Big Lots has just announced "an accelerated number of closures"
Society noted that the current economic environment had affected sales.
Big lots was a beloved reduction chain For decades, you could have been a faithful buyer since he was known by his former name, Odd Lots. A bit like the shopping experience in a Tuesday morning Or T.J. Maxx, you never know what you are going to find at Big Lots, which carries everything, from the decoration of the house to beauty supplies to electronics. But if you frequent your big local batches or if you like to travel when you want to shop, be informed that the retailer has announced "an accelerated number of closures". Read more to find out why Big Lots closes stores.
Read this then: Jo-Ann Fabrics closes the stores, from January 22 . AE0FCC31AE342FD3A1346EBB1F342FCB
Big Lots has actually opened stores.
In January, Big Lots sang a different song, announcing plans to open around 500 new stores in the coming years, according to a Presentation for investors . In 2022 alone, the company intended to open 50 new stores, with 80 opening or more per year.
Before this announcement, Big Lots had a "counting of flat stores" for a decade, said the company, noting that they introduced an "store intervention program" to reduce the number of closures. According to recent statements by leaders, however, the situation has changed and the number of closing stores resumes.
Economic conditions have harmed the profits.
During a winning of December 1 describe the results From the third quarter of 2022, Jonathan Ramsden , Executive vice-president, financial director and administrative manager of Big Lots, said that the retailer had "an accelerated number of closures".
According to Ramsden, closings are intended to increase income, because large lots will sell the properties of stores it has. Other sites are "underperforming", he said, which is why the company seeks to accelerate the closing process.
"This year's closures will eventually be a little higher than the openings," said Ramsden. "In the future, we hope and we would wait to return to a standardized level of closures, but we will certainly continue to examine closely the sub-perform stores."
In his opening declarations, Big Lots President and Chief Executive Officer Bruce Thorn said inflation had an impact on customer discretionary expenses, in particular on large tickets, which affects the performance of the retailer during this quarter. Ramsden confirmed that net sales were down 9.8% and that losses increased to $ 87 million, compared to only $ 4 million in the same quarter last year.
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The new openings slow down.
While store closings are now exceeding the openings, Ramsden noted that growth remains at the forefront of the initiatives of the big lots. The company is still on the right track to open 50 stores in 2022, with the number of "similar or slightly higher" closures. In 2023, this pace for the openings will slow down, with Ramsden indicating that there will be fewer than in 2022.
"We continue to develop stores, although a slower pace. We are planning a lower amount of stores at the time that we see in previous outings," said Ramsden when calling profits. "But it's just because of the economic time. We think we are better with that, we will come back to [IT] and we have a very good team to do it."
Thorn also explained that the store's strategy as a whole is focused on stores on "rural markets and small towns", where large lots have less competition, especially in reception categories and commercial costs lower.
"These generally generate more money and profitability than urban stores," he said. "While we are thinking of our real estate strategy in openings and closings in stores in the future, we see an opportunity to reshape our portfolio of stores more towards these rural and small towns by emphasizing furniture and Home products. "
A store is already ready to close.
According to CBS News Sacramento, a large group of lots in the Citrus heights The Sacramento district of California will close the store in January 2023.
A frequent buyer at the Citrus Heights store, Todd Chapman , said to the point of sale that the increase in theft and the population of the homeless in the store car park were the reason for the closure, according to a conversation with an employee.
"She said the flight is just out of control. People fill their caddies and leave the store," he told CBS News. "And they can't do anything about it."
The exit also spoke with Rachel Michelin , president of California Retailers Association, who said that theft like this was part of a trend. She added that there is a "gap" in the law which says that everything that is less than $ 950 in flight is only classified as an offense (as opposed to a crime).
Better life Has gripped your hand to Big Lots to comment on the Citrus Heights store and the imminent closures, but has not yet heard.
