Photo by Harrison Keely on Unsplash
April 7, 2025
Will the Announced Revival of Big Lots Actually Work?
Following the announcement of an 11th-hour deal struck with discount retail specialist Variety Wholesalers, the fate of Big Lots appeared to be somewhat in flux as more concrete plans were given time to take shape.
Now, according to an April 4 press release issued by Variety Wholesalers, it seems that Big Lots is positioned for a potential revival — something that seemed unlikely as the discount retailer faced a slew of financial woes, entering into Chapter 11 bankruptcy in September of 2024.
Four waves of openings are planned by Variety Wholesalers in reviving the Big Lots brand, with nine recently acquired locations (in six states) slated to open as of April 10. Eventually, per the press release, there will be 219 Big Lots stores opening their doors over the course of the year, largely hinging around eastern markets.
The nine stores in question are located in: Mount Sterling, Kentucky; Metairie, Lousiana; Tupelo, Mississippi; Pearl, Mississippi; Asheboro, North Carolina; Clarksville, Tennessee; Gallatin, Tennessee; Dickson, Tennessee; and Roanoke, Virginia.
Variety Wholesalers currently owns Bargain Town, Maxway, Bill’s Dollar Stores, Roses Express, and Roses Discount Stores.
“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,” said Lisa Seigies, president and CEO of Variety Wholesalers.
“We’re opening stores quickly so we can serve the community. We know the stores won’t be perfect to start, but each week we’ll add more new products as we build towards the grand opening celebration in the fall. Every time a customer visits Big Lots! we want them to find something new and exciting!” Seigies added.
Big Lots To Open Approximate 55 Stores on May 1 and the Rest by June
Variety Wholesalers made clear an intention to open a further 55 Big Lots locations on May 1, with the remainder of the 219 expected stores to begin operations by early June. The Big Lots website, as well as its various social media channels, will be ramping up activity through the late spring and early summer months to keep shoppers apprised of details surrounding openings — and the retailer brand’s expected grand opening announcement.
A March 19 Facebook announcement teasing further details drew a great deal of social media interest, as the company wrote:
“BIG NEWS! Your new BIG LOTS! is coming soon! New ownership, fresh products & unbeatable closeouts at prices so low, you’ll want to shout! Want a sneak peek? Stay tuned for updates!”
That post was liked by more than 28,000 users and shared nearly 10,000 times. In the comments, Facebook users expressed a variety of opinions, with more than a few suggesting that Big Lots should return to being a closeout store and a discount grocer rather than trying to compete with the likes of Walmart.
Discussion Questions
Will the Big Lots revival helmed by Variety Wholesalers actually work? Why or why not?
What mistakes common to the previous Big Lots operating strategy need to be changed in order to create a success story for this new iteration? What fundamentals of the old standards and practices need to be kept intact?
What lessons drawn from Variety Wholesalers’ other brands can be applied to Big Lots as it seeks to recapture a new consumer?
Poll
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Brian Numainville
Principal, The Feedback Group
Cathy Hotka
Principal, Cathy Hotka & Associates
John Hennessy
Retail and Brand Technology Tailor
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Big Lots did not fail because the concept was bad. Indeed, most discount retailers are doing pretty well right now. Big Lots failed because it executed poorly – a jumbled assortment with insufficient ‘treasure’ for consumers to find, price points that were not all that competitive (fatal when you’re a retailer focused on price), and stores that became dirty and very hard to shop. Reopening the stores without remedying these issues is a journey to failure.
Brings to mind the old Cunard (?) motto “getting there is half the fun”… only in this case “getting there” will be all the misery.
If tariffs are are bad as it looks like they’ll be, Americans will be hunting high and low for discounts. What a great time to re-launch Big Lots!
Except Big Lots likely sells exactly the kind of things hit by high tariffs (to the extent that one can even identify such a concept, when everyone from Lesotho to St. Pierre et Michelon is on the ‘hit list’). And they’ll be less experienced at dealing with in that their competitors. But what a great time for those electronic dynamic pricing devices!!
C****t almighty! Isn’t there some kind of , if not legal, at least moral impertative not to mutilate the departed? Big Lots went toes up because it was – and is – something that didn’t work. It’s not like Hudson’s Bay Company, a three-and-a-half century old retailer that deserves life because of its heritage – Hell it aint even Toys-R-Us !….it’s just another failed retailer. Let the dead bury the dead.
The partnership with Variety Wholesalers brings exciting opportunities and potential synergies, but the success of Big Lots’ revival will depend on staying ahead of changing consumer preferences and market conditions.
By leveraging Variety Wholesalers’ expertise in discount retailing and optimizing their supply chain, Big Lots has a solid chance of thriving. However, the competitive landscape and economic factors will also be key players in determining the outcome.
A critical area to address is the outdated product assortment, which no longer resonates with today’s consumers who prioritize sustainable and eco-friendly options.
To create a success story, Big Lots should shift its focus to offering a more diverse range of ethically sourced products that align with current trends. At the same time, maintaining their competitive pricing strategy can help retain loyal customers while attracting new shoppers.
Updating the product assortment to focus on sustainable and eco-friendly goods may come with challenges. Sourcing these products can be complex and may require building new supplier relationships, which can be time-consuming and costly. Additionally, there’s the risk of increased production costs, which could impact pricing strategies and profit margins.
The recent acquisition of Big Lots by Variety Wholesalers presents both opportunities and challenges. While the plan to reopen over 200 stores demonstrates a commitment to revitalizing the brand, success will depend on effectively addressing previous issues such as declining sales and competition from other retailers. By focusing on strategic improvements and understanding consumer needs, there is potential for Big Lots to reestablish its position in the discount retail market. Time will tell….
What has history told us about the ability of retailers to “revive”?
This seems to answer the, “How do we expand?” question for Variety Wholesalers. As an successful operator, they stand a better chance than most of opening the right stores in the right locations and operating them profitably. I wouldn’t bet against them.
Big Lots’ revival depends on whether Variety Wholesalers can keep the treasure-hunt appeal while fixing past issues like inconsistent inventory and store experience. If they can do that, it stands a good chance.
The key question is what will these stores look like and how will they be merchandised? Will they be Variety stores with a Big Lots sign over the front door? The original Big Lots close-out positioning which had some degree of success but has been outdistanced by Home Goods and other off-pricers? Or the revised BL format which didn’t work and ultimately dragged the company into bankruptcy? Whatever’s inside these stores — and something tells me there’s no way there will be 200 of them — is there room in the marketplace for Big Lots circa 2025? I’m not sure at all.