Another staple of US high streets will be shutting down multiple shops, as Advance Auto Parts bends under the economic crisis. With 500 shops and multiple jobs getting axed, the repair shop is doing its best to weather the financial storm.
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The closures of the Advance Auto Parts shops and expected job cuts come amid fewer people repairing their vehicles. Apparently, less people are opting to repair, maybe because of the increase in leasing, and an influx of affordable Chinese vehicles.
Due to lower customer spending, Advance Auto Parts have revealed they plan to close 523 corporate stores, exit 204 independent locations and shutter four distribution centers by mid-2025. This was stated in a regulatory filing. These hits will, of course, affect many jobs across the country. Each location has multiple employees.
A Decreasing Demand For Auto Parts Shops
There are numerous reasons why people are choosing not to repair their cars anymore. However, one of the main ones is the difficulty that comes with modern car repairs. Previously, cars were much more simple to repair, even in your own driveway. A Haynes manual and some elbow grease could usually identify and fix the issue.
However, now, cars are so technologically advanced, repairs take a degree in computer science. Identifying and fixing many modern cars problems require computers to be plugged in, and some level of coding. This makes people much less likely to visit somewhere like Advance Auto Parts for their fix. Vehicles need to be brought to specialists, as they have locked potential casual car mechanics out of the systems.
Advance Auto Parts have also claimed that part of the problem is to do with imported, cheaper, but feature rich vehicles. These cars can be shipped in from Chinese manufacturers, and cost significantly less than their US counterparts.
They are packed with tech and parts that may not be available in US auto parts shops. Because of this, the shops aren't able to help when a repair is needed. Instead, the user has to take it to a registered dealer. The age of rolling up your sleeves and fixing your car on the drive are gone.
