Big Lots, a prominent discount retailer for furniture and home décor, is facing significant financial hurdles that have led to the closure of numerous stores across the United States, including 34 locations in Arizona, with all four locations in Tucson set to close. The decision comes as the company grapples with the impact of inflation and a downturn in consumer spending, which have severely affected sales and profitability.
The economic landscape in 2024 has been challenging for many retailers, including Big Lots. The company has reported a 10.2% drop in sales between 2023 and 2024, resulting in a loss of $114.5 million. In a recent filing with the Securities and Exchange Commission, Big Lots expressed concerns about its financial stability, citing “substantial doubt” about its ability to continue operations. This uncertainty has fueled speculation about a potential bankruptcy filing.
Greg Furrier, Principal and Retail Specialist at C&W | PICOR, says “Big Lots has long been regarded as an industry pioneer in the closeout merchandise sector. The Tucson stores were above the national average location sales and enjoyed decades of loyal shoppers and exceptional employees. We are saddened to see the underperforming areas of the country pull the Tucson area stores down with them. We have been associated with the market-leading Golf Links and Harrison location for the past 24 years and are confident another business will continue the success Big Lots enjoyed.”
In contrast, Dollar Tree is expanding its footprint, capitalizing on the growing demand for discount retail options. The company plans to open 650 new stores in 2023, nearly 200 more than in 2022. This strategic growth includes the acquisition of the 99 Cents Only chain, adding approximately 170 stores to its portfolio. In Tucson specifically, Dollar Tree currently operates 23 locations, demonstrating its strong presence in the area. The company’s diversified product mix and aggressive expansion have allowed it to maintain a robust market position, appealing to budget-conscious consumers and outperforming competitors like Big Lots by continuing to meet customers adapting needs.
While the closure of Big Lots stores may seem like a setback, it opens new opportunities for other retailers. Tucson has seen a growing demand for fitness centers, entertainment venues, and other discount retailers. Additionally, brokers and landlords in the area have been innovative in repurposing existing spaces to meet evolving consumer expectations and market demands.
Currently, C&W | PICOR is offering a former Big Lots location for lease at 2520 South Harrison Road:
Former Big Lots Store – Now for Lease by Greg Furrier and Natalie Furrier
This 26,500-square-foot property is strategically situated at a busy intersection on Tucson’s east side. It has strong neighboring tenants, including ArchWell Health, Bookmans, Walgreens, Safeway, and Dollar Tree, making it an ideal location for businesses looking to capitalize on local foot traffic and visibility. For more information on this leasing opportunity, please contact Greg Furrier (gfurrier@picor.com) or Natalie Furrier (nfurrier@picor.com).
SOURCES:
“Big Lots Locations in Tucson, AZ: Furniture, Mattresses, Home Decor & Groceries.” Big Lots Locations in Tucson, AZ | Furniture, Mattresses, Home Decor & Groceries, local.biglots.com/az/tucson. Accessed 12 Aug. 2024.
“Dollar Tree.” Dollar Tree, Extreme Values Every Day, www.dollartree.com/locations/az/tucson/. Accessed 12 Aug. 2024.
jgorman@siadvance.com, Jessica Jones-Gorman |. “Big Lots to Close More than 140 Stores: Here’s The Full List.” Silive, 2 Aug. 2024, www.silive.com/business/2024/08/big-lots-to-close-more-than-140-stores-heres-the-full-list.html.
Moss, Linda. “Dollar Tree to Step up Store Openings with 650 This Year.” CoStar, 1 Mar. 2023, www.costar.com/article/621588747/dollar-tree-to-step-up-store-openings-with-650-this-year.
Schutte, Karen. “Big Lots Adds to Store Closures – 18 in Arizona / 4 in Tucson.” Real Estate Daily News, 5 Aug. 2024, realestatedaily-news.com/big-lots-adds-to-store-closures-18-in-arizona-4-in-tucson/.
