Full-Time
Posted on 9/24/2025
Automotive aftermarket parts retailer
$18.15 - $19.96/hr
Plainfield, IL, USA
In Person
Advance Auto Parts supplies automotive aftermarket parts and accessories to both professional installers and DIY customers through thousands of stores in North America. Its product lineup includes replacement parts, maintenance items, and car accessories for cars, vans, and light trucks, sold in-store and online with staff guidance to help customers select the right parts. The company differs from many competitors through its extensive store network, broad product assortment, and ability to serve both professional businesses and individual customers with knowledgeable service and a nationwide distribution and retail model. Its goal is to be the preferred source for auto parts by offering a wide selection, convenient locations, and expert customer assistance.
Company Size
10,001+
Company Stage
IPO
Headquarters
Raleigh, North Carolina
Founded
1932
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Performance Bonus
Advance Auto Parts is undergoing a supply chain transformation as part of its turnaround strategy under CEO Shane O'Kelly, who joined two and a half years ago. The company, which generated $8.6 billion in revenue in 2025, operates 4,200 stores and serves 800 independent dealers across North America. The Raleigh-based retailer has shown progress, achieving 1.1% comparable store sales growth after three years of declines and expanding its adjusted operating income margin by over 200 basis points. Its full-year operating loss narrowed to $43 million from $713 million the previous year. Key transformation initiatives include selling Worldpac to Carlyle for $1.5 billion and consolidating its distribution network from 50 centres to 16, unifying operations under a single warehouse management system.
H Partners Management increased its stake in Advance Auto Parts by 375,000 shares during the fourth quarter, worth approximately $18.80 million. The investment firm now holds $35.37 million in the auto parts retailer, representing 22.4% of its assets under management and making it H Partners' third-largest holding. Advance Auto Parts shares have risen 44.2% over the past year as of 12 March 2026, outperforming the S&P 500 by 24 percentage points. The company is undergoing a turnaround after struggling with management issues and poor pricing strategies that saw its stock fall 78% from its 2022 peak. Since H Partners became involved, Advance Auto Parts appointed a new CEO, added experienced board members, sold 700 underperforming stores, exited California, and divested its wholesale distribution business to reduce debt.
Beaconlight Capital sold 124,431 shares of Advance Auto Parts during the fourth quarter ended 31 December 2025, an estimated $6.24 million transaction based on quarterly average pricing. The sale reduced the fund's position to just 10,920 shares worth $429,156, representing 0.25% of its assets under management, down from 4.1% the previous quarter. Advance Auto Parts shares have risen 42% over the past year, trading at $53.38. The automotive parts retailer reported comparable sales growth in 2025 after three years of decline, whilst adjusted operating margin expanded over 200 basis points to 2.5%. Revenue fell to $8.6 billion from $9.1 billion, but adjusted operating income climbed to $216 million from $35 million in 2024. Management forecasts 1% to 2% comparable sales growth for 2026.
Advance Auto Parts has raised its post-money valuation to $1.45 billion after completing a multi-year transformation that returned the company to positive comparable sales growth in fiscal 2025. The automotive parts retailer reported adjusted operating income margin expansion of more than 200 basis points, reaching 2.5% for the full year. The company opened 14 new market hubs, added roughly 100,000 SKUs, and consolidated its US distribution centre network to 16 facilities from nearly 40 in 2023. Management exited over 500 corporate stores and 200 independent locations, saving approximately $70 million in operating costs. For 2026, Advance guides underlying net sales growth of 1–2%, adjusted operating margin of 3.8–4.5%, and approximately $100 million in free cash flow, whilst targeting a medium-term goal of 7% adjusted operating income margin.
Advance Auto Parts has launched Advance Rewards, a refreshed loyalty programme, whilst closing over 700 locations as part of a major restructuring under CEO Shane O'Kelly. The company is shifting towards larger market hub stores to improve operational performance and profit margins. The hub-focused model aims to concentrate inventory, improve fill rates and reduce costs as the retailer competes with AutoZone and O'Reilly Automotive. The new loyalty programme targets customer retention, particularly amongst do-it-yourself shoppers, even as physical locations decrease. Analysts note execution risks, including restructuring costs and potential customer defection to competitors. However, the strategy could improve product availability and delivery speed for both professional installers and retail customers. The success of consolidating stores whilst maintaining customer engagement will be crucial for the company's competitive position.