(WKBN) – Advance Auto Parts executives announced Thursday that the company will be closing 523 corporate stores through 2027.
The company is working through a three-year plan to adjust its operations that includes the store closures, the closing of four distribution centers and the exiting of 204 independent store locations.
Even though the company plans to close stores, it also announced that it plans to accelerate the pace of new store openings, consolidate distribution centers to operate 13 large facilities by 2026 and open 60 market hub locations by mid-2027 in an effort to improve transportation routes and lower freight costs.
“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 President and CEO Shane O’Kelly.
Lower sales and higher labor costs are some reasons for the changes, among others. It also sold its Woldpac Inc., an automotive parts wholesale distribution business, for $1.5 billion to global investment firm Carlyle. The sale closed on Nov. 1, 2024.
The locations of the stores that would be closing were not released.
