Advance Auto Parts Joins Wave of Retail Giants Closing Hundreds of Stores

North Carolina-based Advance Auto recently is the most recent retail giant to announce it will be closing hundreds of its locations across the United States by mid-2025. This decision is part of a move the company describes as “strategic,” and hopes will improve its business performance.

“The company is executing a strategic plan to improve business performance with a focus on core retail improvement,” Advance Auto announced in a Nov. 14 financial statement. The statement included a summary of the company’s 2024 Q3 financial results, which showed a 6 million dollar drop in profits from the same quarter in 2023.

The announcement of store closures comes fresh on the heels of Advance Auto closing its sale of Worldpac, a global distributor of auto parts that will now operate independently from its former parent company. Advance Auto sold Worldpac to the investment firm Carlyle for 1.5 billion dollars.

“We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” said Shane OKelly, president and chief executive officer of Advance Auto. 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.”

Advance Auto, which operates mainly in the United States but also has a presence in Canada and Mexico, plans to shutter 523 corporate locations and four distribution centers. Details on which locations will be closing, and the number of employees affected have not yet been announced.

Sources

Advance Auto Parts: “Advance Auto Parts Reports Third Quarter 2024 Results and Completes Comprehensive Review of Operational Productivity” (2024)

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