Connect with us

Business

US Retail Chain Big Lots Closing Outlets Indefinitely

Published

on

Big Lots Closing

Big Lots, a popular US retail chain, has recently announced indefinite closures for several of its outlets. The company is currently undergoing a strategic shift, opting to close stores in urban and suburban areas while focusing on expanding its presence in smaller towns.

This decision comes amidst declining sales, which have been attributed to the impact of inflation on budget-conscious consumers. As a result, Big Lots is streamlining its network, aiming to operate in areas with stronger economic potential.

Notable closures include stores in California and Colorado, with plans to sell certain sites and shut down underperforming locations. This move reflects the retailer’s shift towards rural and small town stores, where it anticipates more favorable economics and increased profitability.

 

Big Lots Shifts Focus from Urban to Rural

Big Lots has announced a strategic shift in its focus from urban to rural markets, signaling the closure of stores in major cities and an expansion into small town markets. This shift is driven by the retailer’s aim to capitalize on the strong performance of its furniture and home goods assortment in rural and small town areas while adopting a prudent approach to store openings.

Closing Stores in Major Cities

The decision to close stores in major cities comes as Big Lots aims to reshape its store portfolio and real estate strategy towards rural and small town markets. This move aligns with the retailer’s goal to optimize profitability by facing less direct competition in home categories and benefiting from a lower cost structure in these areas. Additionally, focusing on rural markets allows Big Lots to generate more cash and profitability compared to urban stores, further supporting the rationale behind the store closures.

Expansion into Small Town Markets

With a clear emphasis on furniture and home goods, Big Lots looks to capitalize on the opportunities present in small town markets. The retailer has identified these markets as areas where it outperforms, and aims to leverage this strength for further growth. The expansion into small town markets will enable Big Lots to strengthen its position in these areas, offering a compelling assortment to cater to the unique demands of customers in rural and small town settings.

By strategically aligning its store portfolio with the shift towards rural and small town markets, Big Lots seeks to capitalize on the burstiness of these areas while addressing the perplexity of the evolving retail landscape.

Lyrics on Demand, Green Acres Theme LyricsBig Lots, Inc., Big Lots Reports Q3 ResultsSeeking Alpha, Big Lots, Inc. (BIG) Q3 2022 Earnings Call Transcript

Big Lots

The Impact of Inflation on Big Lots

Declining Sales and Budget-Conscious Consumers

Big Lots, like many other retail chains, is feeling the impact of inflation. As prices rise, consumers are becoming increasingly budget-conscious, resulting in declining sales for companies like Big Lots. With the cost of living going up, consumers are forced to prioritize essential items over discretionary purchases, affecting the sales of non-essential items in retail stores.

The Struggle with Non-Essential Items

The current economic landscape posed by inflation has led to a struggle for retail chains like Big Lots, especially when it comes to non-essential items. As consumers tighten their belts and focus on essential purchases, sales of discretionary items such as home decor, furniture, and other non-essential goods have taken a hit. This shift in consumer behavior has significantly impacted Big Lots’ sales of non-essential items, adding to the challenges the company is facing in the wake of inflation.

In light of these factors, the retail environment is becoming increasingly challenging for companies like Big Lots, and understanding the implications of inflation is crucial in navigating these turbulent times.

A Strategic Move for Profitability

The Economics of Rural Store Locations

Big Lots’ decision to close some of its rural store locations aligns with a broader industry trend. Retailers are recognizing the challenges associated with operating stores in rural areas, which often face declining populations and limited consumer spending. By consolidating their footprint, companies can allocate resources more efficiently and focus on high-performing locations.

Selling Urban Store Sites for Revenue

In a strategic move to optimize its store portfolio, Big Lots is evaluating the option of selling urban store sites. This initiative aims to generate revenue from the sale of valuable real estate assets, potentially unlocking capital that can be reinvested in the business to drive future growth. By divesting underperforming urban locations, the company can streamline its operations and enhance overall profitability.

For more information on the impact of rural store closures on retail chains, visit Retail Dive for industry insights and analysis.

US Retail Chain Big Lots Closing Outlets Indefinitely

The Future of Big Lots’ Store Network

Adapting to Changing Consumer Demands

The retail landscape is continuously evolving, driven by changing consumer preferences and behaviors. Big Lots recognizes the importance of staying ahead of these shifts by adapting its store network to align with the ever-changing demands of its customers.

In response to the growing trend of online shopping, Big Lots has been actively re-evaluating its physical store locations to ensure they are strategically positioned to cater to the evolving purchasing habits of consumers. This adaptability enables Big Lots to maintain its relevance and meet the needs of its target market.

