A massive discount store with 14K locations is now closing stores nationwide this year after it closed several dozens last year.
Big Lots said it plans to close between 35 and 40 stores this year.
The Ohio-based company announced further closures in its June SEC filing.
Big Lots reported that “elevated inflation” has impacted consumers’ buying power, resulting in sufficient financial losses.
“Our net losses and use of cash in operating activities in 2022, 2023, and the first quarter of 2024, as well as our current cash and liquidity projections, raise substantial doubt about our ability to continue,” the report reads.
The company’s net sales decreased by $114.5 million in the first quarter of 2023 compared to the same period in the previous year.
When stores shuttered last year, president and CEO Bruce Thorn said the closures were part of a multi-year plan.
Big Lots announced in late 2023 that locations in New York, North Carolina, and Illinois would close.
“We review our store footprint on an ongoing basis to ensure we’re best positioned to serve our customers and our business successfully,” a spokesperson said.
Big Lots said the closures were “consistent with standard retail prices.”
Then, a store in Leesburg, Virginia, announced it was closing in April.
The location was at the Battlefield Shopping Center, 40 minutes northwest of Washington DC.
Consumers are cutting back on spending on inflation keeps prices high.
Big Lots is just one of many retailers seeing the effects of a dip in consumer spending.
In April, The 99 Cents Only Store filed for bankruptcy and later announced plans to close all 371 locations nationwide.
The business cried rising inflation rates and an inability to keep a profit margin as the reason behind the closure.
After the closures were announced, rival Dollar Tree Inc. acquired the properties of nearly 170 bankrupt 99 Cents Only Stores.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
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