Big lot is a well known retail chain that offers discount products to Americans. However, the brand is closing hundreds of its store locations across the United States.
This is coming after the company recorded a loss of $205million due to a 10% decrease in sales as at June 2024 because of customers cutting back on spending. However as of June, the company stated that 40 of its store locations will be closed.
Currently, Big Lot continues to grapple with its finances thus announcing that hundreds of its 1,389 store locations will be closing nationwide, making a lot of Americans wonder if the brand is about to fold and go out of business.
Is Big Lot going out of business
Speculations continue to rise in the minds of some Americans on the future of Big lots.
According to a report by CBS News, the company’s spokesman stated that “While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores”.
With its current financial challenges, some believe that the retail brand will crash, however, the company is yet to announce that it will go out of business.
The retail environment is quite competitive with the birth of so many brands providing more options and alternatives to consumers.
In 2024, the brand’s financial woes became more apparent as Big Lots reported its declining sales and consequentially, a decrease in the brand’s profit.
With the decrease in profit, the brand can no longer sustain all its store locations across the country thus declaring its intentions to close over 300 store locations nationwide.
While these closures are intended to channel the company’s resources to more profitable areas and increase its profit, it has fueled rumors that the company will soon be out of business.
Regardless, Big Lot remains operational for now.
Whether or not the company will eventually go out of business, is uncertain at the moment.
Why are so many stores closing
Most store closures are as a result of the need to address financial challenges and improve overall business performance.
Many brands are finding it difficult to keep up with the dynamic retail environment and the regular shift in consumer behavior.
As a result most retail brands are under immense pressure to meet up with the dynamics of the retail space thus undertaking a review of store locations to delete underperforming stores and channel its limited resources to more profitable locations.
Stores that are slated to close are typically ones that, on review, have not been meeting up with the sales target or those that are unprofitable .
Overall, by closing underperforming or unprofitable store locations, stores can easily focus their energy, time and resources on their profitable stores, thus promoting brand growth.
