A Popular Auto Parts Chain Is Closing More Stores On The East Coast

Retail has suffered from a punishing year so far. Long-dominant national companies including JoAnn Fabrics, home decor and furniture seller Kirkland's, and clothing retailer Quicksilver have either suffered bankruptcy or been forced to close hundreds of stores in 2024 and 2025. Advance Auto Parts is the latest retail giant to reveal that it is struggling.

Advance Auto Parts is a huge national retail chain that made its market in selling car parts. Located not only across the United States, the company also has a large presence in Canada, Mexico, and a subsidiary company in the Caribbean. The firm recently announced that it will close 700 underperforming stores along with four distribution centers this year in 2025, according to Syracuse Business.

CEO and President Shane O'Kelly explained what the company's strategy is in the company's 2024 Q4 report. "During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation. 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."

Advance Auto Parts was founded in 1929. The Raleigh, North Carolina-headquartered corporation presently has over 4,700 stores in North America, including Canada, the U.S. Virgin Islands, and Puerto Rico. More than 200 of these outlets are in the state of New York alone. One of the leading aftermarket car parts providers, the company services both do-it-yourself customers and professional installers. It also operates 1,125 Carquest branded stores that are independently owned throughout the U.S., Mexico, and the Caribbean, according to Yahoo! Finance.

The company offers an enormous range of vehicle parts. Among these are batteries, brakes, hoses and belts, engine parts, exhaust system parts, radiators, alternators and starters, and alignment and steering parts. It also sells many accessories for car interiors and exteriors.

Advance Auto Parts has a range of additional services. The company employees install wipers and batteries. It also tests out electrical system components such as starters, batteries, and alternators. Employees offer oil recycling and loan out tools as part of the corporate programs.

The problems in Advance Auto Parts operations became evident in 2024. Fourth quarter results for the year showed total net sales of $2 billion. This was a decline of .9% versus the prior year results. The operating loss for the quarter amounted to $820 million, according to a press release.

This company's comparable store sales for the fourth quarter were down by a full percentage point. The true numbers were actually worse than this as they did not factor in comparable sales figures from the over 500 corporate store locations that the company is soon to close under the restructuring plan, per the results.

This month Advance Auto Parts announced the measures that it is taking to stop the financial bleeding. Besides shuttering around 500 of its corporate locations, the company will also close 200 other independently operated stores. It will simultaneously shut down four distribution centers before the middle of the year, according to Syracuse Business.