After a turbulent year of downsizing, Advance Auto Parts is hitting the accelerator on a bold new growth plan. CEO Shane O’Kelly is leading the charge, determined to revive the company’s momentum following a major restructuring effort in 2024 that resulted in the closure of over 700 retail outlets and distribution hubs across the country.
From Retrenchment to Revival
Based in North Carolina, the auto parts retailer is staging a comeback. So far in 2025, six new locations have opened in Florida, New Jersey, Tennessee, and Virginia. But that’s just the beginning—Advance Auto Parts is eyeing an additional 30 store openings before year’s end. The company is also targeting strategic markets in the Midwest, including Illinois, Ohio, Wisconsin, and Maryland, aiming to strengthen service and inventory access for both professional customers and DIY auto enthusiasts.
A Road to Recovery
Last year’s restructuring was a painful but necessary move as the company wrestled with financial headwinds, including a $6 million loss in the third quarter of 2024. Shrinking sales and reduced forecasts led to tough decisions, including the shuttering of 523 corporate stores, 204 independently operated locations, and four distribution centers. Still, O’Kelly remains confident in the company’s direction. “We exited 2024 in a solid financial position, with strong liquidity to support our turnaround,” he stated.
Advance Auto Parts has set an ambitious financial target—a 7% adjusted operating margin by 2027. For the first quarter of 2025, the company is forecasting $2.5 billion in revenue, even while preparing for continued short-term declines in same-store sales.
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Retail Challenges Across the Board
Advance’s rebound strategy is playing out in an unforgiving retail climate. The aftermath of the COVID-19 pandemic, high inflation, and the dominance of e-commerce have contributed to widespread store closures. In 2024 alone, more than 7,300 retail locations across the U.S. shut their doors. Well-known chains like Macy’s and Forever 21 have restructured amid falling foot traffic, while industry leaders such as Walmart, Costco, and Target have successfully adapted to shifting consumer behaviors.
Emphasis on Service and Execution
O’Kelly has made it clear that the company’s path forward relies heavily on execution and team performance. “Our people are focused on delivering the right parts and expert service to both PROs and DIYers in every community we serve,” he said.
With a global footprint exceeding 4,000 locations, Advance Auto Parts is betting that disciplined operations and customer-centric strategies will help it regain traction in a competitive sector.
As retail continues to evolve at a rapid pace, Advance Auto Parts is positioning itself not only to survive—but to thrive—through smarter expansion and renewed focus. While the company faces a challenging road ahead, its latest moves suggest a determined effort to drive growth and redefine its place in the auto parts industry.
