Essay on Big Lots, Inc. And Industry Environment

1715 Words Dec 7th, 2016 7 Pages
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 various retailers, including other discount stores, dollar stores, and e-commerce platforms which have increased rapidly in the popularity among customers. Due to immense competition with their rivals, Big Lots has endured significant dropping in annual net income. As a result, the company made adjustments in their operating strategies and leadership. According to the Form 10Ks and earning calls, Big Lots introduced the “Edit to Amplify operating strategy,” which specifically focuses on improving net sales. Furthermore, a new Chief Customer Officer, who has experience in digital and…

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