Advance Auto to Open 40–45 Stores, Launch 10–15 Market Hubs in 2026
Advance Auto Parts completed March 2025 store optimization—75% of outlets in top markets—and plans 40–45 new stores and 10–15 market hubs in 2026–2027. Q4 adjusted operating income rose to $73 million with an 870-basis-point gain; SG&A cuts will deliver 20–50 bps leverage, 1–2% sales growth and 3.8–4.5% margins in 2026.
1. Store and Supply Chain Expansion
Advance Auto completed its store footprint optimization in March 2025, placing 75% of outlets in its highest-density markets. The company plans to open 40–45 new stores in 2026 and convert existing distribution centers into 10–15 market hubs by 2027 to strengthen regional presence.
2. Financial Performance and Outlook
In the fourth quarter of 2025, adjusted operating income rose to $73 million, reflecting an 870-basis-point margin improvement. AAP forecasts SG&A reductions driving 20–50 basis points of operating leverage, supporting 1–2% sales growth and expanding margins to 3.8–4.5% in 2026.
3. Debt Metrics and Risks
Long-term debt reached $3.41 billion as of January 2026, yielding a debt-to-capital ratio of 0.61 versus the auto sector’s 0.17. The company expects capital expenditures of roughly $300 million in 2026, while DIY demand pressures and intensifying competition remain key risks to near-term performance.