Why Is Advance Auto Closing Stores Closures Explained

In recent months, customers and investors alike have noticed a growing number of Advance Auto Parts store closures across the United States. Once considered a reliable destination for automotive parts and DIY repairs, the company has begun shuttering underperforming locations, prompting questions about its long-term strategy and stability. The closures are not random but part of a broader corporate restructuring effort driven by shifting consumer behavior, financial pressures, and internal operational inefficiencies. This article examines the root causes behind these closures, analyzes their impact, and provides insight into what lies ahead for one of America’s most recognizable auto parts retailers.

Financial Performance and Declining Sales

At the heart of Advance Auto Parts’ decision to close stores is a sustained period of declining financial performance. Over the past three fiscal years, the company has reported shrinking same-store sales, reduced profit margins, and inconsistent revenue growth. In its 2023 annual report, Advance Auto disclosed a 4.2% year-over-year decline in comparable store sales, with net income dropping nearly 18% compared to the previous year. These figures reflect deeper structural issues within the business model.

The retail automotive aftermarket faces increasing competition from e-commerce platforms like Amazon, RockAuto, and even Walmart’s online arm, all offering faster delivery, lower prices, and broader inventories. Meanwhile, brick-and-mortar operations remain costly due to rent, staffing, and inventory management. For Advance Auto, maintaining hundreds of physical locations—many in low-traffic or saturated markets—has become financially unsustainable.

“Retailers anchored in physical locations must adapt quickly or face obsolescence. Advance Auto is reacting to a market that no longer rewards wide footprints without strong unit economics.” — Laura Simmons, Retail Industry Analyst at MarketPulse Insights

Strategic Shift: From Expansion to Optimization

For decades, Advance Auto pursued an aggressive expansion strategy, acquiring regional chains and opening new stores to increase market share. However, the tide turned after the failed integration of General Parts International (GPI) and the Carquest brand, which led to operational complexity and cultural misalignment. Instead of continuing to grow outward, the company has pivoted toward “store optimization”—a corporate term for closing unprofitable locations and reinvesting in high-performing ones.

This shift became official in early 2023 when CEO Gavin Taylor announced a multi-year transformation plan called “Drive to Win.” Key components include:

• Closing approximately 150–200 underperforming stores over two years
• Reducing overhead costs by $150 million annually
• Accelerating digital capabilities and e-commerce fulfillment
• Improving supply chain efficiency through warehouse automation

The goal is not just cost reduction but realigning the company with modern retail realities where convenience, speed, and omnichannel presence matter more than sheer store count.

Tip: If you're a customer near a closing location, check Advance Auto’s website for liquidation schedules and transfer options for special-order parts.

Changing Consumer Behavior and the DIY Dilemma

One often-overlooked factor behind the closures is the decline in do-it-yourself (DIY) car repair. Younger generations are less likely to perform their own maintenance, opting instead for professional service centers or newer vehicles with longer warranty periods. According to a 2023 study by the Auto Care Association, DIY participation has dropped from 58% in 2010 to just 42% in 2023.

This trend hits Advance Auto particularly hard because its core customer base has historically been older, mechanically inclined individuals who value hands-on repair. As this demographic ages and vehicle technology becomes more complex (especially with hybrid and electric models), fewer people feel confident tackling repairs themselves.

Meanwhile, competitors like AutoZone and O'Reilly Auto Parts have invested heavily in commercial sales—supplying mechanics and repair shops—which now account for over 50% of their revenue. Advance Auto lags behind, with commercial sales making up only about 37% of total revenue, limiting its ability to offset weakening DIY demand.

Real-World Impact: A Case Study from Ohio

In late 2023, Advance Auto closed its location on South Main Street in Akron, Ohio—a store that had operated for 22 years. Local customers expressed frustration, noting that the nearest remaining Advance Auto was now 12 miles away. Interviews with former employees revealed that sales had declined steadily since 2020, with monthly revenue falling below $80,000—well below the chain’s average of $140,000 per store.

Store manager Carla Mitchell shared: “We used to get steady walk-in traffic, especially on weekends. But over the last three years, people started calling ahead, ordering online, or just going to the mechanic directly. We couldn’t justify keeping the lights on.”

The Akron closure exemplifies a broader pattern: stores in mid-sized cities and suburban strips are increasingly vulnerable when foot traffic wanes and digital alternatives rise. While inconvenient for loyal customers, the move allowed Advance Auto to redirect resources toward distribution centers serving both retail and commercial clients more efficiently.

What’s Next? A Roadmap for Recovery

Advance Auto isn’t disappearing—it’s transforming. The company still operates over 4,700 stores and services more than 1.5 million customers weekly. To survive and eventually thrive, it must execute several key initiatives successfully:

1. Expand Commercial Sales: Invest in dedicated sales teams and tailored programs for repair shops and fleet operators.
2. Enhance Digital Experience: Improve mobile app functionality, offer same-day pickup, and integrate real-time inventory tracking.
3. Right-Size the Footprint: Continue evaluating store performance quarterly and close locations that fail to meet profitability thresholds.
4. Leverage Data Analytics: Use customer purchase history to personalize promotions and improve inventory accuracy.
5. Train Employees for New Roles: Shift focus from transactional service to technical support, helping customers choose correct parts using diagnostic tools.

Factor	Impact on Store Closures	Advance Auto’s Response
Declining DIY Demand	Lower foot traffic and reduced parts sales	Shift focus to commercial clients and technician support
Rising E-Commerce Competition	Price pressure and lost convenience advantage	Invest in faster online fulfillment and click-and-collect
Underperforming Locations	Drain on profits and resources	Close 150–200 stores by end of 2024
Supply Chain Costs	High logistics expenses for slow-moving inventory	Automate warehouses and optimize distribution

Frequently Asked Questions

How many Advance Auto stores are closing?

As part of its “Drive to Win” strategy, Advance Auto plans to close between 150 and 200 stores through 2024. The exact number may vary based on lease terms and local performance.

Will I still be able to return items if my local store closes?

Yes. Advance Auto honors returns at any location within 90 days of purchase, provided you have the original receipt. You can also contact customer service for mail-in return instructions if no nearby store is available.

Is Advance Auto going out of business?

No. While the company is closing some stores, it is not going out of business. It remains financially solvent and is actively restructuring to improve long-term sustainability.

Final Thoughts: Navigating Change in a Shifting Industry

The closure of Advance Auto stores is not a sign of imminent collapse but a necessary correction in response to evolving market dynamics. Like many traditional retailers, the company underestimated how quickly consumer habits and technology would reshape the automotive aftermarket. Now, it’s playing catch-up—streamlining operations, investing in digital infrastructure, and repositioning itself for a future where convenience and expertise matter more than proximity alone.

For customers, this means adapting to fewer physical locations but potentially better service when they do visit. For employees, it underscores the importance of flexibility and upskilling in a changing retail landscape. And for the company, success will depend on execution: closing the right stores, retaining loyal customers, and building a more agile, customer-centric model.

🚀 Stay informed and share your experience. Have you been affected by a store closure? Do you think Advance Auto can turn things around? Join the conversation and let others know what matters most to you as a customer or industry observer.