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Advance Auto Components is closing greater than 500 shops and shedding one other 200 impartial places as a part of its efforts to revive its struggling enterprise.
North Carolina-based Advance Auto mentioned Thursday that it will be lowering its U.S. footprint as a part of a “strategic plan to enhance enterprise efficiency.” The corporate mentioned it’s shuttering a complete of 523 of its Advance company shops, in addition to 4 distribution facilities, and exiting 204 impartial places by the center of subsequent 12 months.
Particular places and the variety of workers anticipated to be impacted was not instantly disclosed. A spokesperson for Advance Auto declined to remark additional.
Advance Auto nonetheless outlined some wider turnaround efforts in Thursday’s announcement. Regardless of these sizeable closures, the corporate famous targets like an “acceleration in tempo of latest retailer openings” and adopting a standardized working mannequin. And it pointed to supply-chain consolidation plans, noting that it anticipated to incur prices associated to changing sure shops and distribution facilities into “market hubs.”
Advance Auto on Thursday posted a lack of $6 million in its third quarter on income of $2.15 billion. The corporate additionally lowered its full-year income outlook for the second consecutive quarter.
The vendor of automotive batteries, motor oil and extra has seen some waning gross sales for the reason that begin of the 12 months, and is making efforts to spice up its steadiness sheet. Earlier this month, the corporate closed a $1.5 billion sale of Worldpac, its automotive elements wholesale distribution enterprise, to funding agency Carlyle.
Advance Auto primarily operates within the U.S., but additionally has some company shops and impartial places in Canada, Mexico and varied Caribbean islands. As of Oct. 5, Advance Auto operated greater than 4,780 shops and served 1,125 independently owned, Carquest-branded places.
Shares of the corporate closed up lower than 1% Thursday, however the inventory is down 33% 12 months to this point.