I visited a Big Lots store and saw why why the chain is struggling as customers flock to other discount stores

Mary MeisenzahlDec 31, 2022, 05:16 IST

Mary Meisenzahl/Insider

Big Lots sales in the most recent quarter were down nearly 10% over the year before.
I visited a Rochester, New York location to see why.

I visited a Big Lots store in Rochester, New York to see why the chain is suffering with sales down 10% year over year, even as consumers are eager for deals and low prices.

Mary Meisenzahl/Insider

I visited a Big Lots store in Rochester, New York to see why the chain is suffering with sales down 10% year over year, even as consumers are eager for deals and low prices.

The chain sells many different things, and the corporate website describes it as " amazing values that other stores just can't match" on "everyday consumables and housewares to toys and seasonal goods."

Mary Meisenzahl/Insider

The chain sells many different things, and the corporate website describes it as " amazing values that other stores just can't match" on "everyday consumables and housewares to toys and seasonal goods."

The location I visited had a few carts available, though I didn't see anyone actually using them.

Mary Meisenzahl/Insider

When I stepped inside, I didn't have any more clarity about what kind of store this was.

Mary Meisenzahl/Insider

There was a tailgating display near the entrance with some folding chairs and blankets.

Mary Meisenzahl/Insider

The setup of the store was confusing and didn't seem to follow any real reasoning.

Mary Meisenzahl/Insider

Messily arranged boxes of clothes lined shelves behind the tailgate setup.

Mary Meisenzahl/Insider

That same aisle also had some exercise equipment, which was on sale.

Mary Meisenzahl/Insider

There was half an aisle entirely dedicated to Baby Yoda merchandise, with blankets, stuffed toys, pillows, and other items.

Mary Meisenzahl/Insider

Big Lots had success selling mugs, toys, and towels from the Disney popup section, president and CEO Bruce Thorn said in a December earnings call.

Mary Meisenzahl/Insider

I was surprised at how much furniture was set up and for sale inside, from beds to large sectionals to kitchen tables.

Mary Meisenzahl/Insider

Furniture sales were down double digits in the most recent quarter because customers are delaying big purchases, Thorn said.

Mary Meisenzahl/Insider

The chain is lowering prices on furniture and adding more in-store discounts to move furniture, which I saw in sale signs posted throughout the store.

Mary Meisenzahl/Insider

Aside from a few beds and table sets, the furniture setup felt very haphazard and unorganized.

Mary Meisenzahl/Insider

Once I moved past the furniture, the store had more small, low-cost items for sale.

Mary Meisenzahl/Insider

Many of the end caps advertising sales were totally emptied.

Mary Meisenzahl/Insider

These displays are usually "unique, quirky, trendy and seasonal items" Big Lots says.

Mary Meisenzahl/Insider

The back side of the store felt like several different chains in one.

Mary Meisenzahl/Insider

Aisles of wall decor, faux plants, and candles reminded me of Home Goods or TJ Maxx.

Mary Meisenzahl/Insider

There was a surprisingly robust pet section, with toys, food, treats, and cat trees.

Mary Meisenzahl/Insider

The food section was similar to what you might find at a dollar store.

Mary Meisenzahl/Insider

It was limited to name brands with all kinds of pantry staples and baking supplies.

Mary Meisenzahl/Insider

There was a huge selection of soda, too.

Mary Meisenzahl/Insider

Walking through the store, it's hard to tell what Big Lots wants to portray itself as, and why shoppers should see it as a destination over other stores.

Mary Meisenzahl/Insider

Big Lots says it saw success in the fourth quarter with "Grinch branded apparel and accessory items, novelty family sleepwear, giant candy bars, ugly holiday sweaters, and leggings."

Mary Meisenzahl/Insider

Big Lots says it saw success in the fourth quarter with "Grinch branded apparel and accessory items, novelty family sleepwear, giant candy bars, ugly holiday sweaters, and leggings."

The store definitely reflected that confused, miscellaneous quality.

Mary Meisenzahl/Insider

Other sections of the store were just extremely disorganized, making it difficult to tell what specific items cost or if they were on clearance.

Mary Meisenzahl/Insider

St. Patrick's Day items were half stocked and sitting on a cart in the middle of the store.

Mary Meisenzahl/Insider

The clothing section was extremely full, to the point where it was almost impossible to look through and take items off the rack.

Mary Meisenzahl/Insider

Toys are a big sector for Big Lots, and it was easy to see why.

Mary Meisenzahl/Insider

The toy section was the easiest to navigate and find prices marked on items.

