U.S. News
Big Lots Braces for Massive Closures Amid Declining Sales, Eyes Improvement Strategies
Clear Facts
- Off-price retailer Big Lots may close up to 315 stores across the U.S., dramatically more than the initial prediction of 35-40 store closures in 2024.
- The company’s financial struggles are attributed to declining sales, net losses, and heavy operating expenses. Net sales in the first quarter of 2024 were down by 10.2 percent, or $114.5 million.
- Despite the bleak outlook, Big Lots’ CEO Bruce Thorn maintains a positive stance about the company’s future, referring to several initiatives aimed at enhancing performance and productivity.
Big Lots, a well-known off-price retailer, has been facing significant challenges. In June, it was announced that the company could close between 35 and 40 stores in 2024 due to “substantial doubt” about its ability to continue operations.
A recent SEC filing from Big Lots has suggested a potentially larger number of 315 stores might be shuttered.
Big Lots, which currently operates 1,389 stores in 48 states excluding Hawaii and Alaska, has a significant presence in Texas, Florida, California, and Ohio. The July 31 SEC filing didn’t specify the stores to be closed, however, these locations are now identified on Big Lots’ store locator page with “CLOSING THIS LOCATION” banners. Furthermore, these stores are advertising up to 20% savings, with limited exceptions.
According to reports, a majority of states will lose at least one Big Lots store.
“while the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores,” a Big Lots spokesperson told Retail Dive.
The spokesperson didn’t confirm the total number of stores to be closed but noted that affected employees can request a transfer to another Big Lots store. Moreover, severance pay will be offered to those who are unable to transfer.
Big Lots’ financial health has been deteriorating, with net sales down 10.2 percent, equating to $114.5 million, in the first quarter of 2024 alone. The company also highlighted net losses and heavy operational expenses in 2022, 2023, and this year, as well as current projections as reasons for its ongoing struggle to stay in business.
On June 6, Big Lots CEO Bruce Thorn discussed the company’s financial difficulties.
“While we made substantial progress on improving our business operations in Q1, we missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items,” Thorn said.
Despite the possible closures, Big Lots is launching other initiatives to improve performance, inspired by its “five key actions” to “own bargains, to communicate unmistakable value, to increase store relevance, to win customers for life with our omnichannel efforts, and to drive productivity.”
Despite the struggles, Thorn remains hopeful.
“We still have a lot of work ahead of us, but remain confident that the five key actions are putting us on the right path to turn around our business,” the CEO said.
Let us know what you think, please share your thoughts in the comments below.
Don
August 13, 2024 at 7:01 pm
BIDENOMICS IS WORKING. BIDENOMICS IS WORKING , VOTE DEMOCRATIC FOR MORE OF THE SAME, CLOSE DOWN AMERICA, START WW3, STAND IN SOUP LINES, LIVE UNDER BRIDGES, AS FOR ME AND MINE WERE SMARTER THAN THAT., VOTE STRAIGHT REPUBLICAN TICKET “TRUMP “2024.
Hawkeye 2
August 13, 2024 at 9:41 pm
Big lots used to stand for bargains close out affordable products.Now they’re higher on some products.Done in a regular store that’s one of the main reasons.I believe they’re closing but no longer a discount store
JESUS_IS_LORD
August 14, 2024 at 8:51 am
All this, mostly like because of BIDENOMICS and the Democrat’s Party of ANOTHER failure. Honestly, I don’t think ANY DEMOCRAT has wisdom. They may think they are smart, BUT THEY CERTAINLY HAVE ABSOLUTELY NO WISDOM.
So, America, as DON said, if you want more of the same, vote Democrat. But, then of course, you don’t care about your fellow Americans, do you? Of course you don’t. You will vote straight Democrat ticket and then WONDER why America is falling. THE ANSWER IS BECAUSE OF YOU, THE DEMOCRAT, THE LIBERAL, THE ATHEIST, THE AGNOSTIC, THE FOOL WHO DOESN’T KNOW WHAT THE WORD, “insanity” MEANS. It means DOING THE SAME THING OVER AND OVER AGAIN, EXPECTING DIFFERENT RESULTS. That is INSANITY and the DEMOCRAT PARTY IS THE PARTY OF INSANITY.
HOWEVER, having said all that, GOD WILL STILL HELP AND BE WITH HIS OWN PEOPLE AND CARRY THEM THROUGH while the rest of you atheists, agnostics, and liberals who HAVE NO VALUES, INTEGRITY, OR COMMON SENSE scratch and claw your way out of the VERY HOLE YOU CREATED FOR YOURSELVES.
Then, there are the rest of us who do belong to Jesus. We have prepared for this day and we are doing just fine. WE ARE FRUGAL ANYWAY. WE SAVED ANYWAY. WE DID NOT PUT ENTERTAINMENT FIRST. WE PUT GOD FIRST, THEN OUR FAMILY, THEN AMERICA and in that order.
AS FOR ME AS MY HOUSE (and I hope yours, if you are wise) WE WILL SERVE THE LORD TO THE VERY END!
MARANATHA!
MARGE
August 28, 2024 at 8:01 am
will just say AMEN TO THE ABOVE COMMENTS BELIEVE AND WE WILL SAVE OUR COUNTRY
PLEASE HELP SAVE OUR COUNTRY
THANK YOU
William
October 13, 2024 at 12:36 pm
Is Big Lot the same as Job Ocean Lot! Which I shop often. Any ways I agree with one other comment that they sell some things more expensive than retail stores and should mark them down so more people can shop there,