Big Lots has been a favorite store for consumers seeking household improvement ideas. The store has won the hearts of many consumers by offering unique furniture and stylish decorative items at affordable prices.
However, with several stores being closed in the recent past, you might ask- is Big Lots going out of business? If you’d like to find out, keep reading to see what I discovered!
Is Big Lots Going Out of Business In 2024?
Big Lots is not going out of business in 2024. Just like other companies, the store has witnessed its fair share of profits and losses within the retail industry. Therefore, to mitigate the extreme effects of losses, the company has closed down all stores in the Canadian market and other underperforming stores.
If you want to find out more information about Big Lots’ state of affairs, whether it is closing for good, and much more, keep reading for more useful facts!
Are Big Lots Stores Going Out of Business?
Big Lots stores are not going out of business, as the company has actually experienced significant growth in online and in-store sales in the last fiscal year.
As a result, the company is strategizing on the continuation of such trends rolling out more stores in strategic locations and closing stores in locations with low customer traffic and sales.
For instance, during the last fiscal year, the company had plans to open 50-60 stores while relocating 20 other stores that were not performing well.
Therefore, the closure of Big Lots stores in some locations does not signify going out of business, but a strategy to increase per-store productivity and reduce losses.
Is Big Lots Closing for Good?
Even though customers have witnessed the closure of some Big Lots stores in the recent past, Big Lots is still one of the major retail stores in the industry.
In the recent past, the company permanently closed down store locations in Canada due to plans on focusing on the American retail landscape.
These moves to exit the Canadian retail industry helped mitigate the effects of stiff competition witnessed by the company in the Canadian market.
In the spirit of improving the company’s sales and net revenue, Big Lots has also closed some underperforming stores in the US and opened more stores in more suitable locations.
Therefore, the closure of some Big Lots stores is not a move to close down permanently but to improve the company’s business operations.
Does Big Lots Still Exist?
Big Lots exists as an American retail company with headquarters in Columbus, Ohio.
Although Big Lots has previously experienced a rampant closure of some of its stores, the company ensures a replacement of closed stores in other strategic locations for business continuation.
The retailer is widely known as a closeout retailer and exists as one of the largest stores selling household essentials in the United States.
The household essentials include items like furniture, mattresses, bed and bath essentials, home décor, storage items, toys, clothing, patio & garden items, groceries, and much more.
As a result, the store’s existence has been a significant one-stop shop for customers looking for an extensive product range for personalizing the spaces.
How Many Big Lots Are Left?
Currently, there are 1,429 Big Lots stores left in the United States, and the company has a national chain of stores spread across 47 states in the US.
Even with the closure of some stores, the company has been implementing growth strategies that have led to the increment of stores in well-performing locations.
How Is Big Lots Doing Financially?
In the third quarter of the last fiscal year, Big Lots posted a net loss, with its stock falling to almost 5% in premarket trading.
For instance, the Big Lots store based in Columbus, Ohio, reported a net loss of $4.3 million for the quarter ending on 30 October 2021.
The company has attributed the loss to significant interruptions in the supply chain.
Although the company anticipates supply chain challenges in the near term, it hopes to manage these challenges by forming partnerships with its manufacturing and transportation partners.
The company also plans to create new capacity with its forward distribution centers and expand gross margins in the next fiscal year through promotional and pricing optimization.
Is Big Lots a Stable Company?
Big Lots is a relatively stable company that generates profits and strong cash flows, even though it experiences seasonal losses.
The company invests in strategies such as improving margins and profitability and creating shareholder value through financial engineering to maintain the company’s stability.
Big Lost is not going out of business, and although customers have witnessed the closure of several stores, Big Lots replaces its stores in better-performing locations for business continuity.