Have you been hearing rumors about Big Lots and asking yourself, “Is Big Lots going out of business?” Well, you’re not alone. With the recent news of store closures and changes within the company, it’s a question that has been popping up in conversations across the country.
While it’s true that Big Lots, like many other retailers, is facing some challenges, the full story is more complex than many of us could think. But the short story is that the brand is not closing up yet. The recent multiple store closures are just a strategic move the company had to make.
In this article, we will take a deeper dive into this topic to help you understand the current situation of Big Lots. So, if you have been asking, ‘Is Big Lots going out of business?’ then keep reading to catch the full gist!
A Quick Look at Big Lots
For those of you who might not be familiar, Big Lots is a big name in the discount retail world. It’s a place where you can find a wide range of products at discount prices – from furniture to groceries, all at bargain prices.
The company started its journey back in 1967 and has since spread its wings across the United States. What sets Big Lots apart? It’s their knack for offering a wide variety of goods at extremely competitive prices, making it a go-to destination for budget-conscious shoppers.
Recently, though, Big Lots has been in the news for a less positive reason – closing multiple stores across the U.S. This development has raised eyebrows and questions about the company’s health and future.
Many are beginning to wonder whether something is wrong with the brand and might likely be shutting down soon. But is Big Lots going out of business, really? Let’s find out!
Is Big Lots Going Out of Business?
Now, to address the elephant in the room: Is Big Lots going out of business? The short answer is no, they’re not shutting down entirely. But, it’s not all smooth sailing either. The company has indeed been closing some of its stores across the U.S.
In 2023, Big Lots closed at least 50 locations and there are plans for more closures in 2024. This might sound alarming, but it seems more like part of a strategic shift rather than a sign of imminent downfall. Big Lots said they are simply revamping their business model and focusing more on locations that promise better profitability.
That sounds reasonable considering how the retail landscape has changed in the last couple of years, affecting many companies and brands. So, if you have noticed many stores of this beloved brand closing down, it is not a sign that Big Lots is completely going down. It looks like a vital decision the brand had to make at this critical time.
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Why is Big Lots Closing Stores?
So, why exactly is Big Lots closing these stores? It’s a mix of reasons, really. One key factor is the current economic climate. Inflation has hit everyone hard, including Big Lots.
Their target demographic, primarily low-income consumers, is feeling the pinch and cutting back on non-essential spending. This change in consumer behavior directly impacts Big Lots’ sales. Because of this, Big Lots is adjusting its strategy to focus more on locations that are more profitable.
Also, Big Lots is reshaping its presence geographically. They are moving away from urban areas, where competition is fierce and operational costs are higher, to more rural locations where they face less competition and can operate more cost-effectively. All these were done to improve the company’s overall financial health.
Which Big Lots Stores Are Closing?
Now that we have been able to answer the question ‘Is Big Lots going out of business?’ and seen the reason for the store closures, let’s delve deeper into the specific Big Lots stores that are closing.
Each store has its own story, and understanding these can give us better insights into the broader picture of what’s happening with the company. So, let’s look at some popular Big Lots stores closing.
New York Closures
- Colonie, New York
This store, located just about 10 miles northwest of downtown Albany, has been a part of the local community for years. Its closure, confirmed for the end of January 2024, came as a bit of a shock to the locals.
The store entered its final liquidation phase, offering significant discounts. The decision to close this store was a strategic one, made after a thorough review of its performance and impact on the company’s broader goals.
- Riverhead, Long Island
Another New York closure is the Riverhead store on Old Country Road. This location, too, has been marked with prominent ‘Store Closing’ signs. It’s a similar story of strategic decision-making, aligning with Big Lots’ overall plan to optimize their store network.
- Newburgh, New York
Interestingly, the story here is a bit different. The Big Lots store in Newburgh is closing temporarily, with plans to relocate to the Mid Valley Mall. This move is a strategic realignment, possibly aiming to capture a more favorable market location.
California Closures
- Citrus Heights: Located on Auburn Blvd, this store’s closure is part of Big Lots’ decision to streamline their operations in California, a state where they have faced stiff competition and operational challenges.
