Advance Auto Parts Opening New Stores After Completing Strategic Optimization of U.S. Retail Footprint
Advance Auto Parts (NYSE: AAP) has completed its store closure phase and is entering a growth phase, announcing plans to open 30 new locations in 2025 and at least 100 additional locations through 2027. The company has already opened six new stores in Florida, New Jersey, Tennessee and Virginia this year.
The optimization has resulted in over 75% of stores now holding #1 or #2 market positions based on store density. The expansion includes larger 'market hubs' carrying 75,000-85,000 SKUs, significantly more than typical stores' 20,000-25,000 SKUs, enabling improved same-day delivery service.
The company is also investing in enhancing customer experience through IT infrastructure, equipment, store repairs, improved inventory, delivery systems, and additional team member training.
Advance Auto Parts (NYSE: AAP) ha completato la fase di chiusura dei negozi e sta entrando in una fase di crescita, annunciando piani per aprire 30 nuove sedi nel 2025 e almeno 100 sedi aggiuntive entro il 2027. L'azienda ha già aperto sei nuovi negozi in Florida, New Jersey, Tennessee e Virginia quest'anno.
Questa ottimizzazione ha portato a oltre il 75% dei negozi che ora occupano le posizioni di mercato #1 o #2 in base alla densità dei negozi. L'espansione include 'hub di mercato' più grandi che offrono 75.000-85.000 SKU, significativamente più rispetto ai 20.000-25.000 SKU dei negozi tipici, consentendo un miglior servizio di consegna nello stesso giorno.
L'azienda sta anche investendo nel miglioramento dell'esperienza del cliente attraverso l'infrastruttura IT, attrezzature, riparazioni dei negozi, miglioramento dell'inventario, sistemi di consegna e formazione aggiuntiva per i membri del team.
Advance Auto Parts (NYSE: AAP) ha completado su fase de cierre de tiendas y está entrando en una fase de crecimiento, anunciando planes para abrir 30 nuevas ubicaciones en 2025 y al menos 100 ubicaciones adicionales hasta 2027. La compañía ya ha abierto seis nuevas tiendas en Florida, Nueva Jersey, Tennessee y Virginia este año.
La optimización ha dado como resultado que más del 75% de las tiendas ahora ocupen las posiciones de mercado #1 o #2 según la densidad de tiendas. La expansión incluye 'centros de mercado' más grandes que manejan 75,000-85,000 SKU, significativamente más que los 20,000-25,000 SKU de las tiendas típicas, lo que permite un mejor servicio de entrega el mismo día.
La empresa también está invirtiendo en mejorar la experiencia del cliente a través de la infraestructura de TI, equipos, reparaciones de tiendas, mejora del inventario, sistemas de entrega y formación adicional para los miembros del equipo.
Advance Auto Parts (NYSE: AAP)는 매장 폐쇄 단계를 완료하고 성장 단계에 진입했으며, 2025년에 30개의 새로운 매장을 열 계획과 2027년까지 최소 100개 이상의 추가 매장을 열 계획을 발표했습니다. 회사는 올해 플로리다, 뉴저지, 테네시, 버지니아에 6개의 새로운 매장을 이미 열었습니다.
이 최적화로 인해 75% 이상의 매장이 이제 매장 밀도에 따라 #1 또는 #2 시장 위치를 차지하게 되었습니다. 확장은 75,000-85,000 SKU를 보유한 더 큰 '시장 허브'를 포함하여, 일반 매장의 20,000-25,000 SKU보다 상당히 많아 당일 배송 서비스가 개선되었습니다.
회사는 IT 인프라, 장비, 매장 수리, 재고 개선, 배송 시스템 및 추가 팀원 교육을 통해 고객 경험을 향상시키는 데에도 투자하고 있습니다.
Advance Auto Parts (NYSE: AAP) a terminé sa phase de fermeture de magasins et entre dans une phase de croissance, annonçant des projets d'ouverture de 30 nouveaux points de vente en 2025 et d'au moins 100 points de vente supplémentaires d'ici 2027. L'entreprise a déjà ouvert six nouveaux magasins en Floride, au New Jersey, au Tennessee et en Virginie cette année.
Cette optimisation a permis à plus de 75 % des magasins d'occuper désormais les positions de marché #1 ou #2 en fonction de la densité des magasins. L'expansion comprend des 'hubs de marché' plus grands portant 75 000 à 85 000 SKU, ce qui est significativement plus que les 20 000 à 25 000 SKU des magasins typiques, permettant ainsi d'améliorer le service de livraison le jour même.
L'entreprise investit également dans l'amélioration de l'expérience client grâce à l'infrastructure informatique, aux équipements, aux réparations de magasins, à l'amélioration des stocks, aux systèmes de livraison et à la formation supplémentaire des membres de l'équipe.
Advance Auto Parts (NYSE: AAP) hat die Phase der Schließung von Filialen abgeschlossen und tritt nun in eine Wachstumsphase ein, indem sie Pläne ankündigt, 30 neue Standorte im Jahr 2025 und mindestens 100 zusätzliche Standorte bis 2027 zu eröffnen. Das Unternehmen hat in diesem Jahr bereits sechs neue Geschäfte in Florida, New Jersey, Tennessee und Virginia eröffnet.
Die Optimierung hat dazu geführt, dass über 75% der Geschäfte nun die Marktpositionen #1 oder #2 basierend auf der Filialdichte einnehmen. Die Expansion umfasst größere 'Markthubs', die 75.000-85.000 SKUs führen, was erheblich mehr ist als die typischen 20.000-25.000 SKUs der Geschäfte und einen verbesserten Lieferservice am selben Tag ermöglicht.
