Raleigh, North Carolina-based Advance Auto Parts Inc. (NYSE: AAP) today opened its first store in Springfield, an event that brought its CEO to town to celebrate the market entry.
The company, a national competitor of Springfield-based O’Reilly Automotive Inc. (Nasdaq: ORLY), held a ribbon-cutting ceremony this morning for its store at 1257 E. Battlefield Road, just off National Avenue. As part of the event, Advance Auto Parts donated $5,000 to the Springfield-Greene County Park Board.
Led by General Manager Jeremy Cotton, the store operates in 11,000 square feet in a roughly 22,000-square-foot building owned by Pep Boys, which will continue to operate a service department at the property, said Cliff Cermak, a spokesperson for Advance Auto Parts.
Advance President and CEO Tom Greco visited Springfield for the ribbon-cutting ceremony that also was attended by Mayor Ken McClure and delegates of the Springfield Area Chamber of Commerce.
"It's a really growing part of the country," Greco said of southwest Missouri in an interview with Springfield Business Journal. "As a place like Springfield continues to grow, we'll absolutely continue to have more stores."
Like O'Reilly Automotive, Advance Auto offers automotive aftermarket parts. Officials with O'Reilly Automotive declined to comment on Advance Auto's Springfield market entry.
Asked about joining O'Reilly Automotive’s home market, Greco said Advance Auto Parts competes with the company nationwide.
"They're a great company. They really are," he said. "We just want to bring our value proposition to as many places in this country as we can."
In the second quarter, O'Reilly Automotive posted $585.5 million in profits on revenue of $3.5 billion. The company had 5,732 stores as of June 30, according to past reporting.
During the second quarter, Advance Auto Parts reported $179 million in net income on $2.6 billion in sales, according to a news release. As of June 17, Advance had 4,748 stores under its branding and 215 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also serves more than 1,300 independently owned Carquest stores.
Greco this morning said Advance Auto Parts is in growth mode and adding hundreds of stores after a down period for a couple years leading up to 2020.
Both companies trade publicly, with O'Reilly Automotive on the Nasdaq and Advance Auto Parts on the New York Stock Exchange.
AAP's 52-week range is $142.59 to $220.12 per share, compared with ORLY's 52-week range of $424.03 to $629.40 per share.
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