Big Lots May Close 315 Stores

Discount retailer Big Lots has revealed in a recent SEC filing that it may close up to 315 of its locations as part of a strategic move to address underperforming stores. This figure represents a significant increase from the previously permitted 150 closures, reflecting the company's ongoing efforts to streamline operations and enhance profitability. With over 1,300 stores nationwide, Big Lots is taking decisive actions to ensure its long-term viability in a challenging retail environment. A spokesperson for Big Lots emphasized the company's commitment to providing value to customers while executing a clear plan to strengthen its business. The spokesperson noted that while most stores are profitable, the decision to close certain locations was difficult but necessary. The company aims to refocus on its core mission of delivering bargains and unmistakable value, which it believes will better position it for future success. Despite these efforts, Big Lots has expressed concerns about its financial stability, citing "substantial doubt" regarding its ability to continue operations amid a decline in consumer spending due to inflation. CEO Bruce Thorn highlighted the company's focus on navigating the current economic challenges by implementing strategies aimed at driving sales growth and improving gross margins. In a sign of market response, Big Lots shares saw a notable increase of over 21% recently, although they remain down nearly 86.5% since the beginning of the year, indicating the ongoing volatility and challenges facing the retailer.