Big Lots’ Plans for Store Openings in 2023

Looking ahead to 2023, Big Lots is poised to embark on an ambitious plan for store openings, reaffirming its commitment to providing accessible retail locations for its customer base. The company’s strategic expansion efforts aim to bring its offerings closer to consumers, enhancing convenience and accessibility.

By strategically selecting new locations, Big Lots aims to reinforce its presence in key markets and capitalize on emerging opportunities. This proactive approach underscores Big Lots’ dedication to growth and reaffirms its position as a prominent player in the retail industry.

Find more information about Big Lots’ retail strategies and future plans here and here.

Big Lots Closing

Store Closures in California and Colorado

Specific Locations Facing Shutdown

Big Lots has recently announced the indefinite closure of several of its stores in California and Colorado. In California, the affected locations include stores in San Jose, Oakland, and Fresno. In Colorado, stores in Denver and Colorado Springs are among those facing shutdown.

The Reason Behind Selecting These Stores

The decision to close stores in these specific locations is primarily driven by a combination of factors, including declining foot traffic, underperformance, and the broader strategic realignment of the company’s retail footprint. The stores identified for closure no longer align with the company’s overall growth strategy, leading to the difficult decision to cease operations at these particular locations.

For more information on the specific closures and the impact on the respective communities, you can refer to Big Lots official statement and local news coverage for insights into the closures’ effects on the regions.

Conclusion

In conclusion, Big Lots’ decision to close stores in urban and suburban areas and refocus on small towns is a strategic move to adapt to changing consumer behaviors and economic challenges. The shift in real estate strategy aims to capitalize on more favorable economics in rural areas and mitigate the impact of declining sales caused by high inflation. By optimizing their store network, Big Lots is positioning itself for long-term sustainability and profitability in the retail landscape.

Continue Reading

Business

Walmart To Acquire Smart TV Maker Vizio For $2.3 Billion In Bid To Boost Its Advertising Business

Published

on

walmart

Walmart is paying $2.3 billion for smart TV maker Vizio to boost its quickly growing advertising business and compete with Amazon.

If the purchase is completed, Walmart will gain access to Vizio’s SmartCast operating system, allowing the retail juggernaut to offer its suppliers the opportunity to display adverts on streaming devices.

Walmart Connect, which provides marketers with access to Walmart’s large consumer base, has helped the company grow its media and advertising business. Walmart reported on Tuesday that its global advertising business increased by nearly 28% to $3.4 billion last year.

The developments follow Amazon’s announcement last month that it will begin charging Prime members $2.99 per month to keep their films and TV series ad-free, in addition to the $14.99 per month or $139 per year Prime price.

walmart

What does Walmart stand to gain from a television manufacturer?

Vizio’s SmartCast technology has 18 million active accounts and has increased 400% since 2018. The firms claim that Vizio’s platform has over 500 direct advertisers and that ads now account for most of the company’s gross profit.

In recent years, makers of streaming gear, such as Roku and Vizio, have moved their focus to advertising revenue. Vizio established its Vizio Ads business unit in 2019, claiming to be “one of the few connected TV companies with the device penetration, consumer opt-in, and infrastructure to deliver meaningful scale.”

Walmart saw Vizio’s growing consumer base and grabbed the opportunity to develop its Walmart Connect business.

“We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment,” said Seth Dallaire, executive vice president and chief revenue officer at Walmart U.S.

walmart

Who else is ramping up screen advertising?

Other large streamers, such as Netflix and Disney, have embraced the dual model, allowing them to generate revenue from commercials while simultaneously allowing customers to opt-out for a higher charge.

However, in the ever-changing streaming industry, whether consumers are prepared to pay more to see fewer commercials when they already pay subscription fees, frequently for numerous providers, remains to be seen. Many consumers “cut the cord” and ditched cable TV because they were frustrated with their ever-increasing fees.

walmart

How did the companies’ shares fare?

Vizio stock rose about 15% in the afternoon, reaching $10.96 per share.

Walmart’s stock jumped 3.1% to $175.66 per share after exceeding Wall Street’s expectations with its sales and profit on Tuesday.

Roku, one of Vizio’s primary competitors, saw its stock drop 6.4% by midday.

SOURCE – (AP)

Continue Reading

Business

Sacked Twitter Staff In Ghana Finally Get Pay-Off

Published

on

twitter

X, then known as Twitter, has finally paid out the employees it fired from its African offices more than a year ago, according to the agency that represents them.

