Inflation and declining consumer spending have taken a toll on discount home goods retailer Big Lots, as the company announced plans to shutter additional stores this year. With an already staggering number of closures in 2023, this new development raises concerns about the company's future viability.

According to a June filing with the SEC, Big Lots reported dismal fiscal results, stating that between 35 to 40 stores are set to close this year, in addition to the 52 stores that were already closed last year. The Ohio-based company, which operates approximately 1,400 stores across the United States, highlighted "elevated inflation" as a major factor impacting customers' purchasing power, resulting in substantial losses for the company. The report expressed "substantial doubt" about Big Lots' ability to sustain its operations.

The company's first-quarter net sales decreased by $114.5 million, a significant decline of 10.2% compared to the same period in 2023, highlighting the financial challenges it is currently facing. Additionally, Big Lots has been experiencing continuous losses and relying on diminishing cash reserves since 2022, further fueling concerns about potential bankruptcy.

Despite these alarming developments, Big Lots has remained tight-lipped and did not provide any comments regarding its current situation. However, the company's stock has experienced a dramatic decline, falling by 52% in the past month and a staggering 84% from this time last year. This further emphasizes the extent of the challenges the retailer is grappling with.

Big Lots' struggles are not an isolated incident within the retail industry, as other major chains also face closures and financial instability. Walgreens, for instance, recently announced that it might have to close up to 2,000 stores due to plummeting retail sales. Similarly, Red Lobster abruptly shut down numerous locations last month and subsequently filed for bankruptcy. Other notable retailers such as CVS, Rite Aid, Macy's, Walmart, and Foot Locker have also announced impending store closures this year.

The wave of store closures in the brick-and-mortar retail sector highlights the difficulties faced by traditional retailers in adapting to changing consumer preferences and the rise of e-commerce. As economic challenges, inflation, and dwindling sales continue to impact the industry, it remains to be seen how Big Lots and other retailers will navigate these turbulent waters.

In conclusion, Big Lots' announcement of further store closures reflects the company's ongoing financial struggles in the face of elevated inflation and declining consumer spending. With its stock plummeting and doubts surrounding its ability to continue operations, the retail giant joins a growing list of chains grappling with similar challenges. As the retail landscape continues to evolve, the fate of Big Lots and its peers hinges on their ability to adapt and remain relevant in a changing consumer market.