Discount retailer Big Lots is planning to close 35 to 40 stores this year due to worsening financials and a challenging consumer market. This decision comes as the company faces macroeconomic challenges, including elevated inflation, which has impacted the buying power of its customers. Big Lots reported 1,392 operating stores at the beginning of 2024, down from 1,425 in the first quarter of 2023. The retailer, like many others, has experienced declining sales as a result of rising prices and reduced consumer spending. Sales dropped by 10.2% between the first quarters of 2023 and 2024, resulting in a loss of approximately $114.5 million, according to the company’s financial disclosure.
In the first quarter of this year, the company acquired an extra $72.2 million, increasing the total from $501.6 million in the first quarter of 2023 to $573.8 million. Additionally, the company expressed significant concerns about its ability to sustain operations, fueling speculation about a potential bankruptcy filing.
Unfortunately, the document did not provide details regarding the specific store closures. Despite requests for comment and closure information, Big Lots has not yet responded.