Advance Auto Parts will close 700-plus stores as the list of struggling retailers grows

Advance Auto Parts, a leading automotive aftermarket-parts provider in North America that serves both professional installers and do-it-yourself customers, said it will close more than 700 of its 5,000 stores in a “strategic plan to improve business performance.” Of those closing, it said 523 will be corporate stores, 204 will be independent locations, and four will be distribution centers.

The retailer joins a number of chains in the U.S. that are struggling as consumers spend less due to rising prices and changing purchasing habits. The closures are part of the company’s plan to turn around its business following disappointing earnings results.

“We are charting a clear path forward and introducing a new three-year financial plan, with a focus on executing core retail fundamentals to improve the productivity of all our assets and to create shareholder value,” CEO Shane O’Kelly said in an earnings statement.

Reached by Fast Company, Advance Auto Parts declined to share a list of store locations that will be closing.

Advance Auto Parts (AAP) shares surged 10% Thursday on the news. They remained up 4% in afternoon trading despite a disappointing third quarter, with net sales coming in at $2.15 billion (down from $2.2 billion last year), missing Wall Street estimates of $2.62 billion for a loss of 4 cents a share.

It remains to be seen if Advance’s plan will be enough to turn the ailing company around. The stock is down 30% year to date.