Big Lots, the nationwide discount retail chain, is shutting its doors at over half of its Arizona locations as the company faces a downturn in sales and an upswing in debt. According to a FOX 10 Phoenix report, the closures are part of a larger strategy to shutter 315 stores across the country, an escalation from an initial plan to close 150. The SEC filing detailed a jump in Big Lots' long-term debt, from $501.6 million to $573.8 million within a year, while net sales plummeted by $114.5 million, or 10.2%, in the first quarter of 2024 compared to the same period in the previous year.

In addition to declining sales, Big Lots' CEO Bruce Thorn attributed the company’s financial woes to "continued pullback in consumer spending by our core customers, particularly in high ticket discretionary items," as relayed by AZ Family. Store closures affect multiple Valley locations, including several in Phoenix, Mesa, Tempe, Scottsdale, Gilbert, Peoria, and Glendale, while further closures are set to hit Tucson, Flagstaff, Prescott, Payson, and Green Valley.

Shoppers can identify the closing stores through a 20% off banner on the webpage of each affected location as listed on the company's online store finder. The closures mark a significant retreat for Big Lots in Arizona, stripping cities like Tucson and Phoenix of almost all their Big Lots retail presence, with Tucson losing all four of its locations and Phoenix retaining just one. It reflects not merely a shift in business strategy but nods to the economic pressures facing retailers serving budget-conscious consumers in an ever-volatile marketplace.

Big Lots initially relayed concerns regarding its ongoing viability earlier this fiscal year, noting in a corporate SEC filing that there exists "substantial doubt" about the company's ability to continue as a going concern; this disclosure underscores the scale of the challenges at play for the Ohio-based retailer, which operates over 1,300 stores across 48 states. As these closures proceed, the impact will ripple through communities, stripping away not only shopping options but jobs and anchoring retail presence in numerous local economies, as these doors close, one can only consider the long-term implications for the retail market and the communities bereft of these stores.