The internet has hurt some businesses more than others.
Clothing retailers, for example, have proven resilient because people like trying on clothes. Yes, you can buy anything from a suit to underwear online, but sending it back when it doesn’t fit is a hassle.
Related: Huge auto parts brand files for bankruptcy liquidation
Grocery chains have also done well, although traditional supermarkets have faced significant pressure from warehouse clubs as well as Walmart and Target’s expansion into those spaces. That’s because while having groceries delivered is convenient, it means giving up quality control.
People like to look at their produce before they buy it and size up their meat and fish before making a decision. They also like the immediacy of going to a store, putting items in their cart, paying for them, and then having them ready to go.
Brick-and-mortar chains that support do-it-yourself hobbies and activities, however, have suffered. Joann, the fabric chain, went bankrupt twice and is currently in the process of going out of business.
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That’s at least partly because hobby items become commoditized, and the internet tends to offer the best prices. If a customer knows what they want, then they don’t need a store.
They might use a store when immediacy is required, but some portion of their business gets siphoned off to the internet. That’s at least partially what has caused a regional auto supply company to close 90% of its physical locations and change its business model.
Some people go to a mechanic while others choose to work on their cars themselves.
Image source: Getty Images
Auto supply chain has a deep history
The auto supply industry exists to serve a shrinking customer base — people who work on their own cars. That used to be a much larger group of people as cars used to be a lot more simple.
Now, there are some makes and models of vehicles that untrained people simply can’t work on, but there remains a crowd of people who still choose to change their own oil and do other required vehicle maintenance without the help of a mechanic.
A&A Auto has served the do-it-yourself auto repair and maintenance markets for decades.
“Our company history begins with the dreams of Joe Amato Sr. and his son, Joe Jr., opening the first retail store at our A&A Auto Moosic location in 1958. Over 60 years later, A&A Auto Stores continues to be a leader in the aftermarket auto parts industry,” it shared on its website.
More closings:
Popular retail chain to close unprofitable store locationsBankrupt retail chain unloads store leases, key assetPopular discount retailer files bankruptcy, closes all stores
The company’s website is also optimistic about its future.
“Currently, A&A Auto operates 10 A&A Auto retail locations, two A&A service/installation centers, and three LINE-X Franchise locations throughout northeastern Pennsylvania. Going forward, A&A Auto is showing no signs of slowing down. We are continuously looking to increase our service capabilities and expand our market reach,” it added.
A&A Auto closing nine out of 10 stores
Despite its long history, A&A Auto has had to make a drastic decision in order to survive. The company is dramatically shifting its business model by closing most stores and only keeping open its flagship location in Exeter, Pennsylvania.
“We’re committed to continuing our legacy in Exeter. Though the decision to close these locations is difficult, we’ll continue to provide high-quality auto parts and expert garage service in Exeter, where our team is ready to meet all your automotive needs,” the company said in a press release.
Related: Auto parts chain shares good news after closing 700 stores
The chain has not shared a closing date for the other locations.
A&A plans to grow its wholesale business from its remaining location while also continuing to serve an existing customer base.
“We are deeply grateful to our loyal customers, dedicated employees, and trusted supplier-partners,” the company added.
This decision comes in the same month when Northvolt AB — which makes electric vehicle batteries for several carmakers including BMW, Audi, Porsche, Volvo, Polestar, and Swedish truckmaker Scania — decided to liquidate operations. In addition, Advance Auto Parts, a national car parts retailer, recently closed 700 locations, although it has shared plans to open 30 new stores in 2025.
