According to The Sun , Advance Auto Parts, a major auto retailer, has announced plans to close over 700 locations in the coming months as part of a strategy to boost sales and adapt to shifting consumer habits. Shane O’Kelly, President and CEO of Advance Auto Parts, revealed the mass closure plan during a discussion of the company’s third-quarter results. He explained that the closures are integral to a new three-year financial strategy aimed at improving business performance and increasing shareholder value.
The closures will affect both corporate and independent stores, with 523 corporate locations, 204 independent stores, and four distribution centers set to shut down. While the exact locations have not been disclosed, Florida is expected to bear the brunt of the closures, with 522 stores closing. Several other states, including Georgia, North Carolina, New York, Ohio, Pennsylvania, Texas, and Virginia, are also facing significant shutdowns.
In addition to the store closures, Advance Auto Parts is updating its operating model. The company plans to improve “labor productivity” by introducing a new “market hub” format. This includes the opening of at least 60 new market hub locations by mid-2027, which will help offset some of the closures.
The announcement comes after Advance Auto Parts lowered its financial outlook for the year, citing the ongoing challenges faced by consumers in an uncertain economic climate. Despite this, the company recently made a $1.5 billion sale of its auto parts wholesaler division, Worldpac.
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This move follows a larger trend in retail, with many companies shutting down locations in 2024. Big Lots, for example, closed over 500 stores as part of its Chapter 11 bankruptcy filing. Similarly, clothing retailers like Express and Rue21 filed for bankruptcy and closed hundreds of stores. Walgreens also shuttered about 1,200 locations to streamline operations and cut costs. Even well-known restaurant chains like Red Lobster and TGI Friday’s have been affected, with Red Lobster filing for bankruptcy and closing 100 locations before being rescued by investors.
The wave of closures across various sectors reflects ongoing changes in consumer behavior and broader economic challenges.
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