- Dublin: The store on Amador Valley Blvd is another casualty of the company’s restructuring in California. This closure, like others, is part of Big Lots’ strategy to focus on more profitable locations.
- Ridgecrest: Situated on N Tustin Ave, the Ridgecrest store’s closure further underscores Big Lots’ strategic shift in California.
Colorado Closures
- Arvada: Located on Sheridan Blvd, the closure of this store reflects the company’s strategy to move away from urban centers where operational costs are higher.
- Denver: The store on E. Iliff Ave is another example of Big Lots’ strategic retreat from urban locations in Colorado.
- Englewood and Fort Collins: Both locations, on W. Hampden Ave and W. Troutman Pkwy respectively, are part of a broader closure plan in Colorado, a state where Big Lots has decided to scale back its operations.
What is the Financial Status of Big Lots?
When you hear the question, ‘Is Big Lots going out of business?’ it’s natural to think about the direction of the company’s finances. Perhaps they are facing challenges with their finance, which could have been the reason for the multiple store closures.
Well, financially, things have been a bit rocky for Big Lots. The company’s market cap stood at $194.87 million as of early 2024, reflecting a significant decrease from the previous year.
This decline in market capitalization is indicative of the challenges Big Lots is facing in the retail sector, further worsened by a decrease in comparable sales and a net decrease in store count.
The company’s earnings per share (EPS) are also in the negative, signaling financial challenges. However, it’s not all doom and gloom. Despite these challenges, Big Lots is not on the brink of going out of business. They are actively working on strategies to improve their financial health.
Big Lots Stock also Dropping
The company’s stock has also been affected, reflecting the challenges Big Lots is facing. The drop in Big Lots’ stock is attributed to several factors, including the aforementioned sales decline and store closures.
Also, the company’s EPS TTM is reported at $-15.933, with a P/E ratio of -0.45, showing that investors are now skeptical about its short-term profitability.
Is Big Lots Going Out of Business – Final Note
To wrap it all up, while Big Lots is indeed closing some of its stores and facing financial challenges, it’s not going out of business. The company is in a period of transition and strategic realignment. They are focusing on more profitable locations and adapting their business model to the current economic climate.
So, while we might see fewer Big Lots stores in certain areas, the brand itself is not saying goodbye. We might just all need to keep our fingers crossed and watch how the company turns out in the coming few months.
FAQs
Is Big Lots Closing in New York?
Yes, Big Lots is closing several stores in New York. This includes the store in Colonie, just northwest of downtown Albany, which is set to close by the end of January 2024.
Other New York locations like Riverhead on Long Island are also closing. There are some other stores that have also been scheduled to close in the country.
What Big Lots Stores are Closing in California?
In California, Big Lots has announced closures of several stores. Notable closures include the Citrus Heights store on Auburn Blvd, the Dublin store on Amador Valley Blvd, and the Ridgecrest store on N Tustin Ave. These closures are part of Big Lots’ strategy to optimize their store presence in the state.
Is Big Lots Closing in Appleton?
Yes, the Big Lots store in Appleton is also closing. The store displayed its closing signs in December 2023 and was set to close on January 14th. This is part of the wider series of store closures Big Lots is implementing across various states.
How Many Big Lots Stores are There in the US?
As of early 2024, there are 1,430 Big Lots stores across the United States. Texas holds the largest number of Big Lots stores, with about 121 locations, which accounts for roughly 8% of all Big Lots stores in the US.
Does Big Lots Sell Gift Cards?
Yes, Big Lots does sell gift cards. These gift cards are available for purchase at any of their stores or online. Furthermore, Big Lots gift cards can also be used for online purchases at Biglots.com, offering flexibility in how they can be redeemed.
What is the Net Worth of Big Lots?
As of January 11, 2024, Big Lots has a market capitalization or net worth of approximately $194.87 million. This figure represents the company’s total market value as determined by the stock market.
However, it’s worth noting that this is a decrease of about 54.71% from the previous year, reflecting some of the financial challenges the company has been facing.