Headlines reading “Advance Auto Parts closing 700+ locations” have been making the rounds, and it’s easy to see why people are worried. But there’s a big difference between closing stores and going out of business. These are not the same thing, and the distinction matters a lot.
This article breaks down what is actually happening — why the closures are happening, which locations are affected, and whether the company has a real path forward.
Advance Auto Parts Is Not Going Out of Business — Here Is What Is Happening
Let’s get this out of the way first: Advance Auto Parts is not shutting down. The company operates over 4,700 stores across the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands. That is not a company on its last legs.
What is happening is a significant restructuring. The company is closing approximately 523 corporate stores, exiting around 204 independent and franchise locations, and shutting 4 distribution centers — all targeted to be completed by mid-2025. That adds up to the “700+” number you’ve seen in the headlines.
Put in context, 523 corporate closures represent about 10 to 11 percent of the corporate store network. That’s meaningful, but it is not a collapse. It’s a deliberate cut.
There’s also an important detail buried in that “700+” figure. The 204 independent locations are Carquest franchise operators who are leaving the Advance brand. In many cases, those stores are not shutting their doors — they’re just no longer operating under the Advance Auto Parts name. So the actual number of stores going dark is lower than headlines suggest.
Think of it like pruning a tree. You cut the weak branches not because the tree is dying, but because you want it to grow stronger. That’s the logic behind what Advance is doing right now.
Why Advance Auto Parts Is Closing So Many Stores
The short version: too many stores, not enough profit.
The company posted a quarterly loss and missed analyst revenue expectations heading into 2025. Consumer demand has been sluggish, and margin pressure has made a large chunk of the store network unprofitable. When you’re running locations that cost more to operate than they bring in, something has to give.
Management has set a clear target: improve adjusted operating income margin by more than 500 basis points by fiscal 2027. That’s an ambitious goal, and store closures are a central part of achieving it. You can’t improve margins while keeping unprofitable stores open.
The company also made a major move in August 2024 by selling its Worldpac division to private equity firm Carlyle for approximately $1.5 billion. Worldpac was a non-core asset, and selling it gave Advance cash to reduce debt and sharpen its focus. That’s not the behavior of a company preparing to fold — it’s the behavior of a company trying to fix itself.
Online competition has also played a role. Amazon Automotive, eBay Motors, and CarParts.com have all pulled DIY customers away from physical stores. The entire brick-and-mortar auto parts segment is under pressure, not just Advance. But Advance had more exposure than some of its competitors because of an oversized and uneven store network.
Which Stores Are Closing and Where
The closures are not spread evenly across the country. The West Coast is taking the biggest hit.
Advance Auto Parts is exiting California entirely — that’s approximately 139 locations gone. Oregon and Washington are also being abandoned. The company is pulling out of these western markets to concentrate resources on eastern U.S. states where it has historically performed better.
If you’re in California, you will lose access to every local Advance Auto Parts store. That’s a complete exit from the state, not just a trimming. Customers there will need to look at O’Reilly Auto Parts, AutoZone, NAPA, or online options going forward.
If you’re in Ohio, the situation looks different. You might see a nearby store close, but the company is still active in your state and, as you’ll see in the next section, even opening new locations there.
A few important caveats on the numbers: exact counts vary slightly depending on the source and timing. Some reports say 500 corporate closures, others say 523. Some say 200 independent exits, others say 204. Treat all figures as approximate based on current filings. The company’s own store locator is the best tool to check whether your specific location is affected.
The Company Is Still Opening New Stores
Here’s the part that doesn’t make headlines: Advance Auto Parts is not only closing stores. It’s also opening new ones.
Even while executing hundreds of closures, the company announced plans to open approximately 30 new stores in select markets. Those new locations are going into states where the company sees stronger performance — Ohio, Virginia, Maryland, Illinois, Florida, and Wisconsin.
Over the 52-week period ending December 2024, the company closed 40 locations but also opened 42. The network is being reshaped, not wound down.
This matters because it changes the story entirely. A company that’s truly going out of business doesn’t open 30 new stores. It stops investing. Advance is still investing — just in different places and with a tighter focus.
What This Means for Customers and Employees
If your local store is closing, here’s what to expect practically:
- Clearance sales: Closing stores typically run discounts as they wind down inventory. If you need parts, it’s worth checking in-store before they shut.
- Rewards and warranties: Check the company’s website or customer service line for guidance on existing Speed Perks rewards balances and any active warranties. These policies can change during restructurings.
- Alternatives: AutoZone, O’Reilly Auto Parts, and NAPA are the main brick-and-mortar competitors. For online shopping, Amazon Automotive, RockAuto, and CarParts.com are solid options depending on what you need.
For employees, the closures mean real job losses. The company confirmed workforce reductions as part of the restructuring. If you work at an affected store, it’s worth contacting HR directly about severance, transfer options, and timelines rather than waiting for secondhand information.
For independent Carquest operators exiting the brand, the situation is different. These are franchise or independently-run stores leaving the Advance network. Some may rebrand, others may close. Each situation will vary, so customers of those locations should reach out directly to find out what that specific store plans to do.
Does Advance Auto Parts Have a Real Path Forward?
That’s the honest question worth asking. Restructuring plans don’t always work. Closing stores improves margins on paper, but only if the remaining stores can grow and perform.
The case for optimism: the company has a leaner cost structure coming out of this, a $1.5 billion asset sale behind it, and a more focused geographic footprint. It still has thousands of stores in markets where it competes well. The 500+ basis point margin improvement target for 2027 is ambitious but not implausible if execution holds.
The case for caution: online competition is not going away. Consumer spending on auto parts can be unpredictable, and the company has already missed revenue expectations. Turning around a business this size takes time, and there’s no guarantee the remaining store network will generate the results management is projecting.
For a more detailed breakdown of retail business turnarounds and what to watch for, DailyBizNotes covers business strategy and market trends across industries.
The Bottom Line
Advance Auto Parts is not going out of business. It is going through a serious, painful restructuring that will result in hundreds of store closures, significant job losses, and a much smaller geographic footprint — especially on the West Coast.
The “700+ closures” headline is technically accurate but misleading without context. It includes franchise exits that don’t necessarily mean physical store closures. It represents about 10 to 11 percent of the corporate network. And it’s happening alongside new store openings and a major asset sale designed to strengthen the business.
Whether the turnaround works is a separate question. But as of now, this is a company trying to fix itself — not one preparing to disappear.
If you have a local store, check the company’s store locator or call ahead. Don’t assume your location is closing just because you saw a headline. And if it is closing, plan ahead for alternatives before inventory runs out.
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