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Discount retailer Big Lots is set to close between 35 and 40 stores this year, it announced in an SEC filing last month, the latest sign of the tough post-pandemic retail environment.
The chain, which has about 1,400 stores nationwide, cited factors like inflation as part of the decision. In the first quarter of 2024, Big Lots reported a 10.2 percent decrease in sales over the same period last year.
“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,” CEO Bruce Thorn said in June.
The retailer hasn’t announced a full list of stores it plans to close.
An analysis by Nextstar found 89 stores across 27 states with closure notices on their websites.
Recent months have been tough across the retail and chain sector. Red Lobster, Rite Aid, and Bed Bath and Beyond have all filed for bankruptcy protection in the last two years.
Inflation remains higher than the Federal Reserve’s 2 percent target, though it has declined from its 2022 peak of 9.1 percent. The consumer price index rose 3 percent in June, compared to the same period last year, down from 3.3 percent in May.
“While inflation is moderating, prices for necessities like housing, food, and gasoline remain elevated and continue to pressure the low- to moderate-income customers’ discretionary spend,” Ross Stores chief financial officer Adam Orvos said on an earnings call earlier this year.
