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North Carolina-based Advance Auto said Thursday that it would be
reducing its U.S. footprint as part of a “strategic plan to
improve business performance.” The company said it is shuttering
a total of 523 of its Advance corporate stores, as well as four
distribution centers, and exiting 204 independent locations by
the middle of next year.
Specific locations and the number of employees expected to be
impacted was not immediately disclosed. A spokesperson for
Advance Auto declined to comment further.
Advance Auto still outlined some wider turnaround efforts in
Thursday's announcement. Despite these sizeable closures, the
company noted goals like an “acceleration in pace of new store
openings” and adopting a standardized operating model. And it
pointed to supply-chain consolidation plans, noting that it
expected to incur costs related to converting certain stores and
distribution centers into “market hubs.”
Advance Auto on Thursday posted a loss of $6 million in its
third quarter on revenue of $2.15 billion. The company also
lowered its full-year revenue outlook for the second consecutive
quarter.
The seller of car batteries, motor oil and more has seen some
waning sales since the start of the year, and is making efforts
to boost its balance sheet. Earlier this month, the company
closed a $1.5 billion sale of Worldpac, its automotive parts
wholesale distribution business, to investment firm Carlyle.
Advance Auto primarily operates in the U.S., but also has some
corporate stores and independent locations in Canada, Mexico and
various Caribbean islands. As of Oct. 5, Advance Auto operated
more than 4,780 stores and served 1,125 independently owned,
Carquest-branded locations.
Shares of the company closed up less than 1% Thursday, but the
stock is down 33% year to date.
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