Advance Auto Parts to Close Hundreds of Stores Across the US, Including New York Locations

Advance Auto Parts recently announced plans to close more than 500 of its stores and 200 independent locations as part of a strategic effort to reinvigorate its struggling business. The company, based in North Carolina, revealed that this move is part of a broader plan to enhance its business performance.

Specific details about the impacted locations and the number of employees affected were not immediately disclosed.

Despite these significant closures, the company outlined various turnaround efforts. It aims for an "acceleration in the pace of new store openings" and the adoption of a standardized operating model. Additionally, plans for supply-chain consolidation, which include converting certain stores and distribution centers into "market hubs," were highlighted in the announcement.

The company's decision comes amid financial challenges, with Advance Auto reporting a third-quarter loss of $6 million on revenue of $2.15 billion. Furthermore, it lowered its full-year revenue forecast for the second consecutive quarter. The decline in sales has been notable, prompting the company to take measures to strengthen its financial position.

Earlier this month, Advance Auto closed a $1.5 billion sale of Worldpac, its automotive parts wholesale distribution business, to investment firm Carlyle, as part of its efforts to revamp its operations.

Advance Auto primarily operates in the U.S., with some corporate stores and independent locations in Canada, Mexico, and various Caribbean islands. As of October 5th, the company operated more than 4,780 stores and served 1,125 independently owned, Carquest-branded locations.

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The company's stock closed up less than 1% on Thursday, but it is down 33% year-to-date. The extensive store closures and reorganization signal a significant shift in the company's operations as its management strives to address the challenging market conditions and pursue strategic growth opportunities.