Big Lots has announced the closure of 500 stores—over a third of its locations—as it battles financial strain after filing for Chapter 11 bankruptcy. The discount retailer, known for its home goods, furniture, and groceries, has struggled to keep customers, with experts citing high prices compared to other discount giants like Walmart and Target. The latest batch of 208 store closures brings the total to 500, with locations offering steep discounts of up to 50% as they wind down.
The Columbus, Ohio-based chain is navigating the widespread “retail apocalypse,” a storm fueled by high inflation, online shopping preferences, and decreasing consumer spending on non-essentials. After reporting 16 consecutive quarters of declining sales, Big Lots hopes to restructure through cost-cutting measures, including its sale to private equity firm Nexus Capital. However, retail analyst Neil Saunders describes the bankruptcy as “inevitable” due to poor customer value undermining its appeal. With major players like 99 Cents Only, Rite Aid, and Family Dollar also closing stores nationwide, Big Lots’ struggle is part of a larger trend impacting discount and legacy retailers across the U.S.
