Discount home goods retailer Big Lots revealed it is planning to shutter more stores this year and may be facing permanent closure – the latest major chain to face financial ruin as inflation-battered shoppers pull back on spending.
The Ohio-based company – which has around 1,400 stores nationwide – disclosed dismal fiscal reports in a June SEC filing and said it plans to close between 35 to 40 stores this year, following the 52 stores closed in 2023.
The Big Lots report said “elevated inflation” has put a damper on customers’ “buying power” – resulting in big losses for the company and “substantial doubt” about its ability to continue operations.
Company net sales decreased $114.5 million, or 10.2%, in the first quarter compared to the first quarter of 2023, the report said.
The retailer has been steadily losing money and relying on dwindling cash since 2022, the report said, raising concerns of bankruptcy.
Big Lots did not respond to requests for comment.
The company’s stock has fallen 52% over the past month and has cratered 84% since this time last year.
Big Lots is not the first retailer to announce mass closures as brick-and-mortar stores struggle to stay afloat.
Walgreens recently announced it may close up to 2,000 stores amid plunging retail sales, while Red Lobster abruptly shut dozens of locations last month and filed for bankruptcy days later.
Drugstore rivals CVS and Rite Aid have also announced impending store closures this year, along with retailers Macy’s, Walmart and Foot Locker.
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