In a recent filing, retail giant Big Lots revealed that it has been grappling with net losses and cash usage in operating activities throughout 2022, 2023, and the first quarter of 2024. The company reported a 10.2% year-over-year decline in net sales during the first quarter, totaling $1 billion. Moreover, its net sales for the entirety of 2023 amounted to $4.72 billion, reflecting a 13.6% decrease compared to the previous year.

To further compound its difficulties, Big Lots recently informed investors about an increase in the number of permitted store closures. In amendments made to a credit agreement and term loan facility in late July, the company raised the maximum permitted store closures from 150 to 315, marking a substantial 165-store increase. This decision suggests that Big Lots is seeking to streamline its operations amidst the challenging retail landscape.

Big Lots, which operates nearly 1,400 stores across the United States, offers a wide range of products including home goods, furniture, and seasonal decorations. However, the company's financial struggles and decline in net sales raise concerns about its long-term stability and ability to navigate the ever-evolving retail market.

Despite these ongoing challenges, Big Lots has not provided any comment on the matter in response to requests from FOX Business. The company's silence leaves analysts and stakeholders curious about the steps the retailer plans to take to overcome its financial woes and gain momentum in a highly competitive industry.

With increased store closures, Big Lots will likely need to foster innovation and explore new strategies to remain relevant in the retail landscape. As consumer preferences and shopping habits continue to shift, adapting to these changes will be crucial for the company's future success.

Big Lots' financial performance in the coming quarters will be closely watched by industry experts and investors to ascertain whether the retailer is able to reverse its current downward trend and regain profitability. As the company faces considerable headwinds, its ability to reposition itself and capitalize on new opportunities will be pivotal in determining its long-term viability in an increasingly challenging retail environment.