<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1kmtFr_0utUsOJy00" alt="https://img.particlenews.com/image.php?url=1kmtFr_0utUsOJy00" width="1280" height="720" ></figure>Big Lots is celebrating National Bargain Hunting Week from Aug. 12-18, 2024, with daily “Bargain of the Day” offers featuring discounts of 20% to 75% on items like furniture, pet accessories, and personal care products. The event coincides with National Smile Week, a connection inspired by Debbie Keri-Brown, who created National Bargain Hunting Week to reflect the joy of finding deals. Big Lots aims to attract savvy shoppers with new closeouts, overstocks, and liquidations.Holding this promotion will hopefully prove valuable to Big Lots’ branding and relevance and help bring it back to the forefront of consumers’ minds as a premiere discount retailer.But Big Lots is on the verge of bankruptcy. The retailer is struggling financially and originally planned to close 35 to 40 stores this year amid concerns about a potential bankruptcy filing. Now, according to a regulatory filing, the company has increased this number to as many as 315 stores across the country.“While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores,” a company spokesperson said, as reported by CBS News.The retailer has faced declining sales, a 10.2% drop in revenue between fiscal Q1 2023 and fiscal Q1 2024, and increased long-term debt. In Q1, the company reported a net loss of $205 million, which isn’t much better than a year before when it lost $206.1 million. In June, Big Lots also filed a statement with the SEC that expressed doubts about its ability to continue operations, despite a recent partnership with Uber Eats. This statement is what originally sparked the bankruptcy rumors.It read: “Based on our current cash and liquidity projections, and uncertainties with respect to the mitigating effect of management’s plans, the company has concluded there is a significant likelihood that it will be unable to comply with the Excess Availability Covenant under the 2022 Credit Agreement and the Term Loan Facility within the next 12 months, which raises substantial doubt about the company’s ability to continue as a going concern.”In another effort to boost sales, the retailer acquired the entire inventory of Hearthsong, a well-known children’s toy brand, in February, aiming to boost its reputation for extreme bargains. This acquisition introduced over 500 new products, including indoor and outdoor toys, games, and crafts, all priced 50% to 70% below original retail prices.Yet, despite recent strategies, Big Lots faces ongoing challenges in the retail market. Bargain hunting itself seems to be quite popular, however.A recent survey conducted by Big Lots, in partnership with MarketVision Research, highlights the psychological benefits of bargain shopping and how it “offers consumers even more than budget saving.” According to the survey, 85% of shoppers enjoy the thrill of discovering deals, while 62% find the activity therapeutic. The survey also found that 69% of shoppers engage in bargain hunting out of habit, with popular categories including apparel, pantry staples, seasonal items, décor, furniture, and electronics.Another recent survey concluded that “not only do shoppers experience a measurable ‘high’ from finding a good deal, but they’re also becoming increasingly savvy in their pursuit of savings. With 82% of Americans searching for deals more often than ever before, it’s clear that bargain hunting has become a national pastime of sorts.”Furthermore, the act of bargain hunting has aftereffects, as the typical American enjoys a post-purchase high that lasts exactly 216 minutes, according to the study of 2,000 American adults. “That’s three and a half hours of pure bargain bliss,” the study noted.But if Big Lots’ sales are declining, where are bargain hunters shopping?In December 2023, PYMNTS claimed that “Ollie’s Bargain Outlet is standing out as the go-to place for discounts.” Financial reports at the time showed that the retailer had improved significantly in nearly all areas, with over 60% of its product categories yielding positive gains. In a more recent earnings report from June, Ollie’s also shared positive results, such as an increase of 10.8% in total net sales to $508.8 million and a net income increase of 49.6% to $46.3 million.With more than 500 locations, Ollie’s benefits from a significant edge in securing deals across a wide range of products and suppliers. Its robust deal pipeline highlights the crucial role that bargains play in driving Ollie’s business, according to PYMNTS. Additionally, the Ollie’s Army membership program continues to expand, with “a nearly 5% increase compared to the previous year, making up over 80% of sales in the quarter,” as of last December.Home Textiles Today also commended Ollie’s by explaining how “the chain saw visits jump 13.0% year-over-year in 2023, hitting the sweet spot among both budget-conscious consumers and rural shoppers.” Ollie’s trade area also includes a higher proportion of blue-collar suburbs and suburban Boomer regions compared to other discount and dollar store competitors. This “diverse audience base seems to be setting it apart from other discount retailers,” per Placer.ai.TJX Companies, which is classified as an off-price department store corporation, also seems to be doing well when it comes to bargain shoppers. The brand’s “treasure hunt experience continues to broaden its appeal across income and age groups,” according to CEO Ernie Herrman during a recent earnings call. “Our off-price business model is extremely flexible and resilient and I believe we are set up for a long runway of exciting growth in our geographies around the world.”And as noted by RetailWire BrainTrust member Jeff Sward, TJX just might have the most bulletproof business model in the retail market today.</div></body>

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Is Bargain Hunting Enough To Keep Big Lots Afloat?

Big Lots is celebrating National Bargain Hunting Week from Aug. 12-18, 2024, with daily “Bargain of the Day” offers featuring discounts of 20% to 75% on items like furniture, pet accessories, and personal care products. The event coincides with National Smile Week, a connection inspired by Debbie Keri-Brown, who created National Bargain Hunting Week to reflect the joy of finding deals. Big Lots aims to attract savvy shoppers with new closeouts, overstocks, and liquidations.