Big Lots to close up to 40 stores, and its survival is in doubt
Big Lots plans to shutter three times more stores than it will open in 2024, with the discount retailer pointing to a retreat in spending by its bargain-hunting base.
"We currently expect to open three stores and close 35 to 40," the Columbus, Ohio-based retailer stated in a regulatory filing with the Securities and Exchange Commission. The company also said it expects further operating losses and cited "substantial doubt" about its ability to continue as a going concern.
The retailer's distress call came amid other indications that inflation-weary Americans are tightening their belts and spending less, with U.S. economic growth slowing in the first three months of 2024.
Big Lots last month reported a net loss of $205 million in the quarter ending May 4, 2024, with its president and CEO Bruce Thorn stating at the time that the company's sales had taken a hit "due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items."
The retailer's sales fell 10% to $1 billion in its first quarter, according to Big Lots, which operates more than 1,300 stores in 48 states.
Big Lots did not immediately respond to a request for comment as to the locations of stores facing closure.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York, where she covers business and consumer finance.
