BIG Lots is shutting down four stores in a single state, leaving customers scrambling to find other options.
The discount retail chain cites inflation and a lack of consumer spending for closing dozens of underperforming stores nationwide.
BIG LOSS
Big Lots is closing four Michigan stores, primarily due to low sales.
The company, which operates over 1,390 stores nationwide, is headquartered in Columbus, Ohio.
Big Lots currently has 46 locations in Michigan, with four stores set to close before the end of the year.
The four store closures include:
- Kentwood, located at 4254 28th St. SE
- Okemos, located at 2020 Grand River Ave.
- Portage, located at 6207 S. Westnedge Ave.
- Ypsilanti, located at 2850 Washtenaw Ave.
The company announced its decision to close down stores in a filing to the US Securities and Exchange Commission in June.
“Due to ongoing negative macroeconomic factors and their uncertain impacts on the Company’s business, results of operations, and cash flows, the Company expects to experience further operating losses,” the company said in the filing, as reported by the Detroit Free Press.
Big Lots also stated that it “expects to experience difficulty remaining in compliance with such covenants.”
Big Lots cited “elevated inflation” as one of the main reasons it would be closing down stores, claiming that rising costs of products and increased labor costs “impacted the buying power” of its customer base.
The decision to shut the stores has left consumers speculating whether the company would be filing for bankruptcy in the near future.
Still, the company continues to operate over 1,000 locations across the US.
Only two states, Alaska and Hawaii, lack at least one Big Lots location.
BIG REACTION
Big Lots has amassed a significant customer base over the last few decades, and consumers are understandably upset at its decision to close even more stores.
Former customers from its Michigan stores took to social media to voice their concerns about the closures.
“I feel for the employee’s losing their job,” one Facebook user wrote.
“So sad. I get so many stocking stuffers there,” another user commented.
CLOSING BIG LOTS LOCATIONS REVEALED
The affected Big Lots locations span a wide geographic range, including:
- Alabama: Troy
- Arizona: Flagstaff, Glendale, Laveen, Mesa, East Mesa, Peoria, Phoenix (Ray Road, 75th Avenue, Bell Road, West Bethany Road, East Bell Road), Scottsdale, Tucson (North Oracle Road)
- Colorado: Aurora (South Parker Road), Grand Junction, Littleton, Longmont
- Connecticut: Manchester, Milford, Waterford
- Florida: Boca Raton, Bonita Springs, Clewiston, Coconut Creek, Destin, Hallandale, Hollywood, Miami Lakes, Orange Park, Orlando (Waterbridge Downs), Pompano Beach
- Georgia: Savannah, Thomson
- Illinois: Crest Hill, Lockport, Niles
- Indiana: North Indianapolis, Kokomo
- Kansas: Kansas City
- Louisiana: Lafayette, Natchitoches
- Maryland: Laurel, Lexington Park, Reisterstown
- Massachusetts: Dennis Port
- Michigan: Kentwood, Okemos, Portage, Ypsilanti
- Minnesota: Albert Lea
- Missouri: Kansas City (Washington Street), Saint Joseph, Saint Louis (Christy Boulevard)
- Montana: Helena
- New York: Carle Place, Centereach, Queensbury
- North Carolina: Durham (Avondale Drive)
- Oregon: Albany, Salem
- Pennsylvania: Clifton Heights, Exton
- South Carolina: Aiken, Chester, Newberry
- South Dakota: Rapid City
- Utah: Layton, Logan
- Vermont: Barre
- Virginia: Fredericksburg (Warrenton Road), Manassas
- Washington: Bellingham, Burien, Covington, Everett, Kent, Lacey, Lynnwood, Olympia, Port Angeles, Renton, Tacoma (72nd Street), Vancouver (SE 164th Avenue)
- Wisconsin: Fond du Lac, Menomonee Falls, Mount Pleasant, Sheboygan, West Bend
“Nooooo!!! I love Big Lots! Especially at the holidays!!” one user shared.
“Oh no! I love big lots,” another user wrote.
“Hopefully Big Lots can bounce back … And yes I do work at a Big Lots store.. been with them for 25+years,” one user added.
Some customers, however, seemed to think the closures were “deserved.”
“I’m indifferent about big lots. It’s an okay store, but I can take it or leave it,” one user commented.
“Doesn’t surprise me. Every time I pass by the one in my town the parking lot is either empty or there’s very few cars there,” one user wrote.
“They aren’t the store they were 5 years ago. I don’t go there any more,” one former shopper wrote.
“Close all of them,” one user jeered.
“Oh well,” another user commented.
Big Lots bankruptcy fears
Big Lots has warned that it may have to close up to 40 locations this year.
The discount retailer spoke out about its financial struggles in its recent regulatory filing.
“In 2024, we currently expect to open three stores and close 35 to 40 stores,” Big Lots bosses wrote.
But questions remain about its “current cash and liquidity projections,” according to the filing.
There is “substantial doubt about the company’s ability to continue as a going concern,” according to the court docs.
Big Lots operates more than 1,300 stores across 48 states and it’s based in Columbus, Ohio.
“The company has incurred net losses and used cash in operating activities in 2022, 2023, and the first quarter of 2024,” the chain wrote.
The retailer blamed its financial problems on “ongoing negative [economic] factors” amid declining sales.
But there was hope for a turnaround by slashing costs, and growing sales.
“The company intends to vigorously pursue its plans to enhance its liquidity [and] improve the performance of the business,” court docs said.
Big Lots hopes to save the firm by cashing in on some of its property, through the “outright sale, or sale and leaseback opportunities.”
BIG PARTY?
As Big Lots continues to close down one store after another, some consumers were notably shocked when the chain decided to throw a private concert event in Columbus.
Earlier this week, the chain and its charitable arm, the Big Lots Foundation, partnered with Bret Michaels’ Life Rocks Foundation to throw what appeared to be a massive party.
The event included a performance from the rock icon himself, who posted about the celebration before and after it occurred.
“It’s going to be a night of big energy, big songs, and a big party with a purpose,” Michaels wrote, in what appeared to be a promotional post for the event.
Michaels also shared a photo of the concert on his Instagram Stories, reposting a fan selfie.
He was seen smiling in front of hundreds of concertgoers.
Big Lots and Michaels were tagged in the post, with Michaels adding Poison’s hit single, Nothin’ But a Good Time, to his story.
“WHAT A FREAKIN BLAST!” Bret shared in the now-deleted post.
