Automotive repair and tire retailer Monro is planning to close 145 locations in a bid to improve profitability, the latest company in the automotive services sector to close stores or take other steps to address the effect of inflation on its sales and profits.
Monro will close 145 stores by the end of June, the Fairport, New York-based company said in a statement. Monro declined to identify the locations set for closure when reached for comment by CoStar News. Monro operates 1,308 company-owned and franchised stores under several brand names that are mostly located in the Northeast.
The automotive services sector has been hammered by rising costs and lower consumer demand. American Tire Distributors, Accuride and Hoonigan all filed for Chapter 11 bankruptcy protection last year, and Canadian Tire said in March it will close 17 uncompetitive stores under the Atmosphere brand name. Monro's move also comes amid weakness in the broader retail sector, with Party City, Big Lots, Joann's and Rite Aid all closing stores.
In March, Monro hired Peter Fitzsimmons, a former executive with the bankruptcy advisory firm AlixPartners, as chief executive. Monro also retained AlixPartners to "assess the company's operations to develop a plan to improve the company's financial performance."
In Monro's latest quarterly earnings report, Fitzsimmons said that closing stores will help the company improve profits.
"We have identified four key areas of focus as opportunities for improvement," Fitzsimmons said in a statement. "These include closing 145 underperforming stores, improving our customer experience and selling effectiveness, driving profitable customer acquisition and activation and increasing merchandising productivity, including mitigating tariff risk."
Monro's sales have declined as consumers are worried about rising prices caused by inflation. This has led customers to cut back on the purchase of tires and higher-margin auto services, the company said in its annual report.
The company plans to operate 1,115 company-owned stores after the round of closings is completed, the company said in its annual report. Monro also has 48 franchised locations. The retailer plans to focus on opening new stores "in the best locations, without regard to the form of ownership required to develop the locations," it said.
Monro's stores operate under the names Monro Auto Service & Tire Centers, Tire Choice, Mr. Tire, Car-X and other brands.
The company has recently taken other steps to adjust its real estate profile to cut costs. In July, it sold its former headquarters at 200 Holleder Parkway in Rochester, New York, for $9.6 million and moved its corporate offices to leased space at 295 Woodcliff Drive in Fairport.