A popular auto parts chain is latest major U.S. store that is shuttering many of its doors in the wake of financial struggles.
CNN reports Advanced Auto Parts is set to close 700 stores nationwide after the company suffered a financial setback in their earnings report. In a statement released on Nov. 14, the chain said that he closures are part of its “strategic plan to improve business performance.”
CNN reports that shares slid nearly 5 percent after earnings missed what was initially predicted for the chain.
The new closures will result in 500 corporate locations closing, as well as an additional 200 independent stores closing their doors.
So far, the company has not yet issued a full list of which locations are scheduled to shut down.
READ MORE: Big Lots to Close Another 56 Stores in 27 States
Advance Auto Parts has lowered its full-year outlook for the second quarter in a row. The company revealed what may have contributed to the closings, saying in an earnings call that “consumers continue to feel the weight of an uncertain macroeconomic climate.”
Over the last year, the company has attempted to turn around, generate a profit and reverse sliding sales. To help relieve some of their recent costs, CNN reports Advance Auto Parts recently sold Worldpac, an automotive parts wholesaler, for $1.5 billion.
The news of Advance Auto Parts closing locations come as other major retailers such as Walgreens continue to shutter locations all across the country.
Walgreens is set to close over 1,200 locations due to inflation, rising operating costs and deflating revenue.
2024 Food Recalls
Many foods have been recalled from grocery stores in 2024. Here are the ones you should know.