Auto parts retailer with 110 stores in NJ to close hundreds of locations

💲Advance Auto Parts will close a total of 700 stores nationwide

💲No specific locations have been announced

💲There are 110 Advance locations in New Jersey

A national auto parts chain is the latest retailer with a strong presence in New Jersey to announce plans to close hundreds of locations.

In its third quarter earnings report, Advance Auto Parts CEO and President Shane O'Kelly said the company is looking to improve future earnings by focusing on improving its core retail business.

O'Kelly believes the company can lead itself to consistent profitable growth by closing 523 "non performing, non-strategic" Advance corporate stores, shuttering 204 independent locations, and closing four distribution centers. The chain also plans to open new stores.

Earlier this month, the company closed a $1.5 billion sale of Worldpac, its automotive parts wholesale distribution business, to investment firm Carlyle.

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Not an easy decision

O'Kelly said the stores will close by mid-2025 but their locations were not disclosed. Their closure will save the company $60-80 million. Advance will redesign the operating structure of the remaining stores with better recruitment, less paperwork for managers and adopting a better scheduling system.

"Making the decision to close such a meaningful percentage of our store base was not an easy one as it affects a significant number of our team members. However, we believe this action is prudent to support the long-term health of the company," O'Kelly said during the meeting, adding that he did not know how many employees would lose their job.

There are 110 Advance Auto parts in New Jersey, according to its website.

CVS, Family Dollar, Macy's, Rite Aid, Sam Ash, Stop and Shop and Walgreen's are among the retailers who have closed New Jersey locations in 2024.

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