A massive Ohio retailer is now closing hundreds of stores nationwide after its CEO blamed economic conditions for its contraction.
Big Lots has struggled in recent quarters, with CEO Bruce Thorn saying a downturned economy has soured customers and hurt profits.
It saw a 10.2% drop in sales to $1.01 billion during Q1 and a loss of $132.3 million.
“While we made substantial progress on improving our business operations in Q1, we missed our sales goals due largely to a continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items,” Thorn said.
Big Lots is now planning to potentially close up to 315 stores across the United States.
This is an increase from their previous plans to close up to 150 stores.
The goal is to try to mitigate losses and address the company’s liquidity issues.
Despite this significant store closure plan, Big Lots has not yet filed for bankruptcy protection.
As of early August, the company still has approximately 1,000 locations that remain operational.
However, the planned closure of 350 stores, which represents over 20% of Big Lots’ total store footprint, will likely have a substantial impact on the retailer’s overall operations and financial performance going forward.
In essence, Big Lots is dramatically scaling back its physical retail presence in an effort to stabilize its business and financial situation, without having filed for bankruptcy at this time.
The scope of the planned store closures indicates the retailer is facing significant challenges that it is attempting to address through this major restructuring.
“We are confident that the steps we are taking will best position the Company for the future as we return to our roots, focus on owning the bargain space, and deliver unmistakable value to our customers,” a spokesperson for Big Lots said.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A beloved grocery chain now confirms unexpected closures across the Northeast taking place by the end of the year.
Grocery chain Stop & Shop has announced that a total of 32 underperforming locations will shutter in the U.S.
The company said the select stores across the Northeast will be closed before the end of the year.
Stores in New Jersey, Massachusetts, New York, Connecticut, and Rhode Island will close by November 2.
In May, the company announced the coming store closures.
“Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand,” company president Gordon Reid said, per a July 12 press release.
The company’s president added that the closures were essential “to create a healthy base for the future growth of our brand.”
Fortunately, employees will be offered other positions within the company, according to a press release.
The grocery outlet first opened in 2014 and currently has around 400 stores and 60,000 employees, per Fox affiliate KRLD.
Stop & Shop is owned by Ahold Delhaize which also owns Food Lion, Giant Food, and Hannaford.
Which grocery stores are closing?
In New Jersey, 10 locations will close, while only seven will close in New York.
Rhode Island will see two closures and Massachusetts, the home of the first location, will be closing eight.
Five stores will also be closing in Connecticut.
As other chains such as Walmart and Amazon join the grocery business, it has pushed traditional grocery stores out of view, reports The-Sun.
Stop & Shop hopes the closure of underperforming stores will create “future growth” for the company.
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