Major US discount retailer to close as many as 315 stores as retail apocalypse gathers pace

Big Lots is closing up to 315 stores across multiple states as it suffers from growing financial woes. 

The discount homeware chain has identified scores of locations across states such as Connecticut, Massachusetts, Michigan, New Hampshire and Vermont which are due to close.

The Columbus, Ohio-based chain has not published a full list of closures. But stores that are going out of business display a 'closing this location' banner on its website, alongside a 20 percent off promotion. 

It comes after the retailer in June announced it was closing up to 40 of its 1,392 stores  as losses were mounting.

Big Lots has seen its takings fall consistently for each of the past ten quarters. And it lost an eye-watering $132 million in the first three months of 2024.

The possible closures come as a result of amended credit and loan terms in a US Securities and Exchange Commission filing on Friday. 

Previous terms with lenders had allowed the beleaguered company to close up to 150 underperforming stores, Retail Dive reported. Now it can shut more in a bid to cut costs in the fast of falling sales and rising costs.

If Big Lots closes the full number of stores allowed under the updated terms, it would mean an almost 23 percent cut in its brick-and-mortar store footprint. 

The news comes less than two months after Big Lots warned it may not be able to keep up with its loan payments. 

On the latest closures, a company spokesperson told Retail Dive: 'While the majority of our stores are profitable, we have made the difficult decision to close certain underperforming stores.'

'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.'

During the company's last earnings call, CEO Bruce Thorn said it wants to expand its extreme bargain offerings.

He said Americans were cutting back spending on big ticket items, especially for furniture. 

'We believe Big Lots is in a tough spot,' Joe Feldman, an analyst at Telsey Advisory Group, said in a note.

On Reddit, Big Lots store managers have complained that they are getting more and more stock that customers do not buy.

'In the last month we received four of the largest trucks we have seen all year and triple the amount we normally get,' one wrote.

'The warehouse is pretty much full to capacity and none of [it] is selling.'

Another posted: 'Isn't that the weirdest thing? So much stuff, but none of it is what people want.'

Problems for Big Lots come amidst a widespread 'retail apocalypse' which is seeing stores struggle with consumer pullback and increasingly tight margins.

There have been almost 2,600 store closures so far in 2024. 

In recent months, Walmart has closed three more of its underperforming locations, while Rite Aid said it is shutting another 27 pharmacies. 

Dollar stores have been hit hard too, with 99 Cents Only announcing in April it would shutter all 371 of its locations across California, Texas, Arizona and Nevada. 

Similarly, 1,000 Family Dollars and Dollar Trees will permanently shut over the next few years.