The discount retail space has become crowded and multiple players in the space use a variation of the “our prices are so low, you’ll think we’re insane” marketing slogan.
That’s fertile ground to occupy during this period in American history, where even wealthier people are guarding their wallets. In a time of increased inflation, prices are driven higher by tariffs and increased labor costs, and discount retailers are primed for success.
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Customers who may not be willing to shop at traditional dollar stores like Dollar Tree and Family Dollar. Discount retailers that don’t use the dollar model, however, have been embraced by a broad array of customers.
That includes retailers like 5 Below and Dollar General’s PopShelf, which use a discount model where the stores are also sort of hip. The “Who knows what I might find?” model does not have the stigma that dollar stores do.
Not everyone thinks that way, but discount retailers generally have to straddle a line between being seen as stores just for struggling people and places where smart consumers can get really good deals. Â
Retailers, including Ollie’s Bargain Outlet and Variety Wholesalers, both have managed to be a little chic while also being cheap. Both of those chains have taken over closed (or closing) Big Lots locations.
In the case of Ollie’s, the chain will remodel them under the Ollie’s name. Variety Wholesalers will reopen about 200 locations, actually using the Big Lots name.
Big Lots Stores have been having going out of business sales.
Image source: TheStreet
Big Lots stores have proven popular
When a retailer declares Chapter 11 bankruptcy and elects to wind down operations, it usually hires an outside company to sell off its inventory and sell off its leases. In most cases, leases get sold to a variety of retailers and restaurants that aren’t necessarily in the same space as the closing store.
Big Lots has gone in a somewhat different direction as part of its liquidation. It sold the entire company to Gordon Brothers, a company that specializes in maximizing the value of distressed assets.Â
“Throughout the restructuring, our firm not only provided financing, but the guidance, expertise, and services needed to develop and lead a multi-faceted solution to avoid layoffs and maximize value,” said Gordon Brothers Chief Transaction Officer, North America Kyle C. Shonak.
More closings:
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This deal has allowed more Big Lots stores to reopen. That’s something Gordon Brothers’ executives are proud of.
“Through our tireless efforts and close collaboration with Variety Wholesalers, we are not only enabling the continued operation of hundreds of Big Lots stores but also helping to keep employees in their jobs,” said Gordon Brothers Co-Head of North America Real Estate Al Williams.
More Big Lots stores will reopen
When it comes to the Big Lots, however, the company has had a very different going out of business sale experience. Many of its locations have been taken over by rivals operating similar business models.
Ollie’s and Variety Wholesalers have now been joined by Ocean State Job Lot, a company that has stores that look a lot like Big Lots locations,Â
“Ocean State Job Lot (OSJL), the region’s premier discount retail chain with 159 stores across the Northeast, is pleased to announce that it is in the process of acquiring 15 Big Lots locations in eight states. Legal documentation is being finalized. OSJL plans to open up to 22 new stores this year, including the 15 former Big Lots locations and five to seven additional locations,” Ocean State Job Lot shared in a press release.
OSJL will add two new states, Maryland and Delaware, to its territory in 2025.
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These stores will operate under the Ocean State Job Lot Brand.
“The acquisition of the Big Lots stores continues OSJL’s strategic repurposing of former retail sites. In 2024, the company opened stores in four former Christmas Tree Shops properties with a fifth and sixth slated to open in early 2025. Since 2019, OSJL has converted 12 former Toys R Us stores into Job Lot locations,” it shared.
OSJL will hire for up to 70 positions in each store, including store leadership; supervisory; and full-time, part-time, and seasonal associates. Current Big Lots associates will be offered positions.
