Advance Auto Parts is an American company that specializes in the distribution of automotive replacement parts and accessories. As of 2019, it is the largest retailer of automotive parts and accessories in the United States, ahead of its chief competitors, AutoZone and O’Reilly Automotive.
The company was founded in 1932 by Richard E. Adams and Charles J. Dittrich as Advance Stores Company, Inc. In 1992, Advance Stores Company, Inc. changed its name to Advance Auto Parts, Inc.
Advance Auto Parts has been struggling financially in recent years. In 2015, the company reported a net loss of $339 million.
In 2016, the company’s net income fell by 45% to $190 million. And in 2017, the company reported a net loss of $491 million.
The company’s financial troubles began in earnest in 2018 when it announced that it would be closing 150 stores worldwide due to “declining profitability.” In 2019, Advance Auto Parts’ same store sales fell by 2.7%, prompting the company to close an additional 43 stores.
Is Advance Auto Parts in financial trouble?
Yes, Advance Auto Parts is in financial trouble. The company has been struggling to turn a profit in recent years and has closed several hundred stores worldwide.