Big Lots, a well-known discount furniture and home goods retailer, has recently made headlines with announcements of significant store closures across the United States. As consumers and industry watchers alike ponder the future of brick-and-mortar retail, the news that Big Lots is shuttering nearly 300 locations raises crucial questions about the factors leading to this downturn. Is Big Lots going out of business? What are the primary reasons behind these closures, and what does it signal for the broader retail landscape? This article delves into the financial woes of Big Lots, explores the underlying causes of its store closures, and provides a detailed list of locations slated to close, offering a comprehensive understanding of this significant retail development.
Big Lots’ Bankruptcy Filing and Wave of Store Closures
In September of last year, Big Lots officially filed for bankruptcy, marking the beginning of a challenging period for the discount chain. This initial filing revealed a substantial debt of $3.1 billion owed to a vast network of creditors, numbering between 5,000 and 10,000. Compounding these financial pressures, the company reported a significant sales decline, with figures dropping by as much as $114.5 million between 2023 and 2024.
Faced with mounting financial strain, Big Lots initially announced the closure of 545 underperforming stores by January of this year. CEO Bruce Thorn stated at the time, “Though the majority of our store locations are profitable, we intend to move forward with a more focused footprint to ensure that we operate efficiently and are best positioned to serve our customers.” While these closures represented a significant reduction in their physical presence, the situation worsened when Nexus Capital Management LP withdrew from a deal to acquire the company, necessitating further action.
Currently, Big Lots has entered into an agreement with Gordon Brothers Retail Partners LLC, signaling another wave of approximately 300 store closures expected this year. However, amidst these closures, there is a glimmer of hope. A new agreement allows Variety Wholesalers to potentially acquire between 200 and 400 Big Lots locations, preventing the complete shutdown of all remaining 963 stores. This complex series of events underscores the precarious financial situation Big Lots faces and the ongoing efforts to restructure and maintain a viable business.
Big Lots Storefront Sign in Hercules, California, Highlighting Nationwide Closures in 2024 – Illustrating Financial Difficulties and Retail Industry Trends
Unpacking the Reasons Behind Big Lots Store Closures
Several converging factors have contributed to the financial difficulties and subsequent store closures at Big Lots. These issues are not unique to this retailer but reflect broader challenges within the retail industry, particularly for brick-and-mortar stores in the current economic climate.
1. Declining Sales and Shifting Consumer Habits: A primary driver of Big Lots’ troubles is a decline in sales. As financial literacy instructor Alex Beene from the University of Tennessee at Martin explains, “The closures of many Big Lots stores nationwide are primarily due to declining sales, more competition from other national retailers both in-person and online, and ongoing supply chain issues that have taken a bite out of their profits.” This sales decline is partly attributed to changing consumer habits, with a significant shift towards online shopping, a trend accelerated by the coronavirus pandemic. Many consumers now prefer the convenience of e-commerce, impacting foot traffic to physical stores like Big Lots.
2. Increased Competition: The retail landscape is intensely competitive. Big Lots faces pressure not only from online giants like Amazon but also from other discount retailers and big-box stores. This heightened competition squeezes profit margins and makes it harder for individual chains to maintain market share, especially when facing economic headwinds.
3. Supply Chain Issues: Ongoing supply chain disruptions have also played a role. These issues can lead to higher costs of goods, inventory shortages, and ultimately, reduced profitability. For discount retailers like Big Lots, who operate on thin margins, supply chain inefficiencies can significantly impact their financial health.
4. Inflation and Economic Pressures: The current inflationary environment and broader economic pressures are significantly impacting consumer spending. Finance expert Kevin Thompson, CEO of 9i Capital Group, notes, “Declining sales and an inability to adjust to shifting consumer spending habits played a key role. The company’s discount model relies on strong volume, but inflation made it harder for its customers to keep spending.” As essential costs like food, rent, and healthcare rise, consumers, particularly those in lower-income brackets who are Big Lots’ core customer base, have less disposable income for discretionary spending on items sold at discount stores.
5. Product Mix and Changing Demand: R.J. Hottovy, Head of Analytical Research at Placer.ai, points to the product mix of Big Lots as another contributing factor. “Big Lots’ challenges stem from a combination of consumer behavior shifts, economic pressures, and increased competition. The retailer’s product mix leans heavily toward furniture and home décor—categories that surged in demand during the early pandemic but have softened in recent years.” The surge in demand for home-related goods during the pandemic lockdowns has subsided, leading to decreased demand in categories where Big Lots traditionally performs well.
