Big Lots is planning to close 35 to 40 stores this year, including several locations in Michigan. The discount retailer, which is headquartered in Columbus, Ohio, currently operates more than 1,392 stores across 48 states. This information was disclosed in a filing with the U.S. Securities and Exchange Commission in June, where the company outlined its plan not only to close these stores but also to open three new ones.
The exterior of a Big Lots store in Sheboygan, Wisconsin, displayed a closing sign on Tuesday, July 23, 2024, marking it as one of the locations affected by the company’s restructuring plans. In Michigan, there are 46 Big Lots stores, and four of these have been listed on the company’s website as slated for closure. The specific stores closing in Michigan are in Kentwood, Okemos, Portage, and Ypsilanti.
In the SEC filing, Big Lots revealed that it had experienced net losses in 2022, 2023, and the first quarter of 2024. These financial struggles are attributed to ongoing negative macroeconomic factors, which have created uncertainty in the company’s business operations, results, and cash flows. The company anticipates continued operating losses and potential difficulties in maintaining compliance with financial covenants due to these economic challenges.
To combat these issues, Big Lots is implementing several strategies aimed at reducing costs, improving sales, and enhancing its financial flexibility and liquidity. The company acknowledged that in 2024, the U.S. economy has been facing significant challenges, particularly elevated inflation, which has negatively impacted the purchasing power of its customers. This economic pressure has been a significant factor in the company’s decision to close multiple stores.
Despite these closures, Big Lots is committed to serving its customers and ensuring the company’s long-term viability. The company is focusing on streamlining its operations and making strategic adjustments to navigate the challenging economic landscape. By reducing operational costs and improving sales, Big Lots hopes to stabilize its financial position and continue to offer value to its customers amidst these difficult times.