Advance Auto Parts said Thursday it will close about 500 stores by mid-2025 and cut some jobs under a restructuring effort, as demand for vehicle parts takes a hit from fewer consumers opting to repair their cars.
The automotive industry has had a difficult second half of the year, burdened by inflationary headwinds and stiff competition from Chinese automakers putting out affordable yet feature-packed vehicles.
Auto suppliers such as Aptiv PLC and BorgWarner cut their annual sales forecasts last month on expectations of lower vehicle production as consumers cut back on purchases.
On a post-earnings call with analysts, Advance Auto Parts executives told analysts its quarterly results were impacted by lower consumer spending, hurricanes and the CrowdStrike outage.
Separately, the company in a regulatory filing said it was planning to close 523 corporate stores, exit 204 independent locations and shutter four distribution centers by mid-2025.
It also flagged headcount reductions, but did not provide any further details. Advanced Auto Parts did not immediately respond to a Reuters request for comment.
