Monro Inc. Announces Closure of 145 Auto Service Locations

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Technicians at Monro auto service center handling customer vehicles.

News Summary

Monro Inc. has revealed a significant restructuring plan, which includes closing 145 auto service locations across the United States due to a 4.9% drop in annual sales. The CEO, Peter Fitzsimmons, aims to improve the company’s performance by addressing operational challenges and enhancing customer experience. While total sales fell to approximately $1.2 billion, the company’s stock saw a boost after the announcement. This move is seen as a strategic step towards strengthening profitability and future growth.

Fairport, New York – Monro Inc. has announced a substantial restructuring plan that involves closing 145 of its auto service locations across the United States. This decision follows a report of a 4.9% decrease in sales for the fiscal year ending March 29, 2025, leading to a net loss of $5.2 million.

The tire and auto service provider operates more than 1,250 locations across 32 states under various brand names, including Monro Muffler, Mr. Tire Auto Service Centers, Tire Warehouse, and Mountain View Tire & Auto Service. The closures, intended to address underperforming stores, are part of a broader strategy aimed at increasing profitability amid operational challenges.

The announcement was made by Peter Fitzsimmons, who recently assumed the role of CEO effective March 31, 2025. Fitzsimmons, who previously held a position at AlixPartners, is determined to initiate improvements in key areas identified by the company. These areas include enhancing customer experience, boosting selling effectiveness, refining customer acquisition and activation, and increasing merchandising productivity.

As part of its restructuring effort, Monro has conducted a thorough assessment of its store portfolio to pinpoint which locations will close based on performance metrics. This process aims to mitigate operational challenges and tariff risks impacting the company’s profit margins. The decision to close the stores is expected to commence in the current fiscal quarter ending June 2025.

Monro recorded total sales of approximately $1.2 billion over the past fiscal year, marking a decline from the previous year’s $1.277 billion. The closures come as the company grapples with declining demand for auto services and tires, which have been influenced by inflationary pressures affecting consumer spending.

The company’s stock has seen a notable increase of over 23% since the announcement of the closures; however, it remains down by more than 37% year to date. While Monro has identified the specific locations set to close, it has not disclosed the list publicly, as the company prioritizes support for affected employees during this transition.

In a further effort to streamline operations, Monro’s corporate headquarters, located in Fairport, New York, was put up for sale last year, with the grounds sold to Ram Construction, LLC for $9.6 million in July 2024. Alongside corporate locations, the total number of stores operated—including franchised outlets—is approximately 1,300.

The company’s upcoming changes reflect a strategic pivot meant to position Monro for future growth by addressing current economic realities and operational inefficiencies. As the closures of these underperforming stores unfold, Monro Inc. will be focused on building a more resilient framework capable of adapting to market demands and consumer behaviors.