Mary Meisenzahl/Insider

There was also a section of $5 and under stocking stuffers near the register that I was tempted to buy from.

Mary Meisenzahl/Insider

Big Lots kind of reminded me of Five Below in its mix of interesting novelties and moderate disorganization.

Mary Meisenzahl/Insider

However, at Five Below it's easy to justify an inexpensive purchase. Big Lots has many more items priced at $10, $25, and higher.

Mary Meisenzahl/Insider

After visiting, I understand better why Big Lots isn't benefiting from more consumers looking for deals.

Mary Meisenzahl/Insider

The chain has a huge range of items at comparatively low prices, but it's not clear why people should shop there over other stores.

Mary Meisenzahl/Insider

It doesn't have an established brand as a destination for cheap home goods, toys, or anything in particular.

Mary Meisenzahl/Insider

It's a store for everything, but a destination for nothing.

Mary Meisenzahl/Insider

It's definitely entertaining to walk around and kill some time, but it wouldn't be my first choice for anything I needed to shop for.

Mary Meisenzahl/Insider

I compared the prices at Los Angeles's high-end grocery store Erewhon with 2 other popular markets

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I visited a Big Lots store and saw why why the chain is struggling as customers flock to other discount stores

I visited a Big Lots store in Rochester, New York to see why the chain is suffering with sales down 10% year over year, even as consumers are eager for deals and low prices.

The chain sells many different things, and the corporate website describes it as " amazing values that other stores just can't match" on "everyday consumables and housewares to toys and seasonal goods."

The location I visited had a few carts available, though I didn't see anyone actually using them.

When I stepped inside, I didn't have any more clarity about what kind of store this was.

There was a tailgating display near the entrance with some folding chairs and blankets.

The setup of the store was confusing and didn't seem to follow any real reasoning.

Messily arranged boxes of clothes lined shelves behind the tailgate setup.

That same aisle also had some exercise equipment, which was on sale.

There was half an aisle entirely dedicated to Baby Yoda merchandise, with blankets, stuffed toys, pillows, and other items.

Big Lots had success selling mugs, toys, and towels from the Disney popup section, president and CEO Bruce Thorn said in a December earnings call.

I was surprised at how much furniture was set up and for sale inside, from beds to large sectionals to kitchen tables.

Furniture sales were down double digits in the most recent quarter because customers are delaying big purchases, Thorn said.

The chain is lowering prices on furniture and adding more in-store discounts to move furniture, which I saw in sale signs posted throughout the store.

Aside from a few beds and table sets, the furniture setup felt very haphazard and unorganized.

Once I moved past the furniture, the store had more small, low-cost items for sale.

Many of the end caps advertising sales were totally emptied.

These displays are usually "unique, quirky, trendy and seasonal items" Big Lots says.

The back side of the store felt like several different chains in one.

Aisles of wall decor, faux plants, and candles reminded me of Home Goods or TJ Maxx.

There was a surprisingly robust pet section, with toys, food, treats, and cat trees.

The food section was similar to what you might find at a dollar store.

It was limited to name brands with all kinds of pantry staples and baking supplies.

There was a huge selection of soda, too.

Walking through the store, it's hard to tell what Big Lots wants to portray itself as, and why shoppers should see it as a destination over other stores.

Big Lots says it saw success in the fourth quarter with "Grinch branded apparel and accessory items, novelty family sleepwear, giant candy bars, ugly holiday sweaters, and leggings."

The store definitely reflected that confused, miscellaneous quality.

Other sections of the store were just extremely disorganized, making it difficult to tell what specific items cost or if they were on clearance.

St. Patrick's Day items were half stocked and sitting on a cart in the middle of the store.

The clothing section was extremely full, to the point where it was almost impossible to look through and take items off the rack.

Toys are a big sector for Big Lots, and it was easy to see why.

The toy section was the easiest to navigate and find prices marked on items.

There was also a section of $5 and under stocking stuffers near the register that I was tempted to buy from.

Big Lots kind of reminded me of Five Below in its mix of interesting novelties and moderate disorganization.

However, at Five Below it's easy to justify an inexpensive purchase. Big Lots has many more items priced at $10, $25, and higher.

After visiting, I understand better why Big Lots isn't benefiting from more consumers looking for deals.

The chain has a huge range of items at comparatively low prices, but it's not clear why people should shop there over other stores.

It doesn't have an established brand as a destination for cheap home goods, toys, or anything in particular.

It's a store for everything, but a destination for nothing.

It's definitely entertaining to walk around and kill some time, but it wouldn't be my first choice for anything I needed to shop for.