Big Lots

Founded: 1967
Founder: Sol Shenk
Headquarters: 4900 E Dublin Granville Rd, Columbus, Ohio, 43081, USA
Phone: 614-278-6800
Number of employees: 30,000
Website: www.biglots.com

Overview

Big Lots, Inc., originally known as Consolidated Stores Corporation, was founded by Sol Shenk in 1967. Sol Shenk had a deep love for making deals, specifically with closeout merchandise, which became the foundation of Big Lots.

The first store opened in Columbus, Ohio, in 1982 under the Odd Lots banner. Big Lots started its operation as a consolidator of companies that deal with merchandise closeouts. They bought discounted or overstocked merchandise and sold it at low prices in their stores.

In 1983, Consolidated Stores Corp. introduced the Odd Lots closeout chain. To solve a trademark dispute in 1985, Consolidated agreed for Odd Lots to be renamed as Big Lots in markets operated by Revco, resulting in the eventual phase-out of the Odd Lots name in favor of the Big Lots brand.

Initial Public Offering

Big Lots, originally known as Consolidated International, Inc., made its initial public offering (IPO) in 1986. The company went public to raise capital and further its expansion plans. The shares were listed on the New York Stock Exchange (NYSE), under the ticker symbol ‘CNS.’

In 2001, the company changed its name to Big Lots, Inc. and subsequently changed its NYSE ticker symbol to ‘BIG.’ This was in line with its rebranding efforts and to better represent its retail operations to investors, customers, and the public.

Product Offering

Big Lots offers a wide and ever-changing assortment of products, primarily driven by the company’s unique business model of buying overstocked and closeout merchandise. Here’s an overview of the product categories typically found in Big Lots stores:

Furniture: Big Lots provides an extensive array of furniture for every room in the house, including living room, bedroom, kitchen and dining, home office, and outdoor furniture. In addition, the company has its own exclusive furniture brand, Broyhill, offering high-quality items at competitive prices.

Seasonal Goods: The company stocks a wide range of seasonal goods throughout the year. This includes items for holidays such as Christmas, Halloween, and Easter, as well as seasonal items like gardening tools and outdoor furniture in the summer, and heaters and blankets in the winter.

Home Décor and Home Goods: Big Lots carries a vast selection of home décor items, including rugs, curtains, decorative accents, lighting, and more. They also sell a range of home goods, such as kitchenware, small appliances, and storage and organization products.

Grocery: The grocery department includes canned and packaged foods, fresh and frozen foods, drinks, snacks, baking needs, and more. They also offer a variety of international foods and special diet items.

Health and Beauty: Big Lots offers an array of health and beauty products, including personal care items, cosmetics, skincare products, over-the-counter medicines, and health supplements.

Electronics, Toys, and More: The Company also sells electronics and accessories, toys, pet supplies, automotive products, and various other items, rounding out their comprehensive product offering.

It’s worth noting that due to Big Lots’ opportunistic buying model, the specific items and brands available can vary greatly from store to store and from week to week. This variability is part of the “treasure hunt” shopping experience that Big Lots offers – you never know what you might find in their stores.

Unique Business Model

Big Lots operates a distinctive business model within the retail sector. Instead of selling a consistent line of products, Big Lots specializes in selling overstocked, closeout, and discounted items. These items typically come from manufacturers who have made too much of a particular product, are updating their packaging, or are discontinuing a line of goods.

This means that the company can sell high-quality products at prices significantly lower than traditional retail prices. The diverse and continually changing assortment of merchandise adds a “treasure hunt” aspect to shopping at Big Lots that many customers enjoy. They never know what they might find in the store on any given day, which can make shopping there an adventure.

This business model, often referred to as opportunistic buying, allows Big Lots to be flexible and adaptive to market conditions. For instance, when manufacturers have a surplus of goods, Big Lots can buy these items at a lower cost, which it can then pass on to its customers. This not only means more variety for customers but also a lower price point than what they would typically find at other retailers.

In addition to selling closeouts and overstocked items, Big Lots has also developed private brands, like Broyhill, which further add to their product lineup. These exclusive brands provide customers with additional value, as they offer high-quality items at competitive prices.

To support this unique business model, Big Lots uses robust logistics and supply chain operations to efficiently manage the large and varied quantity of merchandise. Its distribution centers across the U.S. ensure that goods are delivered to stores quickly, allowing for rapid turnover of merchandise and freshness of inventory.

Also noteworthy is Big Lots’ focus on sustainability. By selling closeouts and overstocks, they help prevent these items from ending up in landfills, thus contributing to a more sustainable economy.

To supplement the in-store experience, the company has invested in its e-commerce platform and customer loyalty program. Their online store allows customers to shop from the convenience of their homes and pick up their purchases in-store or have them delivered, enhancing the shopping experience. The customer loyalty program, “Big Rewards,” gives customers the chance to earn discounts and rewards, further enhancing the value proposition of shopping at Big Lots.

Big Lots’ unique business model is built around opportunistic buying and selling closeouts and overstocked items. This approach, coupled with a diverse and ever-changing product lineup, robust supply chain, and customer-centric services, allows Big Lots to offer exceptional value to its customers while maintaining a flexible and adaptive business operation.

