision was announced alongside the company’s third-quarter report, which showed an adjusted loss of 4 cents per share, an improvement from the $1.19 loss per share a year ago.
Despite an 11 per cent increase in gross profit for the third quarter this year, compared to a nearly 37 per cent increase in the same period last year, the company will close the 700-plus locations by mid-2025. Executives attributed the drop in profits to factors including hurricanes and the CrowdStrike outage, as discussed in a post-earnings call with analysts.
The company noted a decline in consumers opting to repair their cars, prompting the introduction of a new three-year financial plan aimed at reviving its business.
Advance Auto Parts operates more than 4,700 stores across the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. It also supports 1,125 independently owned Carquest-branded stores in these regions, as well as in Mexico and some Caribbean islands.
In an upcoming episode of Auto Service World Conversations, Advance CEO Shane O’Kelly reaffirmed Advance’s commitment to the Canadian market.
“I went to Canada and I was blown away. I was blown away by the calibre and positive attitude of our team members,” he said, highlighting the commitment of store leaders and the market opportunities available.
Advance sold Worldpac for nearly $1.5 billion this year, a deal announced in August and closed in November.
While the exact number of job cuts and affected positions were not specified, the company reported plans to close 523 corporate stores, move away from 204 independent locations and shut down four distribution centers. Specific locations for these closures were not disclosed.