What’s Next for Big Lots and Its Customers?
For regular Big Lots shoppers, the immediate impact will be the closure of many local stores throughout 2025. While the exact number of final closures remains uncertain, it is clear that the retail chain will have a significantly reduced footprint. However, the agreement with Gordon Brothers and Variety Wholesalers offers a potential path forward for the brand.
Experts suggest that Big Lots will likely need to pivot its strategy to ensure the viability of its remaining locations. Alex Beene suggests, “For their customers, the unfortunate reality is they can expect fewer locations, but the company is looking to pivot to change strategy and make better use of its remaining locations.” This pivot could involve focusing on more profitable store formats, optimizing inventory management, and potentially enhancing their online presence to better compete in the evolving retail landscape.
Kevin Thompson indicates that innovative financial strategies might be necessary for Big Lots to stabilize. “Lease-backed financing and subleasing unused storefronts to other retailers may become a key part of Big Lots’ financing. These steps could help stabilize operations, but whether Big Lots can successfully turn around remains to be seen.” Exploring options like lease-backed financing and subleasing could provide crucial capital and reduce operational costs, offering a lifeline for the company as it navigates these turbulent times.
List of Big Lots Store Closures
Gordon Brothers has released a list of Big Lots locations slated for closure this year. This list provides a detailed breakdown by state:
Alabama:
- 1327 S Brundidge St., Troy
Arizona:
- 1416 E Route 66, Flagstaff
- 17510 N 75th Ave, Glendale
- 3630 W. Baseline Rd., Laveen
- 2840 E Main St., Ste 109, Mesa
- 6839 E Main St., Mesa
- 24760 N Lake Pleasant Pkwy, Peoria
- 2020 N 75th Ave, Ste 40, Phoenix
- 230 E. Bell Rd., Phoenix
- 4727 East Bell Rd., Phoenix
- 2330 W Bethany Home Rd., Phoenix
- 4835 E Ray Rd., Phoenix
- 1260 Gail Gardner Way, Prescott
- 10220 N 90th St., Scottsdale
- 940 E Baseline Rd., Tempe
- 7025 E Tanque Verde Rd., Tucson
- 4525 N Oracle Rd., Tucson
- 3900 W Ina Rd., Tucson
- 2520 S Harrison Rd., Tucson
Arkansas:
- 2999 N College Ave, Fayetteville
California:
- 1670 W Katella Ave., Anaheim
- 6336 E Santa Ana Canyon Rd., Anaheim
- 2240 El Camino Real, Atascadero
- 1085 Bellevue Rd., Atwater
- 1211 Olive Dr., Bakersfield
- 2621 Fashion Pl., Bakersfield
- 1482 E 2nd St., Beaumont
- 353 Carmen Dr., Camarillo
- 19331 Soledad Canyon Rd., Canyon Country
- 1611 E Hatch Rd., Ste A Ceres
- 1927 E 20th St., Chico
- 12550 Central Ave., Chino
- 2060 Monument Blvd, Concord
- 740 N Main St., Corona
- 5587 Sepulveda Blvd., Culver City
- 912 County Line Rd., Delano
- 1085 E Main St., El Cajon
- 8539 Elk Grove Blvd., Elk Grove
- 1500 Oliver Rd., Fairfield
- 9500 Greenback Ln., Ste 22, Folsom
- 17575 Foothill Blvd., Fontana
- 1986 Freedom Blvd., Freedom
- 3520 W. Shaw Ave, Fresno
- 4895 E Kings Canyon Rd., Fresno
- 7370 N Blackstone Ave., Fresno
- 2900 W Rosecrans Ave., Gardena
- 360 E 10th St., Gilroy
- 1551 Sycamore Ave., Hercules
- 42225 Jackson St., Ste B, Indio
- 3003 W Manchester Blvd., Inglewood
- 1020 W Imperial Hwy, La Habra
- 6145 Lake Murray Blvd., La Mesa
- 4484 Las Positas Road, Livermore
