Big Lots Just Announced An Accelerated Number of Closures
Big Lots has been a beloved discount chain for decades you might have been a loyal shopper since it was known by its former name, Odd Lots. Much like the shopping experience at a Tuesday Morning, T.J. Maxx, or if excuse me for telling my age but Pic n’ Save. You never know what you’re going to find at Big Lots, which carries everything from home decor to beauty supplies to electronics. But if you frequent your local Big Lots or just like to browse when you get the urge to shop, be warned that the retailer has announced an accelerated number of closures.
In January, Big Lots was singing a different tune, announcing plans to open approximately 500 new stores over the next few years, according to a presentation for investors. In 2022 alone, the company had plans to open 50 new stores, with 80 or more opening per year after that.
Prior to that announcement, Big Lots had a flat store count for a decade, the company said, noting that they were introducing a “store intervention program” to reduce the number of closures. According to recent statements from executives, however, the situation has changed, and the number of closing stores is picking up.
During a Dec. 1 earnings call outlining results from the third fiscal quarter of 2022, Jonathan Ramsden, executive vice president, chief financial officer, and administrative officer for Big Lots, stated that the retailer has “an accelerated number of closures” planned.
According to Ramsden, the closures are intended to increase revenue, as Big Lots will be selling store properties that it owns. Other sites are “underperforming,” he said, which is why the company is looking to speed up the closure process.
“The closures this year will end up being somewhat higher than the openings,” Ramsden said. “Going forward, we would hope and expect to return to a normalized level of closures, but we’ll certainly continue to look closely at underperforming stores.”
