Advance Auto Parts says it will close 523 corporate stores, 204 independently owned locations and four distribution centers by mid-2025 as it works to improve its business outlook.
The company plans to standardize its store operating model and improve labor productivity.
Despite the announced closures, it says it hopes to accelerate the pace of new store openings.
“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, president and chief executive officer.
The company says it has completed its sale of Worldpac on Nov. 1 for approximately $1.5 billion.
The latest earnings report showed comparable store sales decreased 2.3% in the thrid quarter over last year and net sales dropped from $2.2 billion to $2.1 billion.
The company blamed lost revenue on Hurricane Helene and downtime from the CrowdStrike internet outage.
The company’s gross profit did increase 11% to $907.9 million.
Net cash provided by operating activities was $81.0 million through the third quarter of 2024 versus $28.3 million of cash used in operating activities in the same period of the prior year.
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