Big Lots has long been a store known for being a one-stop shop for affordable products, providing anything from groceries, clothing, and furniture to home decor. The brand has been an American staple for decades, but recent financial struggles meant that Big Lots had to file for bankruptcy in 2024 and closed many of its locations.
These closures left a gap in the market where consumers were looking for discount retail. Many believed that stores like Big Lots weren’t viable in the modern market, with consumer preferences changing to shopping online. Thankfully, Big Lots has come back from the brink, albeit with a catch.
Physical Stores Aren’t Going Anywhere
While it is true that a large chunk of the present consumer market prefers to shop online for the convenience, many people still like to be able to go to physical stores to be able to see and touch the products they are going to buy before taking them home.
This market isn’t going anywhere, and retail stores need to tap into what these customers prefer inside stores while innovating their online reach to keep as many consumers as possible.
Big Lots offers a satisfying retail experience, including bargains that can’t be found online. This business model encourages customers to always come back and check in on the store, increasing foot traffic.
Being Bought Out
It seems that even other businesses can see the irreplaceable nature that discount stores like Big Lots offer. Variety Wholesalers has bought out between 200 and 400 Big Lots locations and has already started reopening many stores. Unlike many other acquisitions, Variety Wholesalers plans to leave the Big Lots name intact and not rebrand any of them for now.
The reopen of continued operation of these stores will have impacts not only on the Big Lots name making a return, but on consumers and employees as well.
Boosting The Economy
With more Big Lots stores coming back, this provides an opportunity to boost local economies in different states. Local jobs will be created, and if Big Lots can maintain its status as an anchor store, then foot traffic could increase not only for its stores but for other nearby stores, strengthening physical retail overall.
132 Big Lots stores have been opened this month already, with 70 of them happening as part of the second wave of openings. President and CEO, Lisa Seiges, said, “We’re thrilled to bring the Big Lots! Brand back to life by offering more deals than ever, lots of famous brands, and a new apparel department for the entire family.”
New Ownership
Variety Wholesalers operates more than 400 stores under other brands in the Southwest and Mid-Atlantic, and the acquisition of many Big Lots locations is just one of their newest ventures. By acquiring the brand and reopening stores across the United States, Variety Wholesalers can bring in insight and expertise to help guarantee Big Lots’ future comeback.
By keeping the brand name intact and employing the same staff, Variety Wholesalers is keeping things familiar for consumers who have grown to be loyal to the “Big Lots Family.”
Helping Smaller Towns
Big Lots cemented itself as an essential store for many U.S. residents who needed affordable essentials, including groceries. By reopening stores and making a comeback, local people like delivery drivers, cashiers, and customers will be positively affected.
Communities where there isn’t a huge variety need stores like Big Lots to keep competitive prices low and provide consumers with the items that they need without breaking their budget. Small towns are especially vulnerable to businesses closing down and leaving them in retail “deserts” where residents need to travel far just to find any relevant stores that provide what they need in order to survive.
Able To Adapt Quickly
While it is true that online shopping is undercutting many physical retail stores, Big Lots should be able to keep its customer base in a shrinking market. In times where trends evolve rapidly, retail stores have to stay on their toes and change what they sell quickly in order to meet consumer demand.
While big online shops can’t change supply quickly, Big Lots can use this to its advantage and sell goods based on customer feedback. Big Lots also offers a satisfying shopping experience and browsing that online stores cannot compete with. As the age moves into digital trends, Big Lots and other retail stores will have to fight back to keep their customers coming to their stores.
Growing When The Economy Declines
While many more luxury stores tend to struggle a lot when the economy declines, discount stores like Big Lots are quite resilient to these changes and, in fact, can sometimes use them to their advantage.
When items start to become more expensive due to inflation or other factors, people look to discount stores in order to get the same goods at better prices. This means that in-store traffic for Big Lots could increase in times of economic uncertainty.
Reaching Different Customers
Over 70 stores were opened on May 15 and are distributed across 13 different states, both in big cities and in smaller towns, to maximize community reach, especially where there are gaps in the market where consumers need discount stores.
These states are Alabama, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. This wide distribution also helps the company not put all of its eggs in one basket, so if a certain region faces a decline in profit margins, there are other locations to pick up the slack.
Surviving And Thriving
The revival and continued survival of Big Lots showcase that big companies in the retail sector can still thrive off a largely physical model.
Consumers should expect more Big Lots stores to open in the future, thanks to Variety Wholesalers, which creates a competitive market among other discount stores to keep prices low for everyone and give customers the best variety when deciding where they shop.
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