Advance Auto Parts, a leading automotive parts retailer, announced a significant restructuring plan on Thursday, aimed at reviving its struggling business. The North Carolina-based company will close more than 500 corporate stores and exit 200 independent locations across the United States.
The closures, expected to be completed by mid-2025, are part of a strategic plan to improve business performance. Advance Auto Parts will also shutter four distribution centers as it consolidates its supply chain.
Despite the substantial closures, the company outlined ambitious goals, including accelerating new store openings and adopting a standardized operating model. Advance Auto Parts seeks to bolster its balance sheet amid waning sales since the start of the year.
In its third-quarter earnings report, Advance Auto Parts posted a $6 million loss on revenue of $2.15 billion, prompting the company to lower its full-year revenue outlook for the second consecutive quarter.
Earlier this month, Advance Auto Parts closed a $1.5 billion sale of Worldpac, its automotive parts wholesale distribution business, to investment firm Carlyle. The company operates over 4,780 stores in the U.S., Canada, Mexico and the Caribbean, serving 1,125 independently owned Carquest-branded locations.
