Advance Auto Parts, one of the largest automotive parts retailers in the U.S., announced plans to shutter more than 500 stores and exit 204 independent locations by mid-2025 as part of a sweeping restructuring effort. The news leaves questions about the future of the company’s store at 170 Portland Way North in Galion, with no details yet revealed on which locations will close.

Restructuring Plans Include Major Closures and Job Cuts

The company is set to close 523 corporate stores and four distribution centers as part of its efforts to cut costs and improve financial performance, according to a report by Reuters. The move also includes exiting 204 independently owned locations.

Advance Auto operates over 4,780 stores and serves an additional 1,125 independently owned, Carquest-branded locations across the U.S., Canada, Mexico, and the Caribbean. The company is taking these steps as it faces declining sales and financial challenges, including a reported third-quarter loss of $6 million on revenue of $2.15 billion.

Earlier this month, Advance Auto sold its Worldpac wholesale distribution business to Carlyle, an investment firm, for $1.5 billion in an effort to bolster its financial position.

Ohio’s Advance Auto Stores: Will They Be Affected?

Ohio is home to over 200 Advance Auto Parts locations, with significant concentrations in Columbus (19 stores), Cincinnati (8 stores), Cleveland (5 stores), and Akron and Canton (4 stores each). Despite the scale of the closures, Advance has yet to release specific details about which stores will be impacted.

For now, the fate of Ohio’s stores, including the Galion location, remains uncertain. Customers can check the status of their local stores by using the company’s online store locator.

Financial Challenges Driving Change

Advance Auto has faced mounting challenges in 2024, reporting disappointing earnings and cutting its revenue outlook for the second consecutive quarter. The company’s struggles reflect broader headwinds in the automotive parts retail industry, including increased competition and evolving consumer behaviors.

In a bid to stabilize its operations, Advance Auto is focusing on cost reductions and streamlining its operations. However, these changes have yet to reverse its fortunes, with the company’s stock down 33% year to date.

A Glance at Advance Auto’s Current Operations

Advance Auto primarily operates in the United States but also has corporate stores and independent locations in Canada, Mexico, and the Caribbean. As of October 5, the chain operated 4,776 stores and 321 Worldpac branches, along with serving independent Carquest locations.

The restructuring marks a pivotal moment for the company as it seeks to regain its footing in a competitive market.

Source: Wire Reports; Image by Dibyendu Joardar from Pixabay