Advance Auto Parts Inc. (NYSE:AAP) disclosed that it completed the store closure phase of its transformation plan and is now shifting focus to its returning to growth.

The company stated that as of now, over 75% of its stores are in markets where it holds the No. 1 or No. 2 position by store density, reinforcing its presence in key areas.

With this phase complete, the company plans to open 30 new U.S. locations in 2025 and at least 100 more through 2027, including larger “market hubs.”

Notably, since the start of the year, Advance has opened six new stores across Florida, New Jersey, Tennessee, and Virginia, with more locations set to launch in Florida, Illinois, Maryland, Ohio, Virginia, and Wisconsin in the coming months.

The company is also expanding its market hubs in the Midwest, offering 75,000 to 85,000 SKUs, a significant increase from the 20,000 to 25,000 typically found in its stores.

These hubs are expected to enhance part availability and enable same-day delivery, improving service speed for customers and nearby Advance locations.

Last month, the company reported fourth-quarter adjusted earnings per share of $1.18 loss, which was in line with the analyst consensus estimate and quarterly sales of $2 billion outpaced the street view of $1.93 billion.

The company disclosed its long-term aim to optimize its supply chain by consolidating distribution centers and opening 60 market hubs by mid-2027.

Investors can gain exposure to the stock via Invesco S&P Smallcap 600 Pure Value ETF (NYSE:RZV) and Invesco Exchange-Traded Fund Trust II Invesco S&P SmallCap 600 Revenue ETF (NYSE:RWJ).

Price Action: AAP shares are up 0.27% at $37.64 premarket at the last check Wednesday.

Read Next:

• Is Advance Auto Parts Turning The Corner? Analyst Predicts Slow Recovery And Market Share Losses

Photo: Refina via Shutterstock.