The announcement follows a disappointing third quarter
of ConsumerAffairs
Despite government data showing a strong economy, many retailers are struggling, just like their customers. The latest retailer to announce plans to shutter some of its stores is Advance Auto Parts.
As it reported third quarter earnings, the company said it would close more than 700 of its stores. Among those targeted for closing are 523 company-owned stores and 204 that are owned by franchisees.
The retail auto parts sector has plenty of competition and the third quarter financial report suggests Advance Auto is falling behind. Third quarter 2024 net sales from continuing operations totaled $2.1 billion, compared with $2.2 billion in the third quarter of the prior year. Comparable store sales decreased 2.3%.
Advance Auto CEO Shane OKelly gave an upbeat assessment, saying the company is making progress on its strategic actions, including the completion of the sale of Worldpac and a comprehensive operational productivity review of the business.
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," OKelly said.
Advance Auto joins some other retail names that have announced store closings this year. Big Lots has filed for bankruptcy and is closing some of its stores. Walgreens recently announced it would close 1,200 stores. Even 7-Eleven is closing 444 stores.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-15 14:43:54
