Big Lots to Close All Stores: 5 Shocking Lessons for Marketers and Retail Experts
- Big Lots is closing all 963 stores following Chapter 11 bankruptcy, marking a significant retail collapse.
- This article explores five critical lessons for marketers and retail experts, including the importance of adaptability, maintaining strong brand value, engaging customers beyond price points, ensuring financial transparency, and prioritizing corporate responsibility.
- Learn how this case highlights the challenges of staying competitive in a digital-first, evolving retail landscape.

The Backdrop:
- Bankruptcy and Failed Acquisition: Big Lots entered bankruptcy with hopes of restructuring and selling its business to Nexus Capital Management for $760 million. However, despite initial agreements, the deal fell through, leading to the current liquidation plan.
- Store Closures: Throughout 2024, Big Lots has already closed over 400 stores, with the latest announcement marking the end of its physical retail footprint. The closures impact approximately 27,000 employees, signaling one of the year’s largest retail collapses.
Marketing and Brand Management Lessons:
Adapting to Market Changes: Big Lots struggled with a shifting retail landscape where consumer preferences moved towards online shopping and away from traditional discount stores. Marketers can learn the importance of agility in retail strategies, emphasizing the need to pivot towards omnichannel retailing or digital-first approaches.
- Data Point: High inflation and competition from e-commerce platforms were cited as reasons for decreased consumer spending at Big Lots stores.
Brand Perception and Value Proposition: Big Lots positioned itself as a destination for bargains, but as economic conditions changed, its value proposition weakened.
- Insight: Continuous reevaluation of how a brand is perceived in the market is crucial. Big Lots could have explored deeper into niche markets or enhanced its online presence to maintain relevance.
Customer Engagement and Loyalty: With the announcement, Big Lots initiated “going out of business” sales, aiming to liquidate inventory. This move, while common, underscores the importance of customer engagement even in downturns.
- Strategy: Brands should focus on building loyalty beyond price points, perhaps through community engagement or unique in-store experiences that can’t be replicated online.
Financial Health and Transparency: The company’s financial struggles were evident with a reported net loss of over $200 million in the first quarter of its fiscal year, alongside a 10.2% drop in net sales.
- Lesson for Marketers: Financial transparency with stakeholders, including customers, can influence brand trust. Early and clear communication about financial health or strategic shifts can mitigate negative perceptions.
Employee Impact and Corporate Responsibility: The closure affects thousands of employees, raising questions about corporate social responsibility in retail management.
- Action Point: Marketers and brand managers should consider how brand decisions impact human capital, advocating for strategies that support employees through transitions or closures.
Moving Forward:
For those in marketing, sales, and brand management, the closure of Big Lots serves as a poignant case study:
- Innovation or Exit: Retailers must innovate or face the possibility of exit. Understanding when to pivot, how to leverage technology, and when to exit gracefully are all part of modern retail strategy.
- Community and Legacy: Companies should consider their legacy. How they manage closure can impact future perceptions of the brand or its leadership in other ventures.
- Learning from Failures: Each retail closure provides market insights. Observing Big Lots’ trajectory can offer lessons on what not to do and how to better anticipate consumer shifts.
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Rajat N
Web Designer and Digital Marketing Manager with 3+ years of experience at Vibrant Marketer. Skilled in crafting visually appealing and user-friendly websites. Also proficient in content writing and graphic design to enhance brand visibility.