Big Lots, the discount homeware retailer, is set to close up to 315 stores across the United States as it battles ongoing financial challenges.
This move will eliminate about a quarter of the company’s 1,392 locations.
The Columbus, Ohio-based chain hasn’t released a full list of closures, but affected stores are now marked with “closing this location” banners on the company’s website, alongside 20% off promotions.
The shutdowns will impact stores in several states, including Connecticut, Massachusetts, Michigan, New Hampshire, and Vermont.
This drastic step comes after Big Lots reported losses for ten straight quarters.
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In the first three months of 2024 alone, the company lost $132 million.
CEO Bruce Thorn addressed the company’s strategy in a recent earnings call, emphasizing a renewed focus on extreme bargains.
“We are confident that the steps we are taking will best position the company for the future as we return to our roots, focus on owning the bargain space, and deliver unmistakable value to our customers,” a company spokesperson told Retail Dive.
The retail sector as a whole is facing significant headwinds.
If current trends continue, the U.S. could see nearly 8,000 store closures by the end of 2024.
Other major retailers making similar moves include:
– Macy’s: Closing 150 stores
– Dollar Tree: Shutting 1,000 locations
– Rite Aid: Closing almost 800 stores
Big Lots’ troubles are compounded by shifting consumer behavior.
Americans are cutting back on big-ticket items, especially furniture.
This has left some stores struggling with unsold inventory.
“In the last month we received four of the largest trucks we have seen all year and triple the amount we normally get,” one store manager shared on Reddit. “The warehouse is pretty much full to capacity and none of [it] is selling.”
Financial analysts are closely watching Big Lots’ next moves. “We believe Big Lots is in a tough spot,” said Joe Feldman, an analyst at Telsey Advisory Group, in a recent note.
As Big Lots works to stabilize its business, the company faces an uphill battle in a challenging retail environment.
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Its ability to adapt to changing consumer preferences and deliver value in the competitive discount sector will be crucial for its survival and potential recovery.
