Advance Auto Parts is pressing forward with its plan to close hundreds of stores and distribution centers in 2025, the company confirmed in a press release. This follows its initial announcement of the closures in November 2024.
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During an earnings call last week, Advance Auto Parts reiterated its commitment to shuttering approximately 500 corporate stores, 200 independent locations, and four distribution centers by mid-2025. These actions are part of a broader "restructuring plan" announced last year.
"During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation," said Shane O'Kelly, president and CEO, in a statement.
The company aims to improve business performance by focusing on "core retail improvements" and pursuing "consistent profitable growth." The restructuring plan also includes consolidating its distribution centers, with plans to operate 12 larger facilities by the end of 2026. Additionally, Advance Auto Parts intends to open 60 new market hub locations by mid-2027 and accelerate the pace of new store openings.
However, the news triggered a sharp decline in Advance Auto Parts' stock. Last week, shares had fallen by about 18%, following the company's 2025 sales guidance, according to The Motley Fool.
Though the exact number of stores already closed remains unclear, customers can use the store locator on the company's website for up-to-date information on specific locations. In its fourth-quarter report, Advance Auto Parts disclosed that it had closed 40 locations, including both Advance Auto Parts and Carquest stores, during the 52-week period ending December 28. Over the same period, 42 new stores were opened.
Company Shuts Down Distribution Centers
In January, Advance Auto Parts enlisted Hilco Real Estate to manage the sale of more than 200 leased locations and 24 owned properties, including potential redevelopment sites. Steve Madura, senior vice president of Hilco, said the closures are focused on stores deemed "duplicative, redundant, or surplus" to other locations. Some closures, Madura added, will involve exiting certain West Coast markets entirely.
Hilco is now listing the 24 properties owned by Advance Auto Parts across 14 states. These properties are available for sale either individually or as part of a larger package.
Advance Auto Parts, headquartered in Raleigh, operates over 4,700 stores across the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands. Additionally, the company serves 1,125 independently owned Carquest-branded stores, including locations in Mexico and the Caribbean.
In a regulatory filing, Advance Auto Parts stated its plans to close 523 corporate stores, exit 204 independent locations, and shut down four distribution centers.
