Is Big Lots going out of business? Big Lots is a retailer that offers advice to customers on how to improve their houses. Customers adore the store because it sells elegant home decor and one-of-a-kind furnishings at reasonable prices.
Even though there are more than 1,700 locations in the US, the referred-to store will permanently close in March 2020. Following an ongoing movement when it was first disclosed earlier this month, Big Lots is continuing its rounds of shop closures in the United States.
The firm will close more stores in the upcoming months to boost sales. This was according to Jonathan Ramsden, executive vice president of Big Lots, who announced on Dec. 1 during an earnings call.
Ramsden predicted that “there would be more closures than openings this year.” He said they would hope and anticipate a return to a normalized level of shop closures, although they are undoubtedly keeping an eye on failing locations.
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Underperforming stores are closed by Big Lots
Big Lots CEO Bruce Thorn explained the upcoming closures by saying that consumers’ discretionary (or non-essential, disposable) income has been impacted by inflation. Ramsden added that store openings would continue through 2023 but at a slower rate. Even though net sales are already down 9.8%, the plans will concentrate more on rural areas.
The shop closings at Big Lots fit into a more significant current trend of businesses closing locations. It is done to cut costs ahead of a potential downturn.
Local communities throughout the country will be impacted as Big Lots starts closing stores. The Big Lots locations closing in the upcoming months are listed below.
- 8525 Auburn Boulevard, Citrus Heights, California 95610
- 7991 Amador Valley Boulevard, Dublin, CA 94568, Dublin, California
- Ridgecrest, California: Santa Ana, CA 92705, 2360–2390 N Tustin Ave
Is Big Lots going out of business?
Big Lots was singing a different tune in January. In a presentation for investors, it announced intentions to open over 500 new stores over the following few years. The corporation intended to launch 50 new stores in 2022 alone, with 80 or more following that year.
Big Lots had a “flat store count” before that declaration. Hence, it was mentioned that a “store intervention program” was being implemented to lessen the number of closures.
However, the situation has changed, and the number of stores closing is increasing, according to recent corporate statements.
Ramsden said that the store has “an increased amount of closures” planned during an earnings call on Dec. 1. Big Lots will be selling store locations it owns. Ramsden claims that the closures are aimed at boosting revenue. He claimed that other sites are “underperforming,” which is why the business is trying to hasten the closing process.
Ramsden predicted that “there would be more closures than openings this year.” Going ahead, we expect a return to a normalized level of shop closures, although we’ll undoubtedly keep an eye on failing locations.
Thus, we observed that store closings are currently exceeding store openings. Ramsden pointed out that Big Lots’ objectives continue to focus on growth. In 2022, the company plans to open 50 new locations while closing “similar or somewhat more” stores. This rate of openings will slow down in 2023; according to Ramsden, there will be fewer than in 2022.
Stores in rural and small-town markets are the main focus of the overall shop strategy. It comes from Big Lots’ lower operating expenses and lesser levels of competition, particularly in the home categories. With a focus on furniture and home items, they could modify their shop portfolio to appeal more to these rural and small-town markets.
Do Big Lots Still Exist?
Americans are referred to as “Big Lots” since they are a relatively large nation with many things to purchase. Before, Big Lots had a problem where some of its stores closed for lack of a good business plan. In other cases, Big Lots invests in new stores and maintains corporate operations.
This retailer is well-known in the marketplace and a well-liked place to acquire furniture and other household goods. The majority of significant cities frequently have it. Having the best products at the lowest prices is critical. This store is well-known for its extensive product selection, with nearly every item being customer-customizable in the store’s workshops.
Conclusion
Customers have observed various retail closings, but Big Lots is not going out of business right now. This indicates that Big Lots is trying to replace stores in higher-performing areas. Whether the company’s expansion plans persist or additional closures are in the works, Big Lots! Has made no indication that the company is about to close.