Advance Auto Parts to Close 727 Stores Following Quarterly Loss

Advance Auto Parts has announced a major restructuring plan, including closing 727 stores and several distribution centers, after a challenging third quarter.
Under the plan, the company will shutter 523 corporate-owned stores, exit 204 independently owned locations, and close four distribution centers by mid-2025. In addition to store closures, the restructuring includes job cuts, though specific numbers were not disclosed.
“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,” CEO Shane O’Kelly said in a statement.
The company also provided preliminary guidance for fiscal 2025, including projected net sales of $8.4–8.6 billion, with comparable sales growth of 0.5–1.5 percent. By fiscal 2027, Advance Auto Parts expects to achieve $9 billion in annual revenue and sustain low-single-digit percentage growth in comparable sales.
Advance Auto Parts is not alone in its decision to trim its footprint. Several companies across different sectors have recently announced plans to reduce their number of locations or staff as part of broader cost-cutting and restructuring efforts.