Big Lots plans dozens of store closures this year
(Gray News) - Discount retailer Big Lots said it plans on closing locations, saying its customers are spending less.
The company said it currently expects to open three stores and close 35 to 40 stores this year.
Locations for prospective closures and the timeframe for such closures weren’t disclosed, and the company has not yet responded to a request for more information.
Big Lots said it “expects to experience further operating losses” and has “substantial doubt about the Company’s ability to continue as a going concern,” according to the latest regulatory filing.
Net sales decreased $114.5 million in the first quarter of 2024, or 10.2%, compared to the same time last year.
Big Lots said it “experienced decreased comps and net sales in all of our merchandise categories.”
The retailer also has an increasing long-term debt load, which jumped $72.2 million, from $501.6 million in the first quarter of 2023 to $573.8 million in the first quarter of 2024.
CEO Bruce Thorn, in comments about the first quarter 2024 results, blamed the company’s failure to meet its sales goals on “continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items. We remain focused on managing through the current economic cycle by controlling the controllables.”
The Columbus, Ohio-based company operates more than 1,300 stores in 48 states, as well as an e-commerce store.
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