- 380 S Cherokee Ln., Lodi
- 1009 N H St, Ste M, Lompoc
- 2238 N Bellflower Blvd., Long Beach
- 951 W Pacheco Blvd., Los Banos
- 1321 West Yosemite Ave., Manteca
- 665 Fairfield Dr., Merced
- 111 Ranch Dr., Milpitas
- 27142 La Paz Rd., Mission Viejo
- 3900 Sisk Road, Modesto
- 3615 Elkhorn Blvd., North Highlands
- 1702 Oceanside Blvd., Oceanside
- 4430 Ontario Mills Pkwy, Ontario
- 1875 Oro Dam Blvd E., Oroville
- 6646 Clark Rd., Paradise
- 47 Fair Ln., Placerville
- 30501 Avenida De Las Flores, Rancho Santa Margarita
- 810 Tri City Ctr., Redlands
- 2620 Canyon Springs Parkway, Riverside
- 565 Rohnert Park Expressway, Rohnert Park
- 6630 Valley Hi Dr., Sacramento
- 8700 La Riviera Dr., Sacramento
- 370 Northridge Mall, Salinas
- 499 W Orange Show Rd., San Bernardino
- 3735 El Camino Real, Santa Clara
- 1417 S Broadway, Santa Maria
- 568 W Main St., Ste B, Santa Paula
- 2055 Mendocino Ave, Santa Rosa
- 1189 Simi Town Center Way, Simi Valley
- 633 Sweetwater Rd., Spring Valley
- 2720 Country Club Blvd, Stockton
- 27411 Ynez Rd., Temecula
- 955 Sepulveda Blvd, Torrance
- 2681 N Tracy Blvd, Tracy
- 1840 Countryside Dr., Turlock
- 225 Orchard Plz, Ukiah
- 818 Alamo Dr., Vacaville
- 14790 La Paz Dr., Victorville
- 2525 S Mooney Blvd., Visalia
- 13241 Whittier Blvd., Whittier
- 52 W Court St., Woodland
- 1320 Franklin Road, Yuba City
- 56865 29 Palms Hwy, Yucca Valley
Colorado:
- 6626 South Parker Road, Aurora
- 1990 S Academy Blvd, Colorado Springs
- 2975 New Center Point, Colorado Springs
- 5085 N Academy Blvd, Colorado Springs
- 2401 N Ave, Ste 19b, Grand Junction
- 2628 11th Ave, Greeley
- 8100 W Crestline Ave., Unit B5, Littleton
- 2151 Main St., Longmont
Connecticut:
- 1470 Pleasant Valley Road, Manchester
- 56 Turnpike Square., Milford
- 3105 Berlin Tpke., Newington
- 42 Town St., Ste 1200, Norwich
- 1931 E Main St., Torrington
- 650 Wolcott St., Waterbury
- 40 Boston Post Rd., Waterford
- 560 Windsor Ave., Windsor
Florida:
- 21697 State Rd., 7, Boca Raton
- 25191 Chamber Of Commerce Dr., Bonita Springs
- 901 N Congress Ave., Boynton Beach
- 7381 52nd Pl E, Bradenton
- 328 E Sugarland Hwy, Clewiston
- 4847 Coconut Creek Pkwy, Coconut Creek
- 2400 W International Speedway, Daytona Beach
- 34940 Emerald Coast Pkwy, Destin
- 15271 Mcgregor Blvd., Fort Myers
- 1761 E Hallandale Beach Blvd., Hallandale
- 3921 Oakwood Blvd., Hollywood
- 8265 W Flagler St., Miami
- 5580 Nw 167th St., Miami Lakes
- 2882 Tamiami Trl E, Naples
- 700 Blanding Blvd, Ste 1, Orange Park
- 11230 S Orange Blossom Trl, Orlando
- 11672 E Colonial Dr., Orlando
- 1801 S Semoran Blvd., Orlando
- 7067 W Broward Blvd., Ste B, Plantation
- 1440 Ne 23rd St., Pompano Beach
- 11854 Us Highway 19, Port Richey
- 511 N State Rd. 7, Royal Palm Beach
- 3750 Bee Ridge Rd., Sarasota
- 2236 Se Federal Hwy, Stuart
- 12601 Citrus Plaza Dr., Tampa
- 41306 Us Hwy 19 N, Tarpon Springs
Georgia:
- 2738 Candler Rd., Decatur
- 375 Pavilion Pkwy, Fayetteville
- 610 Holcomb Bridge Rd., Ste 300, Roswell
- 13051 Abercorn St., Savannah
- 31 Hwy 138 W, Ste 150, Stockbridge
- 5370 Stone Mountain Hwy, Ste 300, Stone Mountain
- 687 Main St., Thomson
- 263 S Liberty St., Waynesboro
Illinois:
- 8148 S Cicero Ave., Burbank
- 1699 River Oaks Dr., Calumet City
- 1139 W Broadway, Centralia
- 1608 N Larkin Ave., Crest Hill
- 204 S. Randall Rd., Elgin
