Portland, Oregon – Major player in the automotive retail market, Advance Auto Parts, has launched an extensive downsizing initiative including closing nine locations across Oregon. The closures are a component of a bigger effort to simplify processes and boost financial performance among declining sales.
The change coincides with the corporation under increasing pressure to change with the dynamics of the market. Advance Auto Parts is to close four distribution facilities, 204 independent stores, and 523 corporate-owned sites altogether across the country.
With permanent closures set for between February 23 and March 31, 2025, the Oregon closures will impact stores in Beaverton, Gresham, Hillsboro, Milwaukie, Portland, and Sandy. Between general managers and sales associates as well as commercial parts workers, these closures will affect 96 jobs throughout the state.
Stores set to close in Oregon
The nine affected locations include:
- 11943 SW Canyon Rd, Beaverton
- 19375 SW Tualatin Valley Hwy, Beaverton
- 21325 SE Stark St, Gresham
- 2120 E Powell Blvd, Gresham
- 235A SW Oak St, Hillsboro
- 17401 SE McLoughlin Blvd, Milwaukie
- 4909 SE Powell Blvd, Portland
- 3370 NE 70th Avenue, Portland
- 17060 Ruben Lane, Sandy
This announcement was made public through a Worker Adjustment and Retraining Notification (WARN) filed with Oregon’s Higher Education Coordinating Commission. The WARN notification guarantees local governments and workers advance notice of major industrial closings or layoffs.
The decision follows a challenging period for Advance Auto Parts. The company reported a 2.3% drop in comparable store sales in the third quarter of 2024 compared to the same period in 2023. The company is reacting with a strategy plan meant to increase its financial performance in order to raise adjusted operating income margin by more than 500 basis points by fiscal 2027.
Key elements of the plan include:
- Standardizing Store Operations: Efforts are underway to create a more uniform operating model across all locations.
- Enhancing Labor Productivity: By optimizing staffing and workflows, the company hopes to increase efficiency.
- Consolidating Distribution Centers: Advance Auto Parts intends to operate only 13 distribution centers by 2026, streamlining supply chain operations.
- Expanding Market Hubs: Despite store closures, the company plans to accelerate new store openings and operate 60 market hub locations by mid-2027.
In a statement, the company emphasized that these measures are part of a broader strategy to position Advance Auto Parts for long-term growth and profitability.
“The company is executing a strategic plan to improve business performance with a focus on core retail improvements. The company has identified opportunities that it believes can improve adjusted operating income margin by more than 500-basis points through fiscal 2027. This strategic plan is anchored on three pillars outlined below to put the company on the path to deliver consistent profitable growth,” the press release reads.
For the affected employees and local communities, the closures represent a significant disruption. Workers now have an unclear future as Oregon alone projects approximately 100 layoffs. Although local governments and worker development programs may assist, the shift will surely be difficult.
Oregonians will also experience the effects since they will lose access to handy retail places. Although Advance Auto Parts has stated intentions to concentrate on market hubs and new store openings, it is yet to be seen how these developments would impact local service availability.
Moving ahead with its restructuring plan, Advance Auto Parts’ capacity to carry out its plan will be essential. The company wants to restore its competitive edge in a fast changing industry by concentrating on operational effectiveness and market development.
Read also: Kroger agrees to pay nearly $1.4 billion to 30 states in opioid settlement. Oregon gets $40 million.
For now, the closing of these nine Oregon outlets represents a turning point not only for the business but also for communities depending on these sites for automotive necessities.
