Big Lots to Close 35-40 Stores as Discount Retailers Struggle
Subtle Decline
Ohio-based discount retailer Big Lots announced that it will be closing 35 to 40 stores this year, citing worsening financials and a tough consumer environment. The company revealed that it had a net loss of $46.3 million in the second quarter of 2023, compared to a profit of $24.4 million during the same period last year.
Financial Difficulties
The store closures are part of a broader strategy to improve Big Lots' financial performance. In its quarterly report, the company acknowledged "substantial doubt about its ability to continue as a going concern." This means that Big Lots may not be able to continue operating for the long term without taking significant financial actions.
Industry Trends
Big Lots is not the first discount retailer to face challenges this year. 99 Cents Only Stores filed for bankruptcy in April, and other retailers like Tuesday Morning and Bed Bath & Beyond have also announced store closures. These closures reflect the broader trend of consumers moving away from brick-and-mortar stores and towards online shopping.
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