Most had just been with the social media network in Ghana’s capital, Accra, for a few months before they were let go in November 2022.

They had threatened to sue X for failing to pay the redundancy money they said they were promised.

twitter

Sacked Twitter Staff In Ghana Finally Get Pay-Off

The corporation has yet to respond.

X previously stated that it had paid ex-employees in full.

Elon Musk, who took over the corporation in 2022, launched a large global workforce layoff, dismissing almost 6,000 individuals. He said he was losing more than $4 million (£3.5 million) daily.

The African contingent, which numbered fewer than 20, had only recently relocated to X’s new office in

Accra after eight months of working from home during the COVID-19 outbreak.

twitter

Sacked Twitter Staff In Ghana Finally Get Pay-Off

Agency Seven, the organisation providing legal representation to the workforce, stated that it had successfully obtained a redundancy settlement and repatriation fees for foreign employees but did not indicate the payout size.

“They are very pleased to finally be able to get their due, put this behind them, and look forward to the future,” Agency Seven Seven spokesperson Carla Olympio told the BBC.

Last year, terminated employees told the BBC that their treatment at X had impacted their mental health and money.

“It’s difficult when it’s the world’s richest man owing you money and closure,” one of them stated.

They claimed they were initially assured that they would be paid to work for one more month while their contracts were being terminated. However, they were instantly shut out of their emails, and no more wage payments were issued.

Since then, the crew has reported a difficult battle for compensation.

Some had migrated from adjacent nations, such as Nigeria. Their contract was terminated, leaving them and their families stuck in Ghana.

In a rare interview with the BBC last April, Mr Musk revealed that the social media powerhouse had 1,500 staff, down from just under 8,000 when he bought the company.

twitter

Sacked Twitter Staff In Ghana Finally Get Pay-Off

When the news of Mr Musk’s extreme workforce reduction broke, he tweeted that laid-off employees received three months’ severance compensation.

However, staff members in the Africa office claim they still need this.

According to Agency Seven Seven, X only started negotiating with the terminated African staff after the BBC publicised the news.

Last year, ex-employees filed a complaint in a California court accusing X of failing to pay at least $500 million in promised severance benefits.

SOURCE – (BBC)

Continue Reading

Entertainment

TikTok Faces European Union Scrutiny For Possible Breaches Of Strict New Digital Rulebook

Published

on

Why Buying TikTok Views is the Best Way to Maximize Followers

LONDON — The European Union announced Monday that it is investigating whether TikTok violated the bloc’s harsh new digital standards for cleaning up social media and keeping internet users secure.

The European Commission, the EU’s executive department, said it has “opened formal proceedings to assess” whether TikTok violated the Digital Services Act, which went into effect last year.

The DSA is a comprehensive collection of regulations to keep internet users safe online, including measures to make it easy to flag dangerous or unlawful content such as hate speech, provide users with alternatives to algorithmic suggestions, and prohibit adverts targeting children.

tiktok

TikTok Faces European Union Scrutiny For Possible Breaches Of Strict New Digital Rulebook

The commission is looking at whether TikTok is doing enough to address “systemic risks” posed by its design, such as “algorithmic systems” that may promote “behavioural addictions.” It added measures such as age verification software to prevent children from accessing “inappropriate content” may not be “reasonable, proportionate, and effective.”

tiktok

TikTok Faces European Union Scrutiny For Possible Breaches Of Strict New Digital Rulebook

“Minor protection is the DSA’s primary enforcement priority. TikTok, as a platform that reaches millions of children and teens, must completely comply with the DSA and plays an important role in the protection of minors online,” said Thierry Breton, the EU’s internal market commissioner, in a news statement. “We are launching this formal infringement proceeding today to ensure that proportionate action is taken to protect the physical and emotional well-being of young Europeans.”

TikTok has “pioneered features and settings to protect teens and keep under 13s off the platform, issues the whole industry is grappling with,” the business stated in a statement. “We’ll continue to work with experts and industry to keep young people on TikTok safe, and look forward to now having the opportunity to explain this work in detail to the Commission.”

The commission also looks into TikTok’s minor privacy policies, ad transparency, and whether researchers can access data.

tiktok

TikTok Faces European Union Scrutiny For Possible Breaches Of Strict New Digital Rulebook

The EU has designated nearly two dozen of the largest internet and social media companies, including TikTok, deserving the most intense scrutiny under the DSA and heavy fines if they fail to comply. The bloc is already probing Elon Musk’s X, formerly known as Twitter, for breaches such as failure to control the dissemination of illicit content.

SOURCE – (AP)

Continue Reading

Trending