Big Lots Swot Analysis

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SECTION I: INTRODUCTION OF BIG LOTS, INC. AND INDUSTRY ENVIRONMENT Big Lots, Inc. is a U.S. discount retailer with the goal to “exceed core customers’ expectations by providing her with great savings on value-priced merchandise” (Big Lots, 2015 10K, Page 2). Their overall sales performance is evaluated based on the seven key merchandising categories, including Food, Consumables, Soft Home, Hard Home, Furniture, Seasonal, and Electronics & Accessories. The company operates a total of 1,449 stores in 47 states of the United States. Among the stores, 33% of which operate in California, Texas, Ohio, and Florida, and net sales from these stores occupied up to 35% of the company’s net sales of 2015, the 52-week year starting at 02/01/2015 and ending at 01/30/2016.
As the company stated in SEC filings, the discount retail industry is highly competitive; therefore, Big Lots has to compete with
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Based on Bloomberg data, the gross margin of Big Lots for 2013, 2014 and 2015 increased a little, from 39.17% to 29.83%. Yet, net income margin decreased by 9.7% from 2013 to 2014, but recovered by 24.7% from 2014 to 2015. This fact may indicate that the competition faced by Big Lots did have a material impact on their operating performance; however, their management made successful decisions in their operational strategies, leading to the recovery in 2015.
As for the liquidity of Big Lots, their current ratios for 2013 to 2015 fall in the reasonable range of 1.4 and 2.0. However, the quick ratios of Big Lots decreased from 0.12 to 0.08, indicating Big Lots may have trouble paying back short-term debt (since inventories occupied over 85% of current assets). In addition, as reported by Big Lots 10K, Big Lots had a total of around 1,956 million of contractual obligations at 01/30/2016. Among which, about 46.5% would be due in less than a year. Thus, Big Lots may encounter difficulty paying their short-term debt in near

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