Big Lots Plans Store Closures Amid Financial Struggles
- Big Lots has announced in an SEC filing that it will close 35 to 40 stores this year while opening three new locations.
- This decision comes despite the company operating over 1,300 stores across the United States.
- The store closures reflect ongoing challenges in the retail sector, impacting employment and local economies.
Discount retailer Big Lots has announced plans to close "35 to 40" stores by the end of the year, as detailed in a recent U.S. Securities & Exchange Commission (SEC) filing. The Ohio-based company, which operates over 1,300 locations across 48 states, expressed "substantial doubt" about its ability to continue operations due to a significant decline in consumer spending, largely attributed to inflationary pressures. In its latest earnings report, Big Lots revealed a staggering net loss of $205 million for the first quarter of fiscal year 2024, which concluded on May 4. This figure represents a 10.2% decrease in net sales compared to the same period last year. CEO Bruce Thorn acknowledged the challenges faced by the company, particularly in high-ticket discretionary items, and emphasized the need for aggressive actions to improve sales and maintain gross margin rates. Despite these setbacks, Big Lots remains committed to its mission of providing affordable products across various categories, including home goods and seasonal items. The retailer currently employs approximately 35,000 associates and aims to open three new stores this year, although it has not disclosed the specific locations of the impending closures. Concerns about the company's financial viability have been mounting since 2022, with reports indicating that Big Lots has been relying on dwindling cash reserves, raising fears of potential bankruptcy. The company has yet to respond to inquiries regarding its future plans.