Das Unternehmen investiert auch in die Verbesserung des Kundenerlebnisses durch IT-Infrastruktur, Ausrüstung, Geschäftsanpassungen, verbesserte Bestände, Liefersysteme und zusätzliche Schulungen für Teammitglieder.
- Completed store optimization phase, strengthening market position
- Aggressive expansion plan with 130+ new stores through 2027
- Enhanced parts availability through larger market hubs (75,000-85,000 SKUs)
- 75% of stores now hold #1 or #2 market positions
- Investment in IT infrastructure and store improvements
- Recent store closure phase indicates previous network inefficiencies
- Significant capital expenditure required for expansion and improvements
Insights
Advance Auto Parts' announcement signals a strategic inflection point as they transition from optimization to growth after completing their store closure phase. With 75% of stores now positioned in markets where they hold #1 or #2 market share by density, they've created a stronger foundation for their expansion plans of 30 new stores in 2025 and at least 100 more through 2027.
The introduction of larger "market hubs" represents a significant operational evolution. These facilities will stock 75,000-85,000 SKUs versus the typical 20,000-25,000 SKUs in standard stores - a 3-4x increase in parts availability. This hub-and-spoke model addresses a critical industry challenge: balancing inventory breadth with efficient capital deployment. By positioning these hubs strategically, AAP can offer same-day delivery while reducing overall inventory carrying costs across their network.
Their focus on existing stronghold markets rather than pioneering entirely new territories suggests a defensive strategy that leverages existing distribution infrastructure and brand recognition. This approach typically yields higher ROI than entering untested markets, especially important as they rebuild after a consolidation phase.
The additional investments in IT infrastructure, equipment, and store repairs indicate they're addressing operational fundamentals that may have been deferred during their rationalization period. These improvements, coupled with enhanced team member training, suggest AAP is targeting improved in-store execution - a critical differentiator in auto parts retail where technical knowledge and service often outweigh price sensitivity.
AAP's pivot from store closures to expansion represents a meaningful strategic shift that warrants investor attention, though the announcement lacks specific financial metrics to fully assess immediate impact. The completion of their store optimization phase suggests management believes they've right-sized their footprint and established the necessary foundation for growth.
The planned addition of 130+ new locations through 2027 represents measured expansion rather than aggressive growth - likely a prudent approach following a rationalization period. The focus on expanding in markets where they already hold dominant positions (#1 or #2 by store density) should theoretically produce better economics through increased economies of scale in marketing, distribution, and brand awareness.
The "market hub" concept addresses inventory depth challenges that have historically plagued the sector. These larger-format stores require greater capital investment but potentially solve the parts availability equation that drives customer loyalty in this segment. The ability to stock 3-4x more SKUs than standard locations could improve capture rates on complex repairs and reduce lost sales.
While the incremental capital expenditure plan mentioned suggests continued investment pressure in the near term, these investments in IT infrastructure, equipment, and inventory systems are necessary modernization efforts in a competitive landscape where digital capabilities increasingly matter. The lack of quantification around these investments makes it difficult to assess their impact on cash flow or the expected payback period.
Without specific financial projections or performance metrics from the optimization phase, investors should view this announcement as directionally positive but insufficient to significantly alter near-term financial expectations.
Leading automotive aftermarket parts provider also investing to improve customer experience, increase parts availability and speed of service with same-day delivery
Optimization of the retail footprint was key to Advance’s broader transformation plan to reposition the company for long-term success. Now, more than
With that phase complete, the Company now expects to open 30 new locations in
Since the beginning of this year, Advance has opened six new stores in
Advance is also continuing the expansion of market hubs with new openings soon in the Midwest. These larger stores will increase availability of parts by placing approximately 75,000 to 85,000 SKUs closer to customers and other local Advance stores, as well as improve Advance’s speed of service with same-day delivery of parts. By comparison, typical Advance stores carry between 20,000 to 25,000 SKUs.
“Advance Auto Parts is on the path to accelerate store growth and focused on the fundamentals of selling auto parts,” said Shane O’Kelly, president and chief executive officer. “We are excited about what’s to come for Advance. Our team members are committed to providing the right parts and the right service for our PRO and DIY customers in their communities.”
In addition to new store openings, Advance is creating a better customer experience. The Company’s previously announced incremental capital expenditure plan includes additional investments in existing stores related to IT infrastructure, equipment, store repairs and improved inventory and delivery. Advance is also providing additional training to team members to enhance customer experience.
About Advance Auto Parts
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of December 28, 2024, Advance operated 4,788 stores primarily within
Forward-Looking Statements
Certain statements herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast, “guidance,” “intend,” “likely,” “may,” “plan,” “position,” “possible,” “potential,” “probable,” “project,” “should,” “strategy,” “target,” “will,” or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company’s strategic initiatives, restructuring and asset optimization plans, store and location opening plans, operational plans and objectives, and statements regarding expectations for future business and financial performance, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company’s views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company’s ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company’s restructuring and asset optimization plans, deterioration of general macroeconomic conditions, geopolitical factors including increased tariffs and trade restrictions, the highly competitive nature of the industry, demand for the Company’s products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company’s inventory and supply chain and challenges with transforming and growing its business. Please refer to “Item 1A. Risk Factors” of the company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as updated by the company’s subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250326356302/en/
Investor Relations Contact:
Lavesh Hemnani
T: (919) 227-5466
E: invrelations@advanceautoparts.com
Media Contact:
Nicole Ducouer
T: (984) 389-7207
E: Nicole.Ducouer@advance-auto.com
Source: Advance Auto Parts, Inc.
FAQ
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