Advance Auto Parts Finds Growth in Larger Stores and Repurposed Real Estate

May 24, 2026 - 22:58

Last week, Advance Auto Parts reported its fastest quarterly comparable sales growth in nearly five years. Company executives credited the strong performance to better parts availability, driven by its expanding network of Market Hub stores.

Market Hubs are as large as 35,000 square feet, or about five times the size of a standard Advance Auto store. These locations improve same-day parts delivery across the company's network. The added coverage helps Advance Auto meet customer demand and take market share.

The company now operates 35 Market Hub stores and plans to add up to 15 more by the end of this year. By 2027, Advance Auto expects to run at least 60 Market Hubs.

A New Store Concept

Advance Auto introduced the Market Hub concept just a few years ago. Instead of finding new locations, the company repurposed underused real estate it already owned. These were small distribution centers inherited from the 2014 purchase of Carquest Auto Parts.

For years after the acquisition, Advance Auto ran two separate supply chain networks. Converting the Carquest DCs into Market Hubs helped merge those networks and speed up parts delivery. Each Market Hub carries between 85,000 and 90,000 SKUs and serves as both a retail store and a mini distribution center for about 90 nearby Advance Auto stores.

This setup makes it more likely that a part is in stock and can be delivered quickly. Company executives report that stores near a Market Hub see a sales boost of about 100 basis points compared to other stores. The success of Market Hubs has also allowed Advance Auto to reduce its U.S. distribution centers from 40 in 2023 to just 16 today.

Finding New Real Estate

Advance Auto has converted about 30 former Carquest DCs into Market Hubs over the past two years. Now the company needs other real estate to keep growing. Some new Market Hubs will be built from the ground up. But most will go into second-generation big box spaces previously used by other retailers.

One example is a Market Hub in Stone Mountain, Georgia. The roughly 35,000 square foot space was previously occupied by Conn's HomePlus, a furniture retailer that filed for bankruptcy in 2024. Another Market Hub in Harrisburg, Pennsylvania, about 24,000 square feet, was once a Get Air Trampoline Park.

Using repurposed space keeps costs down. CFO Ryan Grimsland said the average cost to open a new Market Hub is about $2 million, though that varies depending on whether the store is built new or uses existing space. Second-generation space also comes with lower rent and a faster timeline. These locations can open in about half the time or less compared to new construction.

The Biggest Near-Term Growth Driver

Market Hubs are Advance Auto's most important new store initiative. They will make up about half of the company's new locations over the next two years. Because they are much larger than standard stores, they will account for most of the company's square footage growth.

The hubs are especially important for Pro customers, which include professional installers and collision repair shops. CEO Shane O'Kelly said these customers have come to expect the wider parts availability and faster service that Market Hubs provide. Sales to Pro customers are expected to outpace do-it-yourself sales in coming quarters.

O'Kelly noted that in the past, getting a part to a customer meant relying on a distribution center, which was expensive and time-consuming. Market Hubs solve that problem by keeping parts closer to customers.

Future Real Estate Plans

Advance Auto wants future Market Hubs to serve about 50 satellite stores each, rather than the 90 they currently support. That means the company may need many more hubs to cover its entire network.

Recent retail bankruptcies, including Conn's HomePlus, Big Lots, and Joann Stores, have freed up over 2,000 big box locations across the country. These could work well as Market Hubs. But competition for these sites is high, and they may not stay available for long.

One interesting possibility is co-locating with larger Pro customers in multi-use buildings. These properties could combine dealerships, collision centers, tire service, and auto parts under one roof. That would require even larger spaces than standard big box stores.

For example, Autofit, a wholesale auto parts supplier, opened in a 140,000 square foot former Sam's Club in San Antonio, Texas. That building is one of at least six former Sam's Clubs converted to automotive use. Sam's Club buildings have high ceilings, open floor plans, and grade-level doors that work well for parts storage. They also sit in major retail corridors with good access and parking. Many even offered tire sales and auto service before closing, making them a natural fit.

If Advance Auto pursues spaces this large, the company might need a new name for them. Something like Super Market Hubs could be in order.