Partnerships

Big Lots has entered into several strategic partnerships to expand its reach, improve its service offerings, and support various community initiatives.

Instacart Partnership
In 2020, Big Lots partnered with Instacart, a leading grocery delivery and pick-up service in North America. This partnership marked its first foray into same-day delivery. Through this collaboration, customers can shop for groceries, essentials, and household goods from Big Lots and have them delivered straight to their doors.

Draper James Partnership
In 2020, Big Lots announced a partnership with Draper James, a lifestyle brand founded by actress Reese Witherspoon. The partnership saw the launch of an exclusive, co-branded outdoor décor collection called Draper James Sunshine.

On-Campus Pantries Partnerships
To combat food insecurity among college students, Big Lots has partnered with several schools to establish on-campus food pantries. One such partnership was with Star House for a pantry at Columbus State Community College, launched in 2021.

PalletOne Partnership
In an effort to reduce waste and promote sustainability, Big Lots entered a partnership with PalletOne, the largest new pallet manufacturer in the United States, in 2020. Through this partnership, Big Lots recycles wooden pallets from its distribution centers, which are then repaired or repurposed by PalletOne.

These partnerships demonstrate its commitment to improving its service offerings, supporting charitable initiatives, and promoting sustainability. They underscore the company’s adaptability and its focus on customer convenience and community involvement.

Awards and Recognition

Big Lots, through its dedicated community service and excellent business practices, has earned several recognitions and awards over the years.

Forbes Recognition: In 2019, Forbes recognized Big Lots as one of “America’s Best Employers By State.” This recognition highlights the company’s commitment to fostering a positive work environment and its dedication to employee satisfaction.

Corporate Caring Awards: Big Lots has been a frequent recipient of the Corporate Caring Awards from Columbus Business First. This recognition acknowledges the company’s outstanding contributions to Central Ohio’s non-profit organizations. In 2016, Big Lots was recognized in the Benefactor of the Year category for its significant donation to the Nationwide Children’s Hospital.

Top Corporate Philanthropist: Big Lots has been named a top corporate philanthropist in Central Ohio. This title acknowledges the considerable donations and contributions the company has made to local charitable organizations.

EPA Recognition: In 2018, the company was recognized by the U.S. Environmental Protection Agency (EPA) for its efforts to reduce waste. The company received the WasteWise Large Business Partner of the Year award for its success in reducing waste and enhancing its recycling program.

These awards and recognitions underscore Big Lots’ dedication to community service, sustainability, and employee satisfaction. They reflect the company’s commitment to corporate social responsibility and its mission to serve everyone like family.

Charitable Initiatives

Big Lots, through its Big Lots Foundation, has consistently shown its dedication to serving and improving the communities where its stores are located.

Nationwide Children’s Hospital
One significant initiative by Big Lots is its long-standing partnership with Nationwide Children’s Hospital. In 2016, the company donated $50 million to the hospital’s behavioral health program, marking one of the largest corporate donations to a mental health program in America. This donation was used to establish the Big Lots Behavioral Health Pavilion, a dedicated facility for pediatric mental and behavioral health in Columbus, Ohio.

On-Campus Pantries
Another initiative is the establishment of on-campus food pantries in partnership with various schools. In 2021, Big Lots announced that they were teaming up with Star House to open a pantry at Columbus State Community College, which would provide free groceries to students facing food insecurity.

Holiday Toy Drive
Every holiday season, Big Lots stores across the country participate in a toy drive, encouraging shoppers to buy and donate toys in stores for children in need. The donated toys are then distributed in the local communities.

Donations to Nonprofits
Big Lots also supports numerous nonprofits through product donations. For example, the company has donated furniture and household items to Housing Families First, a nonprofit that helps families experiencing homelessness in Richmond, Virginia.

Covid-19 Response
During the Covid-19 pandemic, Big Lots demonstrated its commitment to community support by donating $1 million worth of products to the Ohio Governor’s Imagination Library in April 2020. The donation included books and learning materials for children aged five and under, aimed at supporting children’s learning as schools shifted to remote instruction.

Charitable Sales Events
Big Lots holds regular charitable sales events, such as the annual “Give Big for Kids” campaign where two dollars from every purchase supports pediatric care and research at Nationwide Children’s Hospital.

These initiatives demonstrate Big Lots’ dedication to supporting the communities it serves. Through a combination of monetary donations, product donations, community events, and strategic partnerships, Big Lots continues to have a significant positive impact on a wide range of social issues.

Big Lots stands as a unique entity in the retail industry, embracing the philosophy of providing high-quality goods at discounted prices. Its history and growth, marked by strategic acquisitions and expansions, reflect its adaptability. The company’s emphasis on community involvement and partnerships reinforces its role as not just a retail giant, but a dedicated community player. Despite facing ups and downs, Big Lots’ continued success underscores its resilience and potential for future growth. Its story serves as a testament to the value of a strong business model, adaptability, and a focus on both customers and community.

Disclaimer: Please note that the names and positions of employees mentioned may be subject to change, as individuals may move to different roles or organizations. While we make every effort to keep our information accurate and up-to-date, we cannot guarantee that all employee details are current or complete. We encourage you to verify the identity and positions of any individual mentioned and check their Linkedin Profile before taking any action based on their role.