Big Lots was ‘too expensive’ —says discounter’s new owner

Big Lots’ New Owner Reveals Reasons Behind Previous Bankruptcy

The previous year saw Big Lots facing bankruptcy due to a shift in strategy that led to alienating budget-conscious customers with high prices and unwanted merchandise, according to the discount retailer’s new owner.

After 57 years in business, Big Lots filed for bankruptcy protection in September, closing down all 1,392 stores, citing “high inflation” and the changing spending habits of its core customers as reasons for the closure.

Lisa Seigies, the CEO of Variety Wholesalers, which acquired Big Lots out of bankruptcy in January, highlighted that the former Big Lots became too expensive and the product assortment was no longer suitable for everyday needs.

Variety Wholesalers, a seasoned player in the bargain business with 400 stores under its umbrella, acquired Big Lots’ intellectual property and 219 stores, setting in motion a plan to revamp the struggling retailer.

One of the key issues identified by Seigies was Big Lots’ pricing strategy that resembled a department store rather than a close-out sale retailer, leading to a disconnect with its target audience.

To rectify past mistakes, Variety Wholesalers has reopened approximately 60 stores in southeast states with a new focus on apparel from popular brands at everyday low prices, creating a treasure hunt shopping experience for customers.

While the stores are currently only 70% stocked, Variety Wholesalers plans to hold Grand Opening promotions in the fall, featuring seasonal goods like Halloween and Christmas items.

Despite challenges such as limited garden and summer supplies due to orders being placed a year ago, Variety Wholesalers remains optimistic about the future of Big Lots under its ownership.

Seigies emphasized that the new merchandise is priced competitively, with no immediate plans to reflect the impact of tariffs on prices, providing customers with value and variety in their shopping experience.