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

Big Lots exterior



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  • 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 found a confusing, disorganized store with no clear brand to draw in customers. 

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




Mary Meisenzahl/Insider


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.



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



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



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



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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.



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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.



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



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



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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.



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



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



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Many of the end caps advertising sales were totally emptied.



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



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



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



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



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



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



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There was a huge selection of soda, too.



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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.”



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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.



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



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



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



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



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



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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.



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Do you have a story to share about a retail or restaurant chain? Email this reporter at [email protected].

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



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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.



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This post was originally published on Business Insider

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