Big Lots, Inc. (NYSE: BIG) is a Fortune 500 retail corporation with annual revenues well over $4 billion. Its department stores focus mainly on selling closeout and overstock merchandise. The company is based in Columbus, Ohio, USA and currently operates over 1,400 stores in 47 states. A typical store sells a wide variety of merchandise, including toys, furniture, clothing, housewares, and small electronics. Most of the items sold in these stores are purchased as they become available. What is in the store one day may not be there the next, and the store may not get further shipments of those particular items. Most of the merchandise in the stores are closeouts and overstocks. However there are some items in the stores, such as foodstuffs, that are replenished on a continual basis.
In many cases, Big Lots uses an existing building, such as a grocery or department store that had either moved or ceased operations.
Big Lots, Inc., incorporated in May 2001, through its wholly owned subsidiaries is a closeout retailer. The Company’s merchandising categories include Consumables, Home, Furniture, Hardlines, Seasonal, and Other. The Consumables category includes the food, health and beauty, plastics, paper, chemical, and pet departments. The Home category includes the domestics, stationery, and home decorative departments. The Furniture category includes the upholstery, mattresses, ready-to-assemble, and case goods departments. Case goods consist of bedroom, dining room, and occasional furniture. The Hardlines category includes the electronics, appliances, tools, and home maintenance departments. The Seasonal category includes the lawn and garden, Christmas, summer, and other holiday departments. The Other category includes the toy, jewelry, infant accessories, and apparel departments. It also includes the results of the closeout deals, which are acquired through the alternate product sourcing operations. At January 30, 2010, the Company operated a total of 1,361 stores in 47 states.
The Company’s stores are located in the United States in strip shopping centers, and have an average store size of approximately 29,800 square feet, of which an average of 21,400 square feet is selling square feet. At January 30, 2010, the Company owned or leased approximately 9.7 million square feet of distribution center and warehouse space. It owned and operated five regional distribution centers placed across the United States. The regional distribution centers are owned and located in Ohio, California, Alabama, Oklahoma, and Pennsylvania. In addition to the merchandise distribution centers, the Company operated two leased warehouses in Ohio.
In the beginning months of 2002, the advertising campaign and a particular commercial entitled "Closeout Moment," beat out approximately 700 entrants to receive honors as a finalist at the Retail Advertising Conference's Awards. Although the advertisement didn't win first place it, in the words of Kent Lasen, Executive Vice-President of Merchandising, "claimed the people's choice" (as reported in Retail Merchandiser, April 2002). Financially, the advertising campaign and overall company facelift has begun to work wonderfully--the average number of transactions increased 4.3 percent and the size of the average transaction increased by 9.7 percent. Consumables, a long-time cash cow for Big Lots, continued to post double-digit sales gains (they already made up 30 percent of Big Lots' sales).
With the unification strategy and rebranding efforts working as planned, Big Lots set its sights on continued expansion. Furniture departments were added to many Big Lots stores, and, in 2002, owned 62 free-standing furniture outlets. Big Lots furniture departments and stores were instant successes as they consistently carried furniture with brands like Pier-1 and sold the stock at 30 percent-50 percent off what customers would pay in the name-brand store. When customers became familiar with Big Lots' possible inventory, the furniture segment of Big Lots grew at least 35 percent, becoming one of Big Lots most profitable sectors.
As Big Lots saw their TV commercials making a difference in the markets they were broadcast to, the company began drafting plans to open 53 new stores in 2002, all in Big Lots current 45-state market. The Company also tested another upgraded design for the Big Lots stores in May 2002; the design included even cleaner and brighter specifications, improved merchandise layouts and new signs.
2002: Big Lots Reports First Quarter Growth
On May 21, 2002, Big Lots reported first quarter net income of $12.2 million, compared to earnings of $0.3 million in the first quarter of 2001. Michael Potter attributed the successful quarter to all of the restructuring and strategic initiatives that the company had undergone since the divesture of Kay-Bee Toys. Customer traffic rose every month since November 2001 after falling for three straight years. There is no doubt that much of Big Lots success is due to the leadership of Michael Potter, who took over the company as Kay-Bee Toys was divested. The company predicted that the coming years will see a rise in sales and stock shares.
Principal Divisions:Big Lots Wholesale; Closeout Division.
Principal Competitors:99 Cents Only Stores; Kmart Corporation; Target Corporation; Wal-Mart Stores, Inc.; Tuesday Morning.
