Big Lots: 35-40 Stores to Close Amid Bankruptcy Concerns

Overview

Discount retailer Big Lots has announced plans to close up to 40 stores in 2024, adding to the growing number of retailers facing bankruptcy. The company reported declining sales and profits in recent quarters, raising concerns about its ability to remain solvent.

Store Closures

Big Lots will close between 35 and 40 stores in 2024, representing approximately 5% of its total store count. The closures will primarily affect underperforming locations and are expected to result in cost savings for the company. However, it is uncertain which specific stores will be impacted by the closures.

New Store Openings

Despite the store closures, Big Lots plans to open three new stores in 2024. These new stores will be located in strategic markets and are expected to contribute to the company's growth in the long term.

Financial Challenges

In its recent earnings call, Big Lots reported declining sales and profits. The company cited challenges such as inflation, supply chain disruptions, and increased competition from online retailers. These factors have put a strain on the company's financial performance and raised concerns about its ability to survive in the current economic environment.

Industry Impact

Big Lots' store closures are part of a broader trend in the retail industry. Several other major retailers, including Bed Bath & Beyond and Pier 1 Imports, have recently filed for bankruptcy. This trend highlights the challenges that traditional brick-and-mortar retailers face in the face of changing consumer behavior and the rise of online shopping.