Last year, Big Lots faced declining sales as rising prices drove away budget-conscious shoppers and made it hard to sell unwanted items, according to a new owner of the company.
The once-thriving closeout chain filed for bankruptcy in September, closing all 1,392 locations overnight and citing “high inflation” and its core customers’ inability to spend on non-essential items.
“Before, Big Lots seemed pricey, and the product selection wasn’t really regular,” remarked Lisa Sajees, CEO of Variety Wholesaler, the discount retailer that acquired Big Lots out of bankruptcy in January and has since reopened some of the closed stores.
Shopping at Big Lots had lost its charm; it was no longer that place where you stumbled upon things you didn’t know you wanted.
“We’re trying to offer those unexpected finds again,” Seigies told the Post.
Variety Wholesalers, based in Henderson, North Carolina, is not a newcomer to discount shopping. It operates 400 stores under the Rose Discount Shop and Maxway names.
The company purchased Big Lots’ intellectual property along with 219 stores and is implementing a plan to turn things around.
Seigies noted that previous management’s reliance on a “high and low” pricing strategy had shifted away from a typical closeout model, making it more like a department store.
Another significant mistake was allocating too much of the store’s space to furniture, which attracted fewer customers as the pandemic receded.
“People don’t need new furniture every day,” the executive pointed out. “That really hurt them.”
In response, Variety has revamped around 60 reopened stores in the Southeast over the past month. Customers can expect to find apparel from well-known brands like Joe Boxer and Wrangler as they enter the stores.
Prices on new items aim for “low daily” rates, so there’s no expectation of big sales coming tomorrow, which seems kind of unusual, doesn’t it? Seigies said.
While home furniture is still available, it’s been moved to a less prominent spot in the store.
Despite the rush to reopen, stock levels are only about 70% full.
Shoppers in search of garden or summer supplies may be disappointed, as many orders had to be placed a year in advance while other wholesalers positioned themselves competitively.
Seigies mentioned that a grand opening promotion is planned for the fall when seasonal items like Halloween and Christmas products will arrive in stores.
Variety wholesalers managed to stock up on most items before tariffs came into play, anticipating negotiations that would ultimately benefit them.
“The impact of tariffs hasn’t yet affected prices,” Seigies added.