- 10850 Lincoln Trl, Fairview Heights
- 340 Summit Dr., Lockport
- 7233 W Dempster St., Niles
- 17w714 W 22nd St., Oakbrook Terrace
Indiana:
- 138 W Hively Ave., Elkhart
- 3958 Illinois Rd., Fort Wayne
- 8401 Michigan Rd., Indianapolis
- 2136 E Markland Ave., Kokomo
- 2806 Frontage Rd., Warsaw
Kansas:
- 7533 State Ave., Kansas City
- 2450 South 9th St., Salina
Kentucky:
- 1321 2nd St., Henderson
- 1980 Pavilion Way, Lexington
- 4025 Poplar Level Rd., Unit 102, Louisville
Louisiana:
- 3161 E Texas St., Bossier City
- 2354 S Range Ave., Denham Springs
- 3557 Ambassador Caffery Pkwy, Lafayette
- 339 South Dr., Ste D, Natchitoches
Maine:
- 1100 Brighton Ave., Portland
Maryland:
- 4420 Mitchelville Rd., Bowie
- 6623 Governor Ritchie Hwy, Glen Burnie
- 3331 Corridor Marketplace, Laurel
- 21800 N Shangri La Dr., Unit 20, Lexington Park
- 11989 Reisterstown Rd #a, Ste A, Reisterstown
Massachusetts:
- 41 Pond St., Ashland
- 400 Main St., Dennis Port
- 178 N King St., Northampton
- 179 Highland Ave., Seekonk
- 1150a Union Street Ext., West Springfield
Michigan:
- 750 Perry Ave., Big Rapids
- 373 N Willowbrook Rd., Coldwater
- 2353 N Park Dr., Holland
- 3669 E. Grand River Ave., Howell
- 4254 28th St. Se, Kentwood
- 5625 W Saginaw Hwy, Unit 1, Lansing
- 32399 John R Rd., Madison Heights
- 2020 Grand River Ave., Okemos
- 1401 Spring St., Petoskey
- 6207 S Westnedge Ave., Portage
- 2850 Washtenaw Ave., Ypsilanti
Minnesota:
- 2614 Bridge Ave., Albert Lea
Missouri:
- 4201 S Noland Rd., Independence
- 3225 Missouri Blvd., Jefferson City
- 13637 Washington St., Kansas City
- 1417 N Belt Hwy, Saint Joseph
- 4433 Lemay Ferry Rd., Saint Louis
- 4930 Christy Blvd., Ste 2, Saint Louis
Montana:
- 1200 10th Avenue South, Great Falls
- 2930 Prospect Ave., Helena
New Hampshire:
- 216 Washington St., Claremont
Nevada:
- 1601 W Craig Rd., N Las Vegas
New Jersey:
- 471 Green St., Woodbridge
New York:
- 2276 Delaware Ave., Buffalo
- 698 S Ogden St., Buffalo
- 4406 State Route 5 & 20, Ste 129, Canandaigua
- 260 Voice Rd., Carle Place
- 231 Centereach Mall, Centereach
- 2309 N Triphammer Rd., Ithaca
- 4645 Commercial Dr., New Hartford
- 316 Cornelia St., Plattsburgh
- 43 Burnett Blvd., Poughkeepsie
- 751 Upper Glen St., Ste 2, Queensbury
North Carolina:
- 8215 University City Blvd., Ste E, Charlotte
- 9535 S Blvd., Ste C, Charlotte
- 2000 Avondale Dr., Ste E, Durham
- 3420 Southwest Durham Dr., Durham
- 822 E Main St., Jefferson
- 1515 Garner Station Blvd., Raleigh
- 6540 Glenwood Ave., Raleigh
Ohio:
- 11372 Princeton Pike, Cincinnati
- 9690 Colerain Ave., Cincinnati
- 359 Miamisburg Centerville Rd., Dayton
- 1520 N Clinton St., Defiance
- 1170 Indiana Ave., Saint Marys
- 410 E Perkins Ave., Sandusky
- 4925 Jackman Rd., Ste 15, Toledo
- 7779 Tylersville Rd., West Chester
Oregon:
- 2000 14th Ave. Se, Albany
- 18565 Sw Tualatin Valley Hwy, Beaverton
- 1960 Echo Hollow Rd., Eugene
- 304 Ne Agness Ave., Grants Pass
- 2083 Ne Burnside Rd., Gresham
- 2121 Newmark St., North Bend
- 16074 Se Mcloughlin Blvd., Ste 8, Portland
- 2025 Lancaster Dr. Ne, Salem
Pennsylvania:
- 713 E Baltimore Ave., Clifton Heights
- 2820 Gracy Center Way, Coraopolis
- 201 West Lincoln Hwy, Exton
- 345 Scarlet Rd., Ste 22, Kennett Square
- 199 Franklin Mills Blvd., Philadelphia
- 2980 Whiteford Rd., York
South Carolina:
- 1016 Pine Log Rd., Aiken