OVERALL
Beta: 1.05
Market Cap (Mil.): $3,091.60
Shares Outstanding (Mil.): 75.20
Annual Dividend: --
Yield (%): --
FINANCIALS
BIG Industry Sector
P/E (TTM): 14.40 31.39 8.93
EPS (TTM): 17.44 -- --
ROI: 20.19 9.98 0.90
ROE: 22.85 15.73 1.56
Statistics:
Public Company
Incorporated: 1967 as Consolidated Stores Corporation
Employees: 46,246 (2002)
Sales: $3.433 billion (2001)
Stock Exchanges: New York
Ticker Symbol: BLI
NAIC: 452990 All Other General Merchandise Stores; 421990 Other Miscellaneous Durable Goods Wholesalers
Key Dates:
1967: Sol Shenk opens his first discount wholesale and retail store, focusing on auto parts.
1967-1971: Shenk's stores grow into a small chain of Corvair Auto Stores.
1982: Consolidated Stores Corporation opens its first Odd Lots closeout store.
1985: Consolidated Stores goes public with a $33.4 million stock offering.
1994: Consolidated Stores named one of the ten most profitable chains in 1994.
1996: The company purchases of Kay-Bee Toys for $315 million.
1999: Internet retail site KBkids.com LLC is launched as a joint venture with BrainPlay.com.
2000: Consolidated Stores divests Kay-Bee Toys Division in a $305 million sale, focusing the company's attention on its closeout business.
2001: Consolidated Stores changes its name to Big Lots, Inc. and launches a $27 million campaign to re-brand its McFrugal's, Pic 'N' Save, and Odd Lots stores; the company launches a business-to-business and begins construction of a 1.2 million square-foot distribution center in Durant, Ohio.
Name Age Since Current Position
Fishman, Steven 59 2005 Chairman of the Board, President, Chief Executive Officer
Cooper, Joe 53 2010 Chief Financial Officer, Executive Vice President
Bachmann, Lisa 49 2010 Executive Vice President - Supply Chain Management, Chief Information Officer
Haubiel, Charles 45 2010 Executive Vice President - Legal and Real Estate, General Counsel, Corporate Secretary
Martin, John 60 2011 Executive Vice President - Administration
Wurl, Douglas 49 2011 Executive Vice President - Merchandising
Claxton, Robert 56 2005 Senior Vice President - Marketing
Rankin, Norman 54 2008 Senior Vice President - Big Lots Capital and Wholesale
Wilson, Harold 62 Senior Vice President - Distribution and Transportation Services
Segal, Robert 56 2008 Senior Vice President, General Merchandise Manager
Chapin, Christopher 47 2008 Senior Vice President - Store Operations
Smart, Steven 51 2010 Senior Vice President, General Merchandise Manager
Schroeder, Paul 45 2005 Vice President, Controller
Johnson, Timothy 43 2004 Vice President - Strategic Planning and Investor Relations
Kollat, David 72 1990 Independent Director
Lauderback, Brenda 60 1997 Independent Director
Tishkoff, Dennis 67 1991 Independent Director
Mallott, Philip 53 2003 Independent Director
Solt, Russell 63 2003 Independent Director
Tener, James 61 2005 Independent Director
Berger, Jeffrey 61 2006 Independent Director
Hayes, Peter 68 2008 Independent Director
Address:
300 Phillipi Road
Columbus, Ohio 43228-0512
U.S.A.
In many cases, Big Lots uses an existing building, such as a grocery or department store that had either moved or ceased operations.
Big Lots, Inc., incorporated in May 2001, through its wholly owned subsidiaries is a closeout retailer. The Company’s merchandising categories include Consumables, Home, Furniture, Hardlines, Seasonal, and Other. The Consumables category includes the food, health and beauty, plastics, paper, chemical, and pet departments. The Home category includes the domestics, stationery, and home decorative departments. The Furniture category includes the upholstery, mattresses, ready-to-assemble, and case goods departments. Case goods consist of bedroom, dining room, and occasional furniture. The Hardlines category includes the electronics, appliances, tools, and home maintenance departments. The Seasonal category includes the lawn and garden, Christmas, summer, and other holiday departments. The Other category includes the toy, jewelry, infant accessories, and apparel departments. It also includes the results of the closeout deals, which are acquired through the alternate product sourcing operations. At January 30, 2010, the Company operated a total of 1,361 stores in 47 states.
The Company’s stores are located in the United States in strip shopping centers, and have an average store size of approximately 29,800 square feet, of which an average of 21,400 square feet is selling square feet. At January 30, 2010, the Company owned or leased approximately 9.7 million square feet of distribution center and warehouse space. It owned and operated five regional distribution centers placed across the United States. The regional distribution centers are owned and located in Ohio, California, Alabama, Oklahoma, and Pennsylvania. In addition to the merchandise distribution centers, the Company operated two leased warehouses in Ohio.
