Advance Auto Parts, a leading U.S. auto parts retailer, revealed a mass restructuring plan, closing around 700 stores across the country. The shutdown will affect 500 corporate-owned stores, 200 independently operated outlets, and four distribution centers.
The company disclosed its plan in November, attributing to a slowdown in demand for vehicle parts, and reaffirmed its ‘restructuring plan’ during a recent earnings call. With declining sales and financial losses, the company has opted to revise its strategy. The shift is intended to boost profitability and streamline operations.
Advance Auto Parts runs 4,700 stores nationwide, with over 200 of them in New York state. Although the complete list of store closures hasn’t been disclosed, the company has already shut down seven stores in New York, impacting cities such as Buffalo, Rochester, Schenectady, and Staten Island.
Shane O’Kelly, President and CEO of Advance Auto Parts, stressed the importance of the move for the company’s long-term sustainability. He noted that the company is charting a clear path forward with a new three-year financial plan focused on improving productivity, refining core retail operations, and delivering great value to shareholders.
As reported by USA TODAY, the closures have had a substantial financial impact. In Q4 2024, the company reported $2.0 billion in net sales, a 0.9% decrease from the previous year. Additionally, comparable store sales fell by 1%, excluding the locations set to close under the restructuring plan.
It’s uncertain if Advance Auto will shut down more locations in the state. The company listed 109 Kentucky stores on its website; four stores in Carrollton, Lexington, Louisville, and Paducah are marked as closed. Customers can use the company’s store finder to get details about their local store.
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