This week, Advance Auto Parts revealed plans to shut down hundreds of stores, four distribution centers, and reduce staff due to a decline in demand for auto parts.

The company shared this news while releasing its third-quarter earnings report, which indicated an adjusted loss of 4 cents per share, a significant improvement from the $1.19 loss experienced the previous year.

Despite a gross profit increase of 11% in the third quarter compared to last year, the growth was much lower than the nearly 37% increase recorded in the same quarter last year. Executives announced that this decline in profitability necessitates the closure of over 700 store locations by mid-2025.

During a call with analysts following the earnings release, Advance Auto Parts executives mentioned that external factors, such as hurricanes and a CrowdStrike outage, also affected their quarterly performance, as reported by Reuters.

With a noticeable drop in customers choosing to repair their vehicles, the company is planning to launch a new three-year financial strategy aimed at revitalizing its struggling operations.

What is the total number of Advance Auto Parts stores?

Based in Raleigh, North Carolina, Advance Auto Parts operates over 4,700 stores across the United States, Canada, Puerto Rico, and the U.S. Virgin Islands. The company also supports 1,125 independently owned Carquest-branded stores in these regions, along with locations in Mexico and some Caribbean islands.

“We are pleased with the progress made in our strategic initiatives, including completing the sale of Worldpac and conducting a thorough operational productivity review,” Shane O’Kelly, president and CEO, stated on Thursday. “We are establishing a clear path forward with a new three-year financial plan, concentrating on core retail essentials to enhance all our assets’ productivity and provide greater value for shareholders.”

On November 1, 2024, the company finalized the sale of Worldpac for approximately $1.5 billion.

What is the expected job loss at Advance Auto Parts?

The company did not specify the number of jobs that would be cut or which specific positions would be affected.

YSL News has attempted to contact Advance Auto Parts for clarification.

How many Advance Auto Parts locations are being shut down?

According to a regulatory filing, Advance Auto Parts plans to close 523 corporate locations while also closing 204 independent stores, in addition to shutting down four distribution centers.

The specific locations of these closures have not been announced.