In the beginning months of 2002, the advertising campaign and a particular commercial entitled "Closeout Moment," beat out approximately 700 entrants to receive honors as a finalist at the Retail Advertising Conference's Awards. Although the advertisement didn't win first place it, in the words of Kent Lasen, Executive Vice-President of Merchandising, "claimed the people's choice" (as reported in Retail Merchandiser, April 2002). Financially, the advertising campaign and overall company facelift has begun to work wonderfully--the average number of transactions increased 4.3 percent and the size of the average transaction increased by 9.7 percent. Consumables, a long-time cash cow for Big Lots, continued to post double-digit sales gains (they already made up 30 percent of Big Lots' sales).
With the unification strategy and rebranding efforts working as planned, Big Lots set its sights on continued expansion. Furniture departments were added to many Big Lots stores, and, in 2002, owned 62 free-standing furniture outlets. Big Lots furniture departments and stores were instant successes as they consistently carried furniture with brands like Pier-1 and sold the stock at 30 percent-50 percent off what customers would pay in the name-brand store. When customers became familiar with Big Lots' possible inventory, the furniture segment of Big Lots grew at least 35 percent, becoming one of Big Lots most profitable sectors.
As Big Lots saw their TV commercials making a difference in the markets they were broadcast to, the company began drafting plans to open 53 new stores in 2002, all in Big Lots current 45-state market. The Company also tested another upgraded design for the Big Lots stores in May 2002; the design included even cleaner and brighter specifications, improved merchandise layouts and new signs.
2002: Big Lots Reports First Quarter Growth
On May 21, 2002, Big Lots reported first quarter net income of $12.2 million, compared to earnings of $0.3 million in the first quarter of 2001. Michael Potter attributed the successful quarter to all of the restructuring and strategic initiatives that the company had undergone since the divesture of Kay-Bee Toys. Customer traffic rose every month since November 2001 after falling for three straight years. There is no doubt that much of Big Lots success is due to the leadership of Michael Potter, who took over the company as Kay-Bee Toys was divested. The company predicted that the coming years will see a rise in sales and stock shares.
Principal Divisions:Big Lots Wholesale; Closeout Division.
Principal Competitors:99 Cents Only Stores; Kmart Corporation; Target Corporation; Wal-Mart Stores, Inc.; Tuesday Morning.
OVERALL
Beta: 1.05
Market Cap (Mil.): $3,091.60
Shares Outstanding (Mil.): 75.20
Annual Dividend: --
Yield (%): --
FINANCIALS
BIG Industry Sector
P/E (TTM): 14.40 31.39 8.93
EPS (TTM): 17.44 -- --
ROI: 20.19 9.98 0.90
ROE: 22.85 15.73 1.56
Statistics:
Public Company
Incorporated: 1967 as Consolidated Stores Corporation
Employees: 46,246 (2002)
Sales: $3.433 billion (2001)
Stock Exchanges: New York
Ticker Symbol: BLI
NAIC: 452990 All Other General Merchandise Stores; 421990 Other Miscellaneous Durable Goods Wholesalers
Key Dates:
1967: Sol Shenk opens his first discount wholesale and retail store, focusing on auto parts.
1967-1971: Shenk's stores grow into a small chain of Corvair Auto Stores.
1982: Consolidated Stores Corporation opens its first Odd Lots closeout store.
1985: Consolidated Stores goes public with a $33.4 million stock offering.
1994: Consolidated Stores named one of the ten most profitable chains in 1994.
1996: The company purchases of Kay-Bee Toys for $315 million.
1999: Internet retail site KBkids.com LLC is launched as a joint venture with BrainPlay.com.
2000: Consolidated Stores divests Kay-Bee Toys Division in a $305 million sale, focusing the company's attention on its closeout business.
2001: Consolidated Stores changes its name to Big Lots, Inc. and launches a $27 million campaign to re-brand its McFrugal's, Pic 'N' Save, and Odd Lots stores; the company launches a business-to-business and begins construction of a 1.2 million square-foot distribution center in Durant, Ohio.
Name Age Since Current Position
Fishman, Steven 59 2005 Chairman of the Board, President, Chief Executive Officer
Cooper, Joe 53 2010 Chief Financial Officer, Executive Vice President
Bachmann, Lisa 49 2010 Executive Vice President - Supply Chain Management, Chief Information Officer
Haubiel, Charles 45 2010 Executive Vice President - Legal and Real Estate, General Counsel, Corporate Secretary
Martin, John 60 2011 Executive Vice President - Administration
Wurl, Douglas 49 2011 Executive Vice President - Merchandising
Claxton, Robert 56 2005 Senior Vice President - Marketing
Rankin, Norman 54 2008 Senior Vice President - Big Lots Capital and Wholesale
Wilson, Harold 62 Senior Vice President - Distribