Advance Auto Parts Aims to Boost Productivity by Closing Stores

Advance Auto Parts plans to close 523 corporate stores, exit 204 independently owned locations and close four distribution centers in the United States by mid-2025 as it works to boost its operational productivity.

The automotive aftermarket parts provider operates 4,781 stores primarily within the United States and serves 1,125 independently owned Carquest-branded stores, it said in a Thursday (Nov. 14) press release.

The announcement followed the company’s sale of its wholesale operation, Worldpac, which was announced in August and closed earlier in November.

“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,” Advance Auto Parts President and CEO Shane O’Kelly said in the release. “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.”

The company announced the planned store closures while reporting third-quarter earnings results showing that its net sales from continuing operations slid from $2.2 billion last year to $2.1 billion, its comparable sales decreased 2.3%, and its gross profit increased 11%, according to the release.

With its strategic plan, Advance Auto Parts aims to improve its adjusted operating income margin by more than 500 basis points through fiscal year 2027 by optimizing its store operations, merchandising and supply chain, per the release.

In addition to reducing its U.S. asset footprint, the company plans to standardize its store operating model, improve its labor productivity and accelerate the pace of its new store openings, according to the release.

When it comes to merchandising, Advance Auto Parts aims to improve first costs, bring parts to market faster, enhance the availability of parts, and improve its gross margin by managing pricing and promotions, the release said.

In its supply chain, the company plans to consolidate its distribution centers, open more market hub locations, and optimize its transportation routes and freight, per the release.

“The company is executing a strategic plan to improve business performance with a focus on core retail improvements,” the release said.

In the company’s Nov. 4 announcement of the closing of the sale of Worldpac, O’Kelly said the move will aid in the simplification of Advance Auto Parts’ business model.

“The sale enables us to focus on actions to strengthen our blended-box business, which will elevate the performance of our core operations and support our goal of delivering consistent profitable operating results,” O’Kelly said.

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