Big Lots to Close Up to 40 Stores Amidst Financial Struggles
Ohio-based retailer Big Lots will close 35-40 store locations by the end of 2024.
The news follows reports of net losses and declining revenue for the company, which has burned up its cash reserves in recent years.
Big Lots, which operates 1,329 stores across the United States, has seen its revenue decline due to a drop in net sales. The company reported a net loss of $142 million in 2022 and $103 million in the first quarter of 2023. It also burned through $130 million in cash reserves in 2022.
The store closures are part of Big Lots' strategy to "optimize" its store portfolio and improve its financial performance. The company said it will continue to invest in its e-commerce business and its loyalty program.
The retail industry has been facing challenges in recent years due to the growth of online shopping and the rising costs of labor and materials. Several other retailers have announced store closures in recent months, including Bed Bath & Beyond, Pier 1 Imports, and Party City.
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