Get updates delivered to you daily. Free and customizable.
Los Angeles Times
More than 50 Big Lots stores to close in California
By Caroline Petrow-Cohen,
22 hours ago
Big Lots, the discount retail chain known for carrying a wide assortment of goods, is closing more than 50 stores in California. (Julie Gallant)
Big Lots, the discount retail chain known for carrying a wide assortment of goods, is closing more than 50 stores in California amid flagging sales that have thrown the chain's future into question.
In a June filing with the Securities and Exchange Commission, the company said it expects to close 35 to 40 stores in 2024. However, according to closure notices on individual store websites, the actual number will be higher.
Big Lots currently operates 109 stores in California, the second highest in the country behind Texas. There are about 1,400 Big Lots nationwide. The chain is known for offering an extensive and somewhat eclectic collection of items at low prices, including brand-name goods and discount products.
“Our customers may be on a tight budget,” the Big Lots website says, “or they may just enjoy our treasure-hunt atmosphere.”
Big Lots, however, has been struggling. The company reported a net loss of $205 million in the quarter ending May 4 — similar to the $206-million loss it posted for the same period last year. Net sales of around $1 billion in the quarter marked a 10% decrease compared with the same period last year.
Those losses, the rate at which the company has spent down cash reserves in recent years, and gloomy projections for the future "raise substantial doubt about our ability to continue as a going concern," the company wrote in the filing.
Shares of the company closed Monday at $1.04, a nearly 87% decline from the start of the year.
Inflation and rising costs of goods have put pressure on retailers as many customers, especially those on a tight budget who may be drawn to discount chains such as Big Lots, limit their spending.
This year, California-based 99 Cents Only Stores announced the closure of all 371 of its locations, citing inflation and changes in consumer demand.
“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.”
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Local California State
Most Popular
Comments / 0