Big Lots Plans to Close 315 Stores Amid Sales Drop

The famous discount retailer, Big Lots, has recently disclosed its decision to reduce the number of store locations considerably, planning to close as many as 315 stores in the USA. The retailer, which accounts for about 4% of its stores in this decision, was made due to the company’s attempt to strengthen its positions given the dramatic decrease in sales and accompanied consumer activities.

According to the recent reports made in Big Lots’s regular filing, the chain is about to close as many stores as it will have to according to its new loan deal signed in order to ensure the company’s sustainable functioning. Meanwhile, in June, the same firm revealed its intention of closing not more than 40 stores during the reported earnings. The report also notes the 10% drop in Big Lots’ sales and a quarterly loss of $2053 mil. voiced by Big Lots’ chief executive, Bruce Thorn, “the problem was connected with the lack of spending on items that can be defined as high-ticket discretionary things in the repetaion core consumer”.

In the past year, the company’s stock has decreased by almost 90%. The decision is considered to be another illustration of the ongoing disastrous long-term developments of prices in the national retail sector where the traditional retail fragrance chain loses its former positions forced out by online companies and altering demand on the part of the consumers.