Big Lots is closing up to 315 stores in several states as it faces mounting financial problems.
The discount home goods chain has identified dozens of locations in states including Connecticut, Massachusetts, Michigan, New Hampshire and Vermont that are on the verge of closing.
The Columbus, Ohio-based chain has not released a complete list of closures, but stores that will close display a sign that says “This location is closing” on their websitealong with a 20 percent off promotion.
This comes after the retailer announced in June that it would close up to 40 of its 1,392 stores as losses mounted.
Big Lots has seen its revenue decline steadily for each of the past ten quarters. And it lost a whopping $132 million in the first three months of 2024.
The discount home goods chain has identified dozens of locations across several states that will close (pictured: an affected store in Manassas, Virginia)
The potential closures come as the U.S. Securities and Exchange Commission has revised its credit and lending terms. presentation on Friday.
Previous terms with lenders had allowed the beleaguered company to close as many as 150 underperforming stores, Diving into retail Now it may be closing more in an attempt to cut costs at a time of rapidly falling sales and rising costs.
If Big Lots closes the full number of stores allowed under the updated terms, it would mean a nearly 23 percent cut in its physical store space.
The news comes less than two months after Big Lots warned it might not be able to make its loan payments.
Commenting on the latest closures, a company spokesperson told Retail Dive: “While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores.”
“We are confident that the steps we are taking will better position the company for the future as we return to our roots, focus on owning the offering space and deliver unmistakable value to our customers.”
During the company’s latest earnings conference call, CEO Bruce Thorn said the company wants to expand its offering of extremely affordable products.
He said Americans were cutting back on spending on big-ticket items, especially furniture.
“We think Big Lots is in a tough spot,” Joe Feldman, an analyst at Telsey Advisory Group, said in a note.
On Reddit, Big Lots store managers have complained that they are receiving more and more inventory that customers don’t buy.
“In the last month we received four of the largest trucks we’ve seen all year and triple the amount we normally receive,” one wrote.
‘The warehouse is practically full and nothing is being sold.’
Another posted: “Isn’t that the weirdest thing? There are so many things, but none of them are what people want.”
Establishments that are closing, such as one in Seekonk, Massachusetts, display a “closing this location” banner on the website, along with a 20 percent off promotion.
Big Lots, which has more than 1,000 stores across the United States, is known for its discounted items.
The store sells furniture and home goods, as well as toys, beauty products and groceries.
The troubles for Big Lots come amid a widespread “retail apocalypse” that is seeing stores struggle with consumer pushback and increasingly tight margins.
Nearly 2,600 store closures have occurred so far in 2024.
In recent months, Walmart has closed three more underperforming locations, while Rite Aid said it will close another 27 pharmacies.
Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 of its stores in California, Texas, Arizona and Nevada.
Similarly, 1,000 Family Dollars and Dollar Trees will close permanently in the coming years.
