Advance Auto Parts Is Closing 727 Stores, 4 Distribution Centers to Stay Afloat

The ubiquitous Advance Auto Parts will be less so in the next couple of years. The automotive parts retailer will shutter more than 700 locations by 2027. The move is part of an adjusted business plan following another disappointing earnings report.

According to a press release, although third-quarter gross profits increased by 11 percent, operating expenses also increased while net sales were down for the Raleigh, North Carolina-based auto aftermarket parts giant. Advance reported previous earnings as flat in Q2 and down in Q1.

“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 and to create shareholder value,” said Shane O’Kelly, Advance Auto Parts president and chief executive officer.

According to CNN, this is the second quarter in a row that Advance has lowered its full-year profit outlook. After its latest earnings report, Advance Auto Parts shares slid by 5 percent.

As part of its “strategic plan to improve business performance” that will be implemented through fiscal year 2027, Advance looks to reduce its U.S. retail footprint. This includes closing 523 corporate stores, withdrawing from 204 independent locations, and shutting down four distribution centers. The supply chain will be further optimized by consolidating distribution centers into 13 large facilities by 2026 and opening 60 market-hub locations by mid-2027.

Founded in 1932, Advance operates 4,781 Advance Auto Part stores in the U.S. and serves 1,125 Carquest locations, which are independently owned. Advance has additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands, while Carquest brand stores are in Mexico and various Caribbean Islands. These numbers were accurate as of October 5, 2024.

Advance has not released which locations are slated for closure.

One of the leading retailers in the automotive aftermarket space, Advance Auto Parts provides parts and services to professional installers and do-it-yourselfers—from batteries and brakes to car wash supplies and air fresheners. The company also dabbled in motorsports, having sponsored NHRA Funny Car teams in the past. Last year, Advance became the official sponsor of the IndyCar checkered flag. Yes, just the flag. The IndyCar flag sponsorship will last through the 2025 racing season.