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dvance Auto Parts is closing 139 California locations and four West Coast distribution centers due to logistics struggles, exacerbating challenges in the state's commercial real estate market. The company plans to shut down a total of 725 US stores, effectively exiting California altogether. With around 4,700 nationwide locations and affiliations with 1,100 independent operators, Advance Auto Parts is scaling back operations where it lacks efficiency, particularly on the West Coast.
Industry analyst Bret Jordan notes that some competitors receive daily shipments while Advanced Auto Parts stores typically get deliveries once a week from its warehouses. This inefficiency stems from the company's lack of scale in regional markets like California. By cutting out these areas, Advance Auto Parts aims to boost profitability by eliminating less profitable regions.
The closures will disproportionately affect Southern California, where about 70 locations are set to shut down across five counties. The retail sector is undergoing a shift away from regional malls towards centers anchored by essential services like grocery stores and pharmacies, which remain relatively strong.
