Retail Meltdown: Auto Parts Store In Texas Closing 731 Locations Nationwide

According to WDTN News, an auto parts store with many Texas locations has announced it will close 731 brick-and-mortar operations, including corporate stores, franchises, and distribution centers.

Advanced Auto Parts specializes in auto replacement parts, performance parts, oils, and fluids.

According to Investopedia, Advance Auto Parts made the announcement on 11/14/2024, which caused its stock to surge 10%, although the shares were down over 30% this year.

Read More: Big Furniture and Appliance Retailer Closing All Texas Locations

Net sales fell to $2.1 billion, down from $2.2 billion the prior year, and also lagging forecasts of $2.67 billion.

The company posted a surprise quarterly loss, which likely prompted this new business plan.

Read More: Major Retailer Calls It Quits: Texas To Lose Dozens of Locations

While this shakeup may be a boost for stockholders, this massive amount of closures will almost certainly affect Texas locations- including many jobs held by Texans.

This closure joins many other large chains culling underperforming locations or going out of business altogether. 2024 has not been a great year for many brick-and-mortar retailers.

It should be noted that the stores and distribution centers to be closed have yet to be announced. But with as many locations as Texas has, it is unlikely Texas will remain untouched.

Advance Auto Parts, "is going to be prioritizing store operations, excellence in merchandising and the supply chain," by creating large distribution hubs and "market hub" stores. It hopes to streamline its operations to get parts to consumers faster.

The current financial environment has been toxic for retailers- between the aftershocks of the pandemic, inflation, and consumer habit changes (read: shopping online), its a difficult to stay afloat.

However, The Street gives another reason as well: too many stores in the first place.

An uncomfortable truth is that by 2018 U.S. retailers occupied 23.5 square feet per person, the most in the world.

So it's possible part of what we are seeing is a correction, however, I'm sure that is little comfort to anyone who loses their job over it.