Big Lots to Open 500 Additional Stores

Big Lots to Open 500 Additional Stores

Big Lots (NYSE: BIG), detailed a long-range growth and margin outlook highlighting value-creation opportunities throughout the coming years. The retailer revealed plans to open a minimum of 500 net stores, according to a press release.

The company will be opening 50 new locations in 2022 and is set to open another 80 per year after that. In an investor presentation, Big Lots will be opening stores in both existing markets as well as new areas. It currently has about 1,400 stores within 47 states.

The big-name retailer’s guidance outlines a sales goal of USD8 to USD10 Billion driven by the new store openings, merchandise sales productivity initiatives, as well as e-commerce growth. Moreover, the forecast stipulates an operating margin goal of 6% to 8% and a return on invested capital goal of 20% to 25%.

“We are highly confident that Operation North Star has put us on track to create tremendous long-term value for shareholders, and that we now have the visibility to provide a long-term financial outlook. We see a clear and long runway for growth ahead of us, coupled with the opportunity to drive returns through margin expansion and judicious capital allocation. We have all of the foundations in place to accomplish this, including a seasoned and ambitious team, new tools and technologies, and a proven pipeline of innovation. We will do all of this by accomplishing our mission to help our customer Live BIG and Save Lots!” stated Bruce Thorn, President, and CEO of Big Lots.

Amid the ongoing pandemic, similar to other retailers, Big Lots experienced growth as consumers looked to purchase deals and save money. The company benefited from its large variety of products in categories such as food, furniture and seasonal products.

During the fourth quarter of fiscal 2021, the company finished at the upper end of its expectations. On a quarter-to-date basis to the end of December, the company had a 9% two-year comparable sales increase.

“We are pleased with our holiday performance, with two-year comps for fiscal November and December running up 9%. Our outstanding team has worked tirelessly to offset headwinds from the global supply chain to ensure our customer would find what she wanted in our stores and online.” Thorn added.

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