Big Lots to Close Nearly 300 Stores Amid Financial Woes

Big Lots, a discount retailer, has announced plans to close approximately 300 stores nationwide, including around three dozen by the end of this year. Among the closures, 11 stores are in Michigan, reducing the total number of Big Lots locations in the state from 46 to 35. This decision is part of a broader strategy to address financial challenges the company is facing, including a significant net loss of $205 million in the first quarter of fiscal 2024.

The company has reported difficulties in meeting sales goals due to reduced consumer spending, especially on high-ticket discretionary items. Big Lots has also indicated "substantial doubt" about its ability to continue as a going concern. The closures are expected to be more extensive than the number of new store openings planned for 2024, with projections suggesting three times more closures than openings. As part of the closures, Big Lots has already listed specific locations across various states, including significant reductions in areas like the Bay Area in California and Palm Beach County in Florida.

The retailer, which operates over 1,300 stores in 48 states, attributes its financial difficulties to increased inflation and a shift in consumer behavior towards online shopping. In response, the company is launching final sales in the closing stores, offering discounts of up to 20%. Big Lots hopes to navigate through the economic challenges by controlling expenses and potentially reducing prices to regain consumer interest.