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
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 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
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
Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.
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