- 1841 J A Cochran Byp., Ste A, Chester
- 1937 Wilson Rd., Newberry
South Dakota:
- 1617 Eglin St., Rapid City
Tennessee:
- 209 S Royal Oaks Blvd., Ste 206, Franklin
- 2301 Gallatin Pike N, Madison
- 1410 S 1st St., Union City
Utah:
- 702 E State Rd., American Fork
- 1030 North Main Street, Layton
- 1617 North Main Street, Logan
- 5516 South 900 East, Murray
Vermont:
- 1400 Us Route 302, Berlin
- 303 Us Route 4 E., Rutland
Virginia:
- 590 Branchlands Blvd., Charlottesville
- 736 Warrenton Rd, Unit 102, Fredericksburg
- 2110 Wards Rd., Lynchburg
- 7743 Sudley Rd., Manassas,
- 5900 E. Virginia Beach Blvd, Norfolk
- 8533 Midlothian Tpke., North Chesterfield
- 1650 General Booth Blvd, Ste 200, Virginia Beach
- 14603 Telegraph Rd., Woodbridge
Washington:
- 1650 Birchwood Ave., Bellingham
- 14907 4th Ave Sw., Burien
- 17307 Se 272nd St., Covington
- 6727 Evergreen Way, Everett
- 1301 W Meeker St., Kent
- 1515 Marvin Rd Ne., Lacey
- 5401 100th St Sw, Ste 102, Lakewood
- 5710 196th St Sw, Lynnwood
- 2815 Capital Mall Drive Sw, Olympia
- 1940 E. 1st St., Port Angeles
- 3399 Bethel Rd. Se, Port Orchard
- 120 31st Ave Se, Puyallup
- 14215 Se Petrovitsky Rd., Renton
- 1743 George Washington Way, Richland
- 9612 N Newport Highway, Spokane
- 1414 72nd St., Tacoma
- 2100b Se 164th Ave., Ste E, Vancouver
- 151 Easy Way, Wenatchee
Wisconsin:
- 616 W Johnson St., Fond Du Lac
- 3960 Mormon Coulee Rd., La Crosse
- N78w14511 Appleton Ave., Menomonee Falls
- 5415 Washington Ave., Mount Pleasant
- 699 S Green Bay Rd., Neenah
- 3426 Kohler Memorial Dr., Sheboygan
- 1690 S Main St., West Bend
Wyoming:
- 3501 E Lincolnway, Cheyenne
Businesses interested in taking over the leases for these locations were required to submit offers by January 24th.
States Experiencing the Most Big Lots Closures
The impact of Big Lots’ closures is not evenly distributed across the country. California is experiencing the most significant impact, with a staggering 75 stores slated to close. Florida follows with a substantial number of closures as well, with 26 locations shutting down. Arizona and Washington are also heavily affected, with 17 and 18 store closures respectively. While many other states will see fewer closures, the overall nationwide impact is considerable, reflecting the extensive restructuring underway at Big Lots.
Conclusion: Navigating a Challenging Retail Landscape
The closure of hundreds of Big Lots stores underscores the significant challenges facing brick-and-mortar retailers in today’s evolving economic and consumer landscape. A combination of declining sales, increased competition, shifting consumer preferences towards online shopping, supply chain disruptions, inflationary pressures, and product mix challenges have all converged to create a difficult environment for the discount retailer.
While the future of Big Lots remains uncertain, the agreements with Gordon Brothers and Variety Wholesalers offer a potential pathway for the brand to adapt and survive. The coming months will be critical as Big Lots navigates its restructuring, explores new strategies, and seeks to solidify its position in a highly competitive retail market. For consumers, the immediate impact is fewer store locations, but the long-term outcome will depend on Big Lots’ ability to successfully adapt and innovate in the face of ongoing industry transformation.
