News Summary

Advance Auto Parts has announced plans to close over 700 locations nationwide, including more than 90 stores in California. The closure of the Cathedral City store will be effective until March 7, as part of a broader restructuring plan aimed at streamlining operations. They have filed closure notifications under the WARN Act and are expected to consolidate their distribution centers while planning new store openings in the future. This shift comes amidst financial losses and aims to adapt to the changing auto parts market.

Major Changes Ahead for Advance Auto Parts in Cathedral City

Cathedral City is getting some big news as Advance Auto Parts has announced plans to close down over 700 locations across the country. This includes more than 90 stores right here in California. The news broke during a recent earnings call, stirring up quite the conversation among customers and employees alike.

What’s Going On?

The closures are part of a broader restructuring plan that Advance Auto Parts has laid out in their fourth-quarter report for 2024. They are looking to close approximately 500 corporate stores, 204 independent locations, and four distribution centers by mid-2025. This move is described as a necessary step to streamline operations and cut down on overlapping locations.

Specifics on Cathedral City

For those in Cathedral City, the location at 68-580 Ramon Rd. will be shuttering its doors, according to an employee. However, before you rush to say goodbye, you can find comfort in the fact that this location will remain operational until March 7. Interestingly, the store is associated with Carquest Auto Parts, and you can check the store locator for updates, even though the Cathedral City closure doesn’t yet show on the list.

The WARN Act and More Closures

Advance Auto has filed over 90 closure notifications under the Worker Adjustment and Retraining Notification (WARN) Act. This Act requires larger companies to provide a 60-day heads-up before shutting down locations. The notifications were sent out on November 14 and are being processed quickly, with closures scheduled from early February to early March.

Future Plans for Advance Auto Parts

Despite the closures, Advance Auto Parts is not throwing in the towel just yet. They are consolidating their distribution centers and aim to have 12 larger facilities up and running by the end of 2026. Plus, they have big plans in the works, with 60 new market hub store openings slated for mid-2027, showing a commitment to long-term success after a year of tackling declining sales.

What’s Going On Financially?

In terms of finances, Advance Auto reported a narrowing loss of $6 million in the third quarter, which, while a loss, is an improvement from a whopping $62 million loss the year before. However, their net sales from continuing operations dropped by $100 million compared to the previous year. This decline has prompted the company to get serious about changes, including the recent sale of Worldpac, an automotive parts wholesaler, for $1.5 billion.

Where Do We Go From Here?

As many local jobs may be impacted by these closures, specifics have not been publicly shared on how many positions will be lost. Fortunately, if you’re looking for auto parts, other options in the vicinity include names like Pep Boys, AutoZone, O’Reilly Auto Parts, and Napa Auto Parts. This gives customers a variety of choices as they navigate this changing landscape.

Looking at the Bigger Picture

The U.S. auto parts manufacturing sector has seen a decline of about 1% in 2023, showing a trend of falling numbers over the last few years. Yet, the larger auto aftermarket industry is projected to grow significantly, expanding from $218.82 billion in 2023 to an impressive $336.79 billion by 2033. This growth will largely be fueled by the increasing demand for auto repair services and parts.

The news from Advance Auto Parts may feel unsettling, but the shift in strategy could potentially lead to a more agile and successful company in the future. Stay tuned for updates, and don’t forget to check your local store locator for announcements regarding your nearby Advance Auto Parts locations.

Advance Auto Parts Announces Major Store Closures in California