Discount home goods retailer Big Lots said it plans to close more stores this year and may face permanent closures, becoming the latest major chain to face financial collapse as inflation-hit shoppers cut back on spending.
The Ohio-based company operates approximately 1,400 stores nationwide. June SEC filings The company said it plans to close 35 to 40 stores this year, after closing 52 stores in 2023.
Big Lots’ report said “rising inflation” had reduced customers’ “purchasing power”, resulting in significant losses for the company and raising “significant doubts” about its ability to continue operating.
The company’s first-quarter net sales were down $114.5 million, or 10.2%, compared to the first quarter of 2023, according to the report.
The retailer has reportedly posted steady losses since 2022 and is relying on dwindling cash, raising fears of bankruptcy.
Big Lots did not respond to a request for comment.
The company’s shares have fallen 52% in the past month and 82% since the same time last year.
Big Lots is not the first retailer to announce large-scale store closures as brick-and-mortar stores struggle to stay afloat.
Walgreens recently announced it could close up to 2,000 stores due to plummeting retail sales, while Red Lobster abruptly closed dozens of stores last month and filed for bankruptcy days later.
Drugstore rivals CVS and Rite Aid have also announced store closures this year, along with retailers Macy’s, Walmart and Foot Locker.
