Giant retailer Big Lots is reportedly set to close almost 300 stores across the United States. The company recorded a net loss of more than $200 million for the first quarter of their fiscal year. Net sales for this period amounted to a little over $1 billion, which was 10.2% less compared to sales for the same period in 2023.
The discount store company attributed the drop to a “challenging consumer environment.”
According to their website, there are almost 300 locations that are headed for closing soon, although no date has been indicated for when they will cease operations. This number comprises more than 20% of the listed 1,389 branches of the chain across the United States.
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This is one of the most stunning collapses from an established retailer...
Big Lots has gone from $70+ a share to $1 and near bankruptcy
Unfortunately, retail is in for a rude awakening
There will be a massive wave of retail companies/restaurants that'll crumble over the next… pic.twitter.com/2zxnHlHayS
— Triple Net Investor (@TripleNetInvest) July 31, 2024
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Big Lots branches closing in 2024: Complete list per state
California will see the most closures, with 75 out of 109 stores set to be shuttered. Florida comes next with 26 locations to be shuttered, while 18 branches will close up shop in Washington. Big Lots will shut down locations in 36 states.
Here is the list of store locations that will close throughout the country according to state.
In a June SEC filing, Big Lots, which has about 1,390 stores nationwide, said it was planning to close between 35 to 40 stores in 2024. In the same filing, the company also warned of its ability to survive as a "going concern.”
PALM BEACH COUNTY, Fla. (CBS12) — Big Lots retailer is set to close store locations in Palm Beach County and the Treasure Coast as it struggles with a decline in spending by its core customer base, according to CBS News. Discount retailer Big Lots is set to close three times more stores than it plans to open in 2024.
“Big Lots remains in a precarious financial position as it is still making huge losses and is burning through cash,” Saunders said. “That said, the company has secured liquidity via a new loan, so this and its current cash generation should tide it over in the near term. But it remains in the danger zone.”
“We missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items,” Big Lots President Bruce Thorn said in a statement. “We remain focused on managing through the current economic cycle by controlling the controllables.”
In 2001 our array of store names and company identity were converted to a single national brand: Big Lots. For our customers, a common national brand represents consistency and buying power. And for our 35,000 associates, the Big Lots name reinforces a shared company culture from coast to coast.
Discount retail chain Big Lots will be shutting down over 50 stores in California, including 15 in Southern California. The closures come after the retailer reported a net loss of $205 million in the quarter ending May 4, 2024.
The ownership structure of Big Lots (BIG) stock is a mix of institutional, retail and individual investors. Approximately 35.43% of the company's stock is owned by Institutional Investors, 26.22% is owned by Insiders and 38.34% is owned by Public Companies and Individual Investors.
Shortly afterward, Melville purchased Revco and folded it into the CVS Pharmacy chain on its way to becoming CVS Health, making the "Odd Lots" dispute moot. In 1998, Big Lots Inc. bought out 'MacFrugals' (Pic 'N' Save) stores for $995 million in stock, converting them to the Big Lots brand.
Shrinking presence. In 2022, Big Lots opened 56 stores while still closing 62. At the time, the company said it planned to eventually open more than 500 stores after a decade-long pause on expansion. In 2024, however, Big Lots only announced plans to open three stores while closing dozens of locations.
Based on 4 Wall Street analysts offering 12 month price targets for Big Lots in the last 3 months. The average price target is $1.83 with a high forecast of $2.50 and a low forecast of $1.00. The average price target represents a 89.30% change from the last price of $0.97.
Three retail stores that come immediately to mind are Ross Stores, Marshall's and Big Lots. They acquire the inventory for their own stores in two ways: They purchase unsold merchandise from large retailers like Macy's and Nordstrom's and then sell it at greatly reduced prices in their own retail stores.
Big Lots Inc.'s stock slid 21% Thursday, after the discount-home-essentials retailer posted a wider-than-expected fiscal first-quarter loss as consumers remained stressed and avoided big-ticket items.
The company's losses in recent quarters — including $205 million in the first quarter — and its use of hundreds of millions of dollars of cash since 2022 to fund operations are among the reasons it said “substantial doubt” has been raised about its ability to continue operations.
Shortly afterward, Melville purchased Revco and folded it into the CVS Pharmacy chain on its way to becoming CVS Health, making the "Odd Lots" dispute moot. In 1998, Big Lots Inc. bought out 'MacFrugals' (Pic 'N' Save) stores for $995 million in stock, converting them to the Big Lots brand.
Big Lots has 89.30% upside potential, based on the analysts' average price target. Is BIG a Buy, Sell or Hold? Big Lots has a consensus rating of Moderate Sell which is based on 0 buy ratings, 2 hold ratings and 2 sell ratings.
The ownership structure of Big Lots (BIG) stock is a mix of institutional, retail and individual investors. Approximately 35.43% of the company's stock is owned by Institutional Investors, 26.22% is owned by Insiders and 38.34% is owned by Public Companies and Individual Investors.
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