Many of the Advance Auto Parts stores have closed down for good in the United States. The former major auto parts store chain in the country has decided to announce a restructuring plan that will take 700 stores with it. We will tell you below what is happening with this classic.
What is Advance Auto Parts?
Founded in 1932, a company that has specialized for years in the sale of parts, batteries, oils, tools and accessories for the maintenance and repair of vehicles. Useful for both individual customers and mechanics and professionals in the automotive industry.
What is happening with its stores?
The chain has announced the closure of many stores, over 700, throughout the United States, of which 200 are in New York, but, for now, the full list is not public yet. In addition, they will also close four distribution centres, leaving thousands of employees and customers who depend on these businesses to find spare parts for their cars in the air. It seems like a horror movie, but is it a business strategy?
Why are they closing their stores?
Advance Auto Parts’ accounts are not in the best moment, as the company reported a loss of 6 million dollars in its third quarter and its revenues fell to 2.15 billion dollars… It is logical that the company has had to adjust its salary expectations and they have also announced that the annual income will be lower than expected.
Trying to mitigate the effects of this fall, the company sold its wholesale unit Worldpac to Carlyle for 1.5 billion dollars. Although this gave it some financial breathing room, it was not enough to avoid massive store closures. Now, the big question is whether this sale will help stabilize the company or if it is just a temporary patch.
Which stores are closing?
The New York State stores that have been forced to close their doors are as follows.
- Buffalo – 1833 Elmwood Ave.
- Port Chester – 10 Mill St
- Rochester – 1028 N Clinton Ave
- Rochester – 1460 W Ridge Rd
- Schenectady – 1225 Curry Rd
- Staten Island – 2060 Forest Ave
What will happen to the workers?
As you can see, closing 700 stores is not just a number: it means that thousands of workers will lose their jobs…. And, although the company has not given exact figures for layoffs, the impact on many communities and families will be too strong.
For customers, this is also a problem. Fewer stores mean fewer options to find spare parts, batteries and other essential products for the maintenance of our cars. This could give an advantage to its main competitors, AutoZone and O’Reilly Auto Parts, which continue to grow in the market while Advance Auto Parts seems to fade away…
Surviving in the retail sector is very difficult, and when it comes to the car market… everything becomes even more difficult. Although Advance Auto Parts assures that it is a necessary restructuring and that it is only a response to economic interests, many of us doubt whether they will be able to recover or if this is simply the beginning of their decline…
While the doubts are dispelled, we cannot forget that thousands of employees face a very uncertain future, and that millions of customers will have to look for new options (or take longer trips) to keep their vehicles in good condition.
Time will tell whether this change works or if we are just facing another company that has not been able to read the changes in the market…