Off-price retailer Big Lots has been making headlines for some time now—and the news hasn't necessarily been positive. In June, the retailer announced plans to close between 35 and 40 stores in 2024, citing "substantial doubt" about its ability to continue. Now, the situation seems even more dire. In a recent filing with the U.S. Securities and Exchange Commission (SEC), Big Lots upped the number of potential closures to a whopping 315 stores.
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The retailer currently operates 1,389 stores in 48 states (excluding Hawaii and Alaska), with the largest presence in Texas (116 stores), Florida (106 stores), California (109 stores), and Ohio (102 stores). While the July 31 SEC filing didn't name the closing stores, they have been identified on Big Lots' store locator page. Stores on the chopping block have banners that read "CLOSING THIS LOCATION," also advertising up to 20 percent savings, with "limited exceptions."
Per the website, the majority of states are losing at least one Big Lots store. Idaho has been spared closures, however, as all six stores will remain open for now. All three of Iowa's stores will stay open, and so will the 12 Big Lots stores in Mississippi. Nebraska, New Mexico, North Dakota, Oklahoma, Rhode Island, Texas, and West Virginia were also spared during this round of closures. If you want to check a specific location, visit the retailers' location page and look for that "Closing This Location" banner in orange.
"While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores," a Big Lots spokesperson told Retail Dive. "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."
The spokesperson didn't confirm how many stores will be shuttered in total but noted that employees affected by the closures can request a transfer to another Big Lots store. They also told Retail Dive that severance pay will be offered to those who can't transfer.
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Big Lots has reported declining sales, with net sales down by 10.2. percent ($114.5 million) in the first quarter of 2024. The company cited "net losses and use of cash in operating expenses" in 2022, 2023, and this year, as well as current projections, as reasons it may not stay afloat.
In a June 6 press release outlining results from the first fiscal quarter, Big Lots CEO Bruce Thorn shed some light on the retailer's financial struggles.
"While we made substantial progress on improving our business operations in Q1, we missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items," Thorn said.
In addition to closing stores, Big Lots is taking other initiatives to improve performance, driven by its "five key actions" to "own bargains, to communicate unmistakable value, to increase store relevance, to win customers for life with our omnichannel efforts, and to drive productivity."
With this in mind, Thorn has expressed optimism moving forward.
"We still have a lot of work ahead of us, but remain confident that the five key actions are putting us on the right path to turn around our business," the CEO said in the June release.
Best Life reached out to Big Lots for comment on the latest round of closures and will update the story when we hear back.
