Advance Auto Parts Inc (NYSE: AAP)

Advance Auto Parts Inc operates as a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers. The company offers a broad selection of brand names, original equipment manufacturer parts, and owned brand automotive replacement parts, accessories, batteries, and maintenance items for a variety of vehicles, including domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. As of January 3, 2026, Advance Auto Parts operated 4,305 stores primarily within the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. The company also served 809 independently owned Carquest branded stores across similar geographic locations, including Mexico and various Caribbean islands.

Advance Auto Parts generates revenue through the sale of a comprehensive portfolio of replacement parts, maintenance items, accessories, and tools. The company's primary products include batteries and battery accessories, belts and hoses, brakes and brake pads, climate control parts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wire, radiators and cooling parts, starters and alternators, steering and alignment parts, air conditioning chemicals and accessories, air fresheners, antifreeze and washer fluid, electrical wire and fuses, electronics, floor mats, seat covers and interior accessories, hand and specialty tools, lighting, performance parts, sealants, adhesives and compounds, tire repair accessories, vent shades, mirrors and exterior accessories, washes, waxes and cleaning supplies, and wiper blades. The company's customer base includes professional installers, such as garages, service stations, and auto dealerships, as well as do-it-yourself customers who shop in-store or online.

• Advance Auto Parts: The company's 4,066 Advance Auto Parts stores, including 255 hubs and 33 market hubs, are generally located in freestanding buildings across 44 U.S. states and two U.S. territories. These stores focus on both professional and DIY customers and carry a wide variety of products serving aftermarket auto part needs for both domestic and import vehicles. The average size of an Advance Auto Parts location is approximately 8,100 square feet, and these stores offer approximately 23,200 stock keeping units (SKUs).

• Carquest: The company's 239 Carquest stores, including 157 stores in Canada, are generally located in freestanding buildings with a primary focus on professional customers but also serve DIY customers. These stores carry a wide variety of products serving the aftermarket auto part needs for both domestic and import vehicles with a product offering of approximately 19,100 SKUs. The average size of a Carquest store is approximately 6,600 square feet. Additionally, 809 independently-owned stores operate under the Carquest name.

Advance Auto Parts holds a significant position within the automotive aftermarket industry, competing with national and regional chains such as AutoZone, Inc., NAPA, O'Reilly Automotive, Inc., and Auto Plus. The company's competitive advantages include brand recognition, customer service, product offerings, availability, quality, service speed, price, and store location. Advance Auto Parts also benefits from its extensive network of distribution centers and hubs, which enable same-day or next-day availability to customers. The company's merchandising strategy focuses on carrying a broad selection of high-quality and reputable brand name automotive parts and accessories, including brands like Bosch, Castrol, Dayco, Denso, Gates, Meguiar's, Mobil 1, Moog, Monroe, NGK, Prestone, Purolator, and Wagner. Additionally, the company stocks a wide selection of high-quality owned brand products under various names such as Carquest, DieHard, Driveworks, and Wearever.

The company's customer base includes professional installers, such as garages, service stations, and auto dealerships, as well as do-it-yourself customers who shop in-store or online. Advance Auto Parts serves its professional customers through a variety of channels, including electronic orders, phone orders, and in-store purchases, with deliveries made to their places of business. DIY customers are primarily served through the company's stores but can also order online for pick-up at a nearby store or have their purchases shipped directly to them. The company provides a variety of free services at its stores, including battery and wiper installation, check engine light scanning, electrical system testing, oil and battery recycling, and loaner tool programs.