Advance Auto Parts is Closing More Than 700 Stores in 2025
Advance Auto Parts is closing more than 700 locations to shore up the company’s finances following another dismal earnings report, reports CNN Business. The car parts retailer, which has about 5,000 stores, said Thursday that the closures are part of its “strategic plan to improve business performance.” The reduction will result in closing roughly 500 corporate-owned stores plus about 200 independently operated locations and four distribution centers, as well as some job cuts. The company did not immediately provide a full list of locations set to close or details on headcount reductions.
Advance Auto Parts also lowered its full-year outlook for the second quarter in a row, with the company saying on its previous earnings call that “consumers continue to feel the weight of an uncertain macroeconomic climate.” The nearly century-old chain has been engaged in a turnaround plan for the past year as it tries to return to profitability and reverse sliding sales.
Total Retail's Take: Advance Auto Parts continues to struggle to right-size its business. The company is executing a strategic plan to improve business performance with a focus on core retail improvements, according to a press release. Its plan is focused on three pillars: store operations, merchandise, and supply chain. The auto parts chain recently sold Worldpac, an automotive parts wholesaler, for $1.5 billion as part of “simplification” of its business model.
Advance Auto Parts said its store closures outlined for 2025 will enable the business to standardize its store operating model, improve labor productivity, and acceleration in pace of new store openings. The retailer also plans to open 60 market hub locations by mid-2027 to streamline supply chain and distribution.
Shane O’Kelly, Advance Auto Parts' president and CEO, commented: “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."
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.
