Big Lots, the discount retailer in America is going to close all of its stores. The announcement was made by the company on Thursday. The company has filed for protection from bankruptcy in September 2024. The reasons to file protection from bankruptcy are the decline in sales, increase in operational costs, and challenges to adapt to online business. The announcement of the closing of all stores by the company is an important decision from the side of the company. Here in this article, we will look into the details of Big Lots stores closing.
About Big lots
Big Lots is a discount retail company founded in 1967. The company has many stores across the United States. The company sells overstock items from other stores and some of the Big Lot store sells furniture. The headquarters of the company is in Columbus, Ohio. Big Lots sells quality products at a discount rate to budget-conscious customers.
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Factors that affected the closing of Big Lot stores.
There are several factors that affected the closure of the Bog Lots Stores. The company was going through a challenging time as the sales and revenue of the company decreased. The decline in the percentage of sales and revenue increased in the past years. The reason behind the decline in sales in the company was the change in customer preferences. Customers now prefer shopping from e-commerce stores rather than traditional stores.
The Big Lot company also faced competition from e-commerce companies like Amazon and Walmart. The online stores offer products at a cheaper rate to the customers. The online stores also offer a wide variety of products so that the customers can select the desired product.
Another factor that led to the downfall of the company was the increase in operational costs. The operational costs of the company have increased over the past few years. The inflation is also another reason for the increase in operational costs. The company could not sell products at a low cost as the transportation costs and labor costs have increased. The initiatives done to modernize the company were not effective.
Future of Big Lots
The Big Lots want to liquidate its assets and the company is working on it. The CEO of the company Bruce Thorn stated that the company is open to acquisitions and partnerships but the most practical solution now is liquidation. The customers are now looking for the best deals in the liquidation sales and the employees of the company have to find other jobs.
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Conclusion
The Big Lots stores are closing in all locations in America. Liquidation sales will soon start at all of the stores. More than 400 stores were already closed this year. The remaining stores will also be closed later. In this article, we have discussed the closing of big lot stores and the factors behind it.
