A popular retailer plans to open 100 US stores despite closing over 700 locations nationwide.
Advance Auto Parts will open at least 100 new stores nationwide through 2027.
The first 30 locations will open in the US this year.
Advance Auto Parts has already opened six new stores in Florida, New Jersey, Tennessee, and Virginia this year.
It will expand to other states over the next several months, including Illinois, Maryland, Ohio, and Wisconsin.
The company announced plans to open larger stores in the Midwest, aiming to enhance service speed by offering same-day delivery of parts and increasing product availability.
Shane O’Kelly, the president and CEO, stated, ‘Advance Auto Parts is focused on boosting store growth and reinforcing the core principles of auto parts sales.’
‘Our team members are committed to providing the right parts and the right service for our PRO and DIY customers in their communities.’
Advance Auto Parts plans to open at least 100 locations nationwide through 2027 despite closing over 700 stores
Advance Auto Parts’ store closures were part of a restructuring plan that began in 2024.
The company revealed the plan was put in place to help improve its business performance and ‘focus on core retail improvements.’
The company’s 2024 third-quarter earnings report outlined opportunities identified to potentially enhance adjusted operating income margin by over 500 basis points by fiscal 2027.
‘This strategic plan is anchored on three pillars outlined below to put the company on the path to deliver consistent profitable growth.’
Approximately 523 Advance corporate stores, 204 independent locations, and four distribution centers permanently closed by March.
The announcement came after the North Carolina-based company announced a $6 million loss during its third quarter.
It also lowered its 2024 full-year outlook for the second quarter in a row.
Besides restructuring, Advance Auto Parts closed a $1.5 billion sale of its distribution business Worldpac to Carlyle investment firm to boost profits.
Advance Auto Parts’ closures were part of the company’s restructuring plan that began in 2024
Advance Auto Parts announced it earned $2 billion in net sales during its 2024 fourth quarter, a 0.9 percent decrease from its 2023 results.
Its comparable sales were lower compared to its 2023 fourth quarter.
Regarding its full-year revenue, the company confirmed it made around $9.1 billion in net sales, a 1.2 percent decrease from 2023.
Despite the decline, Advance Auto Parts is not worried.
‘We ended 2024 with a healthy balance sheet and strong liquidity to navigate our turnaround,’ Kelly said in the February 26 report.
‘The team is acutely focused on execution and driving stronger accountability.’
Kelly continued by saying Advance Auto Parts is continuing to work on achieving its goal of having a 7 percent adjusted operating margin by 2027.
The company revealed it’s expecting to earn $2.5 billion in net sales and suffer another decline in comparable sales during this year’s first quarter.
Advance Auto Parts is expecting to earn $2.5 billion in net sales during its 2025 first quarter
Advance Auto Parts is continuing to work on achieving its goal of having a 7 percent adjusted operating margin by 2027
Advance Auto Parts is one of multiple companies that have opted to close hundreds of stores.
US retailers closed over 7,300 stores partly because of inflation and its competition with online shopping in 2024.
Macy’s is one of those chains that has suffered multiple sales slumps, and confirmed 66 of its 150 store closures will happen this year as part of its ‘Bold New Chapter’ strategy.
Other retailers, such as Joann and Party City were not able to bounce back from bankruptcy and decided to close all their locations.
Forever21 is one of the latest store chains to fall from grace after announcing its plan to shut down its US operations this year.
Advance Auto Parts is continuing to operate over 4,000 locations worldwide.
