Skip to comments.Big Lots closing up to 170 stores
Posted on 10/07/2005 3:19:02 PM PDT by BurbankKarl
Big Lots Inc. is closing 126 underperforming stores and all 41 of its freestanding furniture outlets.
Big Lots (NYSE: BLI), which operates 14 stores in Western Washington, didn't say which ones would close, though many are expected to be in small or rural markets.
The closures are part of a restructuring process that will cost the Columbus, Ohio-based closeout retailer $60 million this year. The charges will cut Big Lots' 2005 profit by around 35 cents a share.
Because of the charges, Big Lots said can no longer make a guess at its 2005 profit. The company said last February it expected to earn between 54 cents and 60 cents a share in the current fiscal year, which ends in January.
The changes follow a disappointing 2004. Big Lots reported a profit of $25.7 million in 2004, or 22 cents a share; down from a profit of $81.2 million, or 69 cents a share, in 2003.
The restructuring program will look at Big Lots' fixed costs, which rose in recent years as the company undertook an extensive remodeling project. It will also examine merchandising, purchasing, and identify new markets in which to open stores.
Big Lots disclosed the charges along with its September sales figures. The company's same-store sales rose 2.9 percent in September and are up 1.5 percent in the first nine months of the year. Same-store sales measure receipts from stores open at least a year, and are considered a good measure of a retailer's condition.
Pretty meaningless until someone tells us how many stores they had before they started closing. I know they've closed stores here.
I'm not really surprised, the only times I've ever gone in there all they have is junk.
So now they'll be the "Not So Big Lots"?
1500 stores total
That was my impression. It was like a Chinese MFG warehouse closeout. All the junk that would barely stay in one piece while you carried it out the door.
They should have paid you to haul the stuff.
Good. Those places smell as bad as they look.
I used to really like going to Big Lots. They always had something interesting, and you could get a huge bag of really good popcorn for a buck.
But when they remodeled, it was like they hired Stevie Wonder to do the job. Nothing in the store made sense, and it was hard to find the stuff you used to be able to track down easily.
I think our store is staying open, but some in the northern part of West Virginia are shutting down.
> I'm not really surprised, the only times I've ever
> gone in there all they have is junk
Like eBay, BL sometimes has undervalued closeout items,
but it's a crapshoot.
I've been expecting this for some time. A couple of years
ago BL started carrying BigLots-branded items. This said
1. Their normal supply of real closeouts, overstocks,
remainders and liquidation merchandize was running low, and
2. Because the BL-branded stuff was overpriced junk,
they think their customers are idiots.
Return on Assets (ttm): 2.03%
Return on Equity (ttm): 2.43%
Revenue (ttm): 4.51B
Revenue Per Share (ttm): 39.976
Qtrly Revenue Growth (yoy): 5.60%
Gross Profit (ttm): 1.78B
EBITDA (ttm): 162.15M
Net Income Avl to Common (ttm): 25.84M
source:Big Lots financial info
Didn't they start out as Odd Lots and then the new ones became Big Lots and then they all changed. When I used to go to the store in Ohio, it was Odd Lots and then out here it was Big Lots and the bags even had both names on them--that's if my memory serves me correctly. My kids tell me that I'm old............They're right, but don't tell them.
Oh man, this is hilarious...
>>>But when they remodeled, it was like they hired Stevie Wonder to do the job. Nothing in the store made sense, and it was hard to find the stuff you used to be able to track down easily.
That's so you have to walk through the entire store looking for what you want and pick up other stuff while wandering. The grocery store I shop at reorganizes about every three years and I swear that's the only reason why.
A few years ago, I read an article about stores like Big Lots, which said that during times of economic hardship, those kinds of stores prosper because people are stingier with their money. So maybe the economy is not as bad as the Democrats/MSM are telling me?
Time to buy some shares
Walmart does the same thing.
The Big Lots here are pretty good- lots of inexpensive food items, linens are a good buy, and they are a bonanza at holiday times.
I have yet to go to a Big Lots and find something I am seeking.
Big Lots is closing because enough of their customers finally realized that if they wanted to buy junk they could do better at a Salvation Army Thrift Store.
Where I live, there are Dollar Stores popping up everywhere. They go by various names, 99 Cents, Dollar Tree, Dollar General, Family Dollar, etc.
> Big Lots is closing because enough of their customers
> finally realized that if they wanted to buy junk they
> could do better at a Salvation Army Thrift Store.
Well, sure, but not new-in-box junk.
The BigLots business plan relies on a steady flow of
liquidated, overstocked, closeout and otherwise
This has fundamental problems.
1. Its continued success requires lots of other
business to continue to screw up.
2. It assumes that these products won't find some
other way to reach market (many retailers closing
stores liquidate in place, for example).
* Impaired - I've seen clear evidence that many items
BL sells are there due to packaging or even branding
that needed changing that was uneconomical. I bought
a couple of cases of a fine breakfast cereal that had
an obvious trademark conflict with another company.
This sort of thing doesn't happen often enough to build
a business around.