In what it is calling a “fundamental change in circumstances” the Advance Auto Parts chain has walked away from a vendor partner deal with Interstate Batteries announced last December.
“We have talked in the past about the importance of suppliers, and external partnership to help us better serve customers, drive sales growth, increase margins and improve cash flow,” said AAP president and CEO Tom Greco in a quarterly call with the investment community May 22. “Inline with these long term financial priorities–, and after several months of discussions with Interstate Batteries, we’ve decided not to proceed with the partnership announced in December.
“The value envisioned by both parties was compelling, but circumstances changed. Our decision was made through the lens of our financial priorities and was in the best interest of our shareholders.”
Battery business was off to a strong start Greco added and further said Advance was strengthening its partnership with the preexisting supplier. Though Greco did not name Johnson Controls, it is generally regarded as the key supplier of the AutoCraft brand and the Optima brand batteries carried by Advance.