advanced auto parts plans to close more than 500 stores and cut an additional 200 independent locations as part of an effort to turn around its struggling business.
North Carolina-based Advance Auto announced Thursday that it will reduce its U.S. footprint as part of a “strategic plan to improve our business results.” The company announced that it will close a total of 523 corporate Advance stores and four distribution centers and withdraw from 204 independent stores by the middle of next year.
The specific locations and number of employees expected to be affected were not immediately disclosed. An Advance Auto spokesperson declined further comment.
Advance Auto also outlined a broader turnaround effort in Thursday’s announcement. Despite these large-scale closures, the company has stated goals such as “accelerating the pace of new store openings” and adopting a standardized operating model. The company also cited its supply chain consolidation plans, noting that it expects to incur costs associated with converting certain stores and distribution centers into “market hubs.”
Advance Auto on Thursday posted a loss of $6 million in the third quarter on revenue of $2.15 billion. The company also lowered its full-year sales forecast for the second consecutive quarter.
The company, which sells automobile batteries and motor oil, has seen a slight decline in sales since the beginning of the year, and is working to expand its balance sheet. Earlier this month, the company completed the $1.5 billion sale of its auto parts wholesale business Worldpac to investment firm Carlyle.
Advance Auto operates primarily in the United States, but also has several corporate stores and independent locations in Canada, Mexico, and various islands in the Caribbean. As of October 5, Advance Auto operated more than 4,780 stores and serviced 1,125 independently owned Carquest brand stores.
The company’s shares were down less than 1% at Thursday’s close, but are down 33% year-to-date.
