Part 4/9:
While the official statement from Big Lots primarily attributes its struggles to changed economic conditions and diminished discretionary spending, a deeper exploration reveals four critical factors that contributed to its decline.
1. The Closeout Strategy
Historically, Big Lots thrived on a closeout merchandising strategy, taking advantage of excess inventory from other retailers. This model was not only viable but also profitable, particularly when the store was able to secure products at discounted prices. However, the reliance on closeouts brings unpredictability that can alienate customers seeking consistency. This balancing act has been challenging, especially as the company shifted its focus back and forth between closeouts and more traditional inventory over recent years.