Major US discount retailer to close as many as 315 stores as retail apocalypse gathers pace

Big Lots is closing 315 stores in multiple states due to mounting financial problems.

The discount home goods chain has identified dozens of locations in states including Connecticut, Massachusetts, Michigan, New Hampshire and Vermont that are set to close.

The Columbus, Ohio-based chain has not released a full list of closures. But stores going out of business will display a “Closing This Location” banner on their websitewith a 20 percent discount.

This comes after the retailer announced in June that it would close 40 of its 1,392 stores as losses mounted.

Big Lots has seen its revenues decline consistently over the past 10 quarters, and it lost a staggering $132 million in the first three months of 2024.

The possible closures come after changes to credit and lending terms were detailed in a report by the U.S. Securities and Exchange Commission. submit on Friday.

Previous terms with lenders had allowed the troubled company to close up to 150 underperforming stores, Shopping Dive reported. Now it may close more in an effort to cut costs amid rapidly declining sales and rising expenses.

If Big Lots closes the full number of stores allowed under the revised terms, it would reduce the number of physical stores by nearly 23 percent.

The news comes less than two months after Big Lots warned that the company may default on its loans.

Regarding the latest closures, a company spokesperson told Retail Dive: “While most of our stores are profitable, we have made the difficult decision to close certain underperforming stores.”

“We are confident that the steps we are taking will put the company in the best position for the future, returning to our roots, focusing on owning the bargain market and delivering undeniable value to our customers.”

During the company’s latest earnings presentation, CEO Bruce Thorn said the company is looking to expand its extreme bargain offering.

He said Americans are cutting back on expensive purchases, especially furniture.

“We believe Big Lots is in a difficult position,” Joe Feldman, an analyst at Telsey Advisory Group, said in a note.

On Reddit, Big Lots store managers are complaining that they are increasingly receiving inventory that customers are not buying.

“This past month we have received four of the largest trucks we have seen all year, three times the normal number,” one wrote.

The warehouse is almost full and no one from [it] sells.’

Another posted: ‘Isn’t that the weirdest thing? So much stuff, but none of it is what people want.’

Locations that go out of business, such as one in Seekonk, Massachusetts, display a banner on their website that reads, “This location is closing,” along with a 20 percent off promotion

Big Lots, with more than 1,000 stores in the US, is known for its discounted items

The store sells furniture and household items in addition to toys, beauty products and groceries

The troubles for Big Lots come amid a widespread “retail apocalypse,” with stores struggling with declining consumer traffic and increasingly tight margins.

There have been nearly 2,600 store closures so far in 2024.

Walmart has closed three more underperforming locations in recent months, while Rite Aid announced it will close 27 more pharmacies.

Dollar stores have also been hit hard: 99 Cents Only announced in April that it would close all 371 of its locations in California, Texas, Arizona and Nevada.

Also, 1,000 Family Dollars and Dollar Trees will close permanently in the coming years.