Advance Auto Parts, a dominant force in the automotive supply retail industry, has revealed a sweeping restructuring plan that will see approximately 700 of its stores and four distribution centers across the U.S. permanently shut down.
The company initially disclosed this significant development in November 2024, confirming that the closures would impact 500 corporate-owned stores along with 200 independently owned locations. These shutdowns are expected to be completed by mid-2025.
Based in Raleigh, North Carolina, Advance Auto Parts is undertaking a large-scale restructuring initiative aimed at optimizing operations and strengthening its financial standing, according to a report by the Mirror US.
In an official statement, CEO Shane O’Kelly detailed the company’s long-term strategy for success and sustainability.
O’Kelly stated: “During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation.”
He emphasized that the company’s primary focus is on “core retail improvements” designed to ensure “consistent profitable growth.”
As part of this overhaul, Advance Auto Parts intends to consolidate its distribution network, targeting the operation of 12 large-scale distribution centers by the end of 2026.
Additionally, the company is expediting the rollout of new market hub locations, with an ambitious plan to establish 60 of these hubs by mid-2027.
In 2024, the retailer closed 40 stores but simultaneously opened 42 new locations, bringing its total store count to 4,788 two more than it had at the close of 2023.
However, with the extensive closures planned for 2025, the company’s total number of stores across the country is set to decline significantly by the year’s end.
The first phase of closures is already underway, with Hilco Real Estate Sales data showing that 200 leased stores and 24 owned locations across multiple states have been put up for sale.
These locations include one in Alabama, three in Arizona, one in California, two in Florida, one in Louisiana, two in Michigan, three in Mississippi, one in North Carolina, three in Texas, and one in Wisconsin.
Two stores in Wisconsin have already shut down. Meanwhile, the Wichita Falls Times Record News in Texas reported that a local Advance Auto Parts store, which had been serving the community for over 20 years, has also ceased operations.