[Update as of Jan. 21, 2025] Hilco Real Estate will manage the disposition of more than 200 leased and 24 owned Advance Auto Parts locations across 46 states, consistent with the retailer’s downsizing strategy of operating fewer stores overall but more large-format stores. The 24 owned properties are located in marquee metro areas from coast to coast in 14 states.
Original story from Nov. 15, 2024 begins-
Following a fiscal Q3 that saw its net sales decline 3.2% compared to the same period the previous year, Advance Auto Parts (AAP) will close 523 corporate stores, exit 204 independent locations and shutter four distribution centers. As of Oct. 5, 2024, the auto parts retailer operated a total of 4,781 stores and serviced 1,125 independently operated Carquest stores.
AAP appears to be moving toward a footprint with fewer stores overall but with additional larger stores, such as the 45,000-square-foot “super hub” location it opened in Los Angeles in June 2022. APP is planning to open 60 of these market hub locations by mid-2027, as well as consolidating its distribution centers to 13 large facilities by 2026.
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AAP recently completed the sale of Worldpac, a wholesale distributor of auto parts, for approximately $1.5 billion. “We are pleased to have made progress on our strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of our business,” said Shane O’Kelly, President and CEO of AAP in a statement. “We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value.”
In its Q3, which ended Oct. 5, 2024, AAP generated $2.1 billion in net sales, down from the $2.2 billion in the previous Q3. Comparable store sales declined by 2.3%.
