OBSERVER archive photo: Pictured is the Big Lots store on Harrison Street.
Big Lots stores in Chautauqua County are still safe, but the retailer plans to close more stores than originally announced.
In June, Big Lots officials said in an SEC filing that they expected to close between 35 and 40 stores nationwide. But a review of the retailer’s website by Advance Newspapers, which includes Masslive.com and the Rochester Democrat and Chronicle, found that nearly 300 stores nationwide will be closed this year. That’s about 21% of Big Lots’ stores, including 75 in California alone. Ten closures are planned in New York state, including two in Buffalo.
Big Lots’ updated second-quarter financial reports are expected sometime later this month. First-quarter results reported in June showed a net loss of $205 million, or $6.99 per share, for the first quarter of 2024, which ended May 4. Net sales for the first quarter of fiscal 2024 were $1.009 billion, a 10.2% decrease from $1.124 billion for the same period in 2023. The year-over-year decline was due to a 9.9% comparable sales decline, according to company officials.
“Although we made significant progress in improving our business operations in the first quarter, we missed our revenue target primarily due to the continued decline and consumer spending by our core customers, particularly on high-cost consumer goods,” Big Lots CEO Bruce Thorn shared this with investor analysts during the company’s first-quarter earnings conference call. “The consumer environment weakened in the first quarter as both consumer confidence and willingness to pay have declined since January, partly due to concerns about inflation, unemployment and interest rates.”
According to the Conference Board, an economic research group, consumer confidence rose in July. The board reported in late July that its consumer confidence index rose to 100.3 in July from 97.8 in June. The index measures both Americans’ assessment of the current economic situation and their outlook for the next six months. The index for Americans’ short-term expectations regarding income, the economy and the labor market rose to 78.2 in July from 72.8 in June. A reading below 80 can indicate a possible recession in the near future.
Consumers’ assessment of the current situation fell to 133.6 in July (from 135.3 in June).
Rising food and grocery prices remain the primary driver of consumers’ sentiments about the U.S. economy. Although inflation has declined significantly since the Federal Reserve began raising interest rates in March 2022, price increases are still well above pre-pandemic levels.
“Although consumers are relatively positive about the labor market, they still seem to be concerned about high prices and interest rates and uncertainty about the future. These things may not improve until next year,” said Dana Peterson, chief economist at the Conference Board.
