Big Lots, a discount retail chain headquartered in Ohio, revealed in a report submitted to the Securities and Exchange Commission in June that it would be closing over 40 stores. As of now, it has been confirmed that 54 stores in California will be shut down due to “intensified inflation and reduced consumer spending.”
Currently, Big Lots has 1,392 stores across the United States, with Texas having the most at 116, followed by 109 in California and 106 in Florida. The closure schedule for the 54 stores in California has not been finalized. In 2023, the company closed 52 stores.
According to Fox News, a Big Lots located about 4 miles from the state university in Sacramento has already put up a “CLOSING” banner and is offering up to a 20% discount on clearance sales.
In its regulatory report in June, Big Lots expressed “grave doubts” about its ability to continue operating normally. Company officials stated that Big Lots is likely unable to meet the terms of its credit agreements, with current loan rates still high. The company reported first-quarter sales of $1 billion in 2024, a 10.2% decrease from the same period last year, resulting in a net loss of $205 million.
Bruce Thorn, the company’s CEO, stated in a June release, “While we made substantial progress in improving operational performance in the first quarter, we fell short of our sales goals. This was primarily due to the continued decrease in spending by core customers, particularly in high-ticket non-essential items.”
Thorn added, “We continue to address the current economic situation by focusing on controllable factors… taking proactive steps to drive positive sales growth in the second half of this year and in 2025, while maintaining an increase in gross margin year-over-year.”
The company also disclosed in its financial report, “The U.S. economy in 2024 is facing macro challenges, including intensified inflation negatively impacting customer purchasing power.”
Among the chain stores with a significant presence in California, Big Lots is the latest to apply for bankruptcy protection, facing the challenge of continuing operations like other struggling stores. In May 2024, Florida-based casual dining chain Red Lobster announced the closure of 48 stores across multiple states, including 5 in California. The company has faced financial challenges in recent years, with a loss of over $11 million in the third quarter of 2023. After securing over $100 million in financing in 2024, the company committed to filing for bankruptcy protection.
In June, Rite Aid announced the closure of another 27 stores, bringing the total number of closures to 74 this year. Since October of the previous year, the company has closed over 520 stores nationwide, accounting for a quarter of its total stores, with over 100 closures in California.
Currently, Rite Aid operates 1,592 stores in 16 states. CEO Jeffrey S. Stein stated last year, “We will close underperforming stores,” and “If your local store is affected, we will make every effort to ensure you receive medical services at other locations.”
In April this year, the “99 Cents Only Stores” discount chain, founded in Los Angeles, filed for bankruptcy protection, permanently closing 371 stores, including those in California. By the end of May, another discount retailer, Dollar Tree, announced that it would acquire the leases of 170 closed “99 Cents Only Stores” and begin operations in the fall.
Also in April, home goods company Bed Bath & Beyond filed for bankruptcy protection, closing 41 physical chain stores in California. There are approximately 360 stores in total across the United States.
In July, former retail giant Sears began liquidating its store in Stockton, California, a crucial player in the city’s development over the past 60 years. After the store closes in August, only 10 Sears stores will remain operational nationwide.