MJP –
After blaming economic factors for its shrinkage, the CEO of a big Ohio retailer announced the closure of hundreds of shops countrywide.
The current economic crisis, according to Big Lots CEO Bruce Thorn, has soured customers and reduced profits. The company has had a rough few quarters.
In the first quarter, it lost $132.3 million on revenues of $1.01 billion, a decline of 10.2%.
According to Thorn, sales fell short of expectations in Q1 despite significant improvements in company operations. This was mainly caused by a persistent decline in spending by Thorn’s core consumers, especially on expensive discretionary products.
Up to 315 Big Lots locations could be shuttered in the US as of right now.
This is a rise from their earlier intentions to shutter as many as 150 outlets.
The objective is to tackle the company’s liquidity problems and reduce losses as much as possible.
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Big Lots has decided against filing for bankruptcy, even though they have a substantial plan to close stores.
About 1,000 of the company’s outlets are still open for business as of the beginning of August.
The 350 stores that Big Lots plans to close—almost 20% of their entire store footprint—will undoubtedly have a major effect on the company’s future operations and financial results.
Big Lots has not yet filed for bankruptcy, but it is attempting to stabilize its business and financial situation by significantly reducing its physical retail presence.
The scale of the shop closures shows that the retailer is trying to tackle big problems with this massive reorganization.
The steps being taken will best position the company for the future, according to a Big Lots representative. The spokesperson added that the company is returning to its roots, focusing on owning the discount area, and delivering undeniable value to customers.
