Big Lots to Close 35-40 Stores Amid Economic Challenges

Retail giant Big Lots has announced its decision to shutter 35 to 40 stores this year in the face of challenging economic conditions, as reported by the Arizona Republic. The company is grappling with a tough consumer market, citing macroeconomic challenges such as elevated inflation that have impacted customer buying power.

According to Big Lots’ financial disclosure, sales have seen a significant decline of 10.2% between the first quarters of 2023 and 2024, resulting in a loss of approximately $114.5 million. To cope with the financial strain, the retailer took on an additional $72.2 million, signaling a total increase in debt from $501.6 million to $573.8 million.

The closure of these stores comes as part of a restructuring effort by Big Lots to navigate the current economic landscape. With a reported total of 1,392 operating stores at the beginning of 2024, down from 1,425 in the first quarter of 2023, the company is facing significant challenges in sustaining its operations.

Despite Big Lots’ efforts to weather the storm, uncertainties loom over its future viability. The retailer expressed “substantial doubt” about its ability to continue operations, sparking speculation regarding a potential bankruptcy filing. The lack of disclosure regarding specific store locations has left customers and stakeholders in uncertainty.

Arizona, home to 34 Big Lots locations, with 18 situated in metro Phoenix, may experience repercussions from the store closures. The impact on local economies and employment figures remains to be seen, as the retail landscape continues to evolve amidst economic uncertainties.

Big Lots’ decision to close dozens of stores adds to a growing list of retail and restaurant chains that have faced financial turmoil, with names like JCPenney and Sears declaring bankruptcy. Other industry players, including Macy’s and Gap, have also resorted to store closures in response to changing consumer behavior and market challenges.