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Instant Analysis: Advance Auto Parts Names a New CEO

What happened?

A new executive will take the wheel at Advance Auto Parts in the very near future. The company named a new CEO, Thomas Greco, who will formally take the position on April 11. Greco replaces interim CEO George Sherman, who will continue as the company's president.

Does it matter?

Plucking a new CEO from the ranks of PepsiCo to run an operator of car-parts stores might seem like an odd move. But like the food and drink purveyor, Advance Auto Parts is a customer-facing company that has to operate in a competitive business against determined rivals both large and small. It's a job that demands a seasoned executive used to fighting for market share, and that's what the company appears to have landed in Greco. I think the news of his appointment will be taken positively by shareholders.

The new boss will certainly not have an easy job. Advance Auto Parts' same-store sales growth turned negative in 2015, in contrast to better-performing rivals like AutoZone . Sales were down slightly in the quarter compared to the same period one year ago, while net profit declined by 35%. Meanwhile, activist investor Starboard Value has agitated for the company to find ways to improve profitability.

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The article Instant Analysis: Advance Auto Parts Names a New CEO originally appeared on Fool.com.

Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends PepsiCo. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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