WFCN —
A huge discount retailer with 14,000 outlets is continuing its trend of store closures from last year, with hundreds more set to close this year.
According to Big Lots, 35–40 locations would be shuttered this year.
In its June SEC filing, the Ohio-based corporation disclosed additional closures.
Big Lots stated that customers’ purchasing power has been affected by “elevated inflation,” leading to significant financial setbacks.
The assessment states that there is serious doubt regarding the company’s capacity to continue due to its net losses and cash used in operational activities in 2022, 2023, and the first quarter of 2024, along with its existing cash and liquidity estimates.
When comparing the first quarter of 2023 to the same time in the previous year, the company’s net revenues fell by $114.5 million.
Store closures last year were justified by president and CEO Bruce Thorn, who stated that the plan would continue for several years.
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In late 2023, Big Lots made the announcement that stores in Illinois, North Carolina, and New York would be closing.
The representative assured that the company always assesses its retail presence to see how it can best serve its consumers and grow its business.
Closures were “consistent with standard retail prices,” according to Big Lots.
The following month, April saw the closure of a store in Leesburg, Virginia.
Forty minutes northwest of Washington DC was the Battlefield Shopping Center, where it was held.
As a result of inflation keeping prices high, consumers are cutting back on spending.
A decline in consumer spending is having an impact on numerous shops, including Big Lots.
Following its April bankruptcy filing, The 99 Cents Only Store announced in June that it will be closing all 371 of its stores across the country.
Inflation and the company’s inability to maintain a profit margin were cited as the reasons for the closure.
The announcement of the closures was followed by the acquisition of approximately 170 bankrupt 99 Cents Only Stores’ properties by rival Dollar Tree Inc.
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