UPDATE 2-Advance Auto names Best Buy executive CEO

(Adds comments from incoming CEO, analysts' remarks, stock movement)

By David Bailey

CHICAGO, Nov 29 (Reuters) - Retailer Advance Auto Parts Inc (AAP.N) said on Thursday it had named Best Buy Co Inc (BBY.N) executive Darren Jackson as chief executive and president effective in January, sending the part seller's shares up 3.6 percent.

Analysts lauded the choice of Jackson by Advance Auto, which has slowed the pace of new store openings and has made other changes to adjust to higher gasoline prices that have strained the pocketbooks of its customers.

Jackson, 43, has served on Advance Auto's board since 2004 and will succeed John Brouillard Jan. 7. Jackson was named Best Buy's executive vice president of customer operating groups in September after seven years as chief financial officer at the consumer electronics retailer.

Best Buy said Jackson expected to resign effective Dec. 7.

Roanoke, Virginia-based Advance Auto operates the second largest U.S. auto parts retail chain behind AutoZone Inc (AZO.N). The company has more than 3,200 stores.

"We see this as a very favorable development for Advance Auto Parts," Goldman Sachs analyst Matthew Fassler said in a research note. "In a sector lean on talent, Advance Auto Parts was able to secure a rare lateral move by a top manager."

Fassler said Jackson clearly supports the strategy already started at Advance Auto and he should bring strength to the retailer's financial and analytical processes.

Brouillard, who will assume the position of nonexecutive chairman, has been interim CEO, president and chairman since Michael Coppola resigned in May. Brouillard was named to the board in 2004.

Jackson, in a telephone interview with Reuters, said Advance Auto's focus on improving its supply chain, returns from new stores and adjusting inventories already pointed Advance Auto in the right direction.

"I'm certain there will be some additional changes," Jackson said. "If you tried to pin me down on what they are, I would tell you it was premature."

Advance Auto has pared its store opening plans in 2007 and 2008, cut back on store relocations and has been reevaluating a remodeling program. It also has cut some store support and field organization jobs.

Jackson said Advance Auto's 2008 focus will include managing through the changes to the company amid an uncertain economic environment.

"If you can tell me where the economy is going to come out, and gas prices, than I can give you different lists of challenges," Jackson said.

He hoped recent indications the Federal Reserve may cut interest rates would be a positive sign for retailers.