Money-losing discount retailer Big Lots is closing roughly 140 stores cross the country, more than triple the number it originally announced, in what one analyst said could be an attempt to cut losses by swiftly shutting some poorly performing locations.
The Columbus, Ohio-based company on its website has now identified 141 stores in 27 states that it said it will be shutting. Big Lots is most dramatically reducing its brick-and-mortar footprint — by a half — in California, where it plans to close 54 stores. It currently has 109 retail locations in the Golden State.
In Arizona, 13 Big Lots stores will go dark out of the retailer's 34-unit fleet in that state. A dozen stores in Washington, where Big Lots has 26 locations, are slated to close. And Florida, which now has 106 Big Lot stores, will see 11 of them shut.
The number of store closings far surpasses what Big Lots reported in a securities filing last month, where the retailer said it planned to shut 35 to 40 stores this year. Big Lots, a chain with nearly 1,400 stores, in that filing also warned that it was in danger of being forced to cease operations due to mounting losses and declining sales.
Big Lots didn't didn't respond to an email Tuesday from CoStar News seeking comment.
But Bill Read, an executive vice president with Retail Specialists, said he believes Big Lots is attempting to quickly stem the flow of red ink at the company.
"This list is a surprise in that they pre-announced 35-to-40 store closings and then decided to close over 135," Read said in an email to CoStar News. "The list represents stores losing money but also shows that they are electing to withdraw from some trade areas to save operating costs, which seems like a wise move. I think Big Lots must take aggressive action to help save the company and this seems like the beginning of a restructure plan."
In its June regulatory filing, Big Lots said it had 244 underperforming stores, which account for about 17% of its fleet. During the first quarter, Big Lots recorded asset impairment charges of $68.2 million related to those locations.
In addition to California, Arizona, Florida and Washington, Big Lots is closing stores in: Alabama, one; Colorado, four; Connecticut, three; Georgia, two; Illinois, three; Indiana, two; Kansas, one; Louisiana, two; Maryland, three; Massachusetts, one; Michigan, four; Minnesota, one; Missouri, three; Montana, one; New York, three; North Carolina, one; Oregon, two; Pennsylvania, two; South Carolina, three; South Dakota, one; Vermont, one; Virginia, two; and Wisconsin, five.
"I am tired of doing store-closing lists and the best thing that can happen is that everyone goes out and buys something at Big Lots and gives them some needed cash to help save thousands of jobs," Read said.