Advance Auto Parts is moving forward with plans to shutter approximately 700 locations and four distribution centers across the United States as part of a major restructuring strategy, the company confirmed in its latest earnings call.
The closures, originally announced in November 2024, include 500 corporate-owned stores, 200 independently owned locations, and four distribution centers, all slated to shut down by mid-2025.
Company Restructuring and Strategic Plans
The auto parts retailer, headquartered in Raleigh, North Carolina, has been implementing a broad restructuring effort aimed at streamlining operations and improving financial stability.
“During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation,” Shane O’Kelly, Advance Auto Parts’ president and CEO, said in a statement.
The company is concentrating on “core retail improvements” to achieve “consistent profitable growth.” As part of the overhaul, Advance Auto Parts plans to consolidate its distribution network, aiming to operate just 12 large distribution centers by the end of 2026. Additionally, the company intends to accelerate the opening of new market hub locations, with 60 planned by mid-2027.
Despite these strategic moves, the company’s financial outlook has raised investor concerns. Following its 2025 sales guidance, Advance Auto Parts’ stock dropped by about 18 percent on Wednesday.
Store Closures and Impact on Workforce
The restructuring will not only lead to store closures but also workforce reductions, though the company has not disclosed specific job loss figures.
In 2024, the chain closed 40 stores while opening 42 new locations, ending the year with 4,788 stores—two more than in 2023. However, this number will drop significantly by the end of 2025 due to the mass shutdowns.
The first wave of store closures is already underway, with properties listed for sale by Hilco Real Estate Sales. Hilco is managing the sale of more than 200 leased stores and 24 owned locations, including properties in multiple states.
Among the 24 owned locations listed for sale are:
- Alabama: Bay Minette (101 McMeans Ave.)
- Arizona: Mesa (1201 West University Dr.), Phoenix (3246 West Indian School Rd.), Prescott Valley (3484 North Glassford Hill Rd.)
- California: Cathedral City (68-580 Ramon Rd.)
- Florida: Clermont (390 East Hwy. 50), Fort Myers (3671 Cleveland Ave.)
- Louisiana: New Orleans (2641 South Clayborne Ave.)
- Michigan: Battle Creek (1405 Columbia Ave. West), Wyoming (1784 28th At. SW)
- Mississippi: Jackson (2020 Raymond Rd., 205 West Northside Dr.), Meridian (2906 8th St.), Picayune (230 Memorial Dr.)
- North Carolina: Greensboro (5307 West Market St.)
- Texas: Corpus Christi (10765 Leopard St.), McAllen (1010 North 10th St.), Weslaco (154 North Texas Blvd.)
- Wisconsin: Manitowoc (3404 Calumet Ave.)
The Herald Times Reporter, a USA Today Network site, confirmed that two Advance Auto Parts locations in Manitowoc, Wisconsin, have already closed. Similarly, the Wichita Falls Times Record News in Texas reported that a local store had shut down after nearly 20 years of business.
Industry and Market Challenges
Advance Auto Parts operates more than 4,700 stores across the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands. It also serves 1,125 independently owned Carquest-branded locations across these regions, as well as in Mexico and the Caribbean.
While Advance Auto Parts has attempted to restructure its business model, it has struggled to keep pace with its competitors.
What’s Next for Advance Auto Parts?
With the closures set to continue through mid-2025, the company will be focused on executing its turnaround strategy. Customers looking for store-specific closure details can check the company’s website for updates.
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