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The company seems to be blaming inflation, but I doubt that’s it.
True, Big Lots is a discounter and the low-end consumer is hurting
But I think the real story is that furniture retailers have been hit HARD (probably because of the housing market) and although Big Lots sells evything from chips to candles, a lot of its business is furniture related.
From NYPost:
Discount retailer Big Lots to shutter stores, may go bankrupt
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. . . .
Tuesday Morning is gone, Big Lots is struggling, but Ollie’s Bargain Outlets seems to be thriving. All three had the same basic business model, but Ollie’s seems to have done it the best.
I am not super familiar with either Big Lots or Ollies,
but for now I’m gonna go with “Ollies is an acutal discounter”
and “Big Lots is a furniture store, whether the CEO knows it or not.”
Furniture stores are in the 7th level of hell right now.
Chart below shows inflation-adjusted retail sales
vs inflation adjusted retail sales at furniture stores.
If you have an Ollie’s in your area, check it out. They do have good bargains on essential and not so essential everyday items, as well as varying stock of other consumer items.
I met the founder, Oliver Rosenberg, a couple of years before his death at an event in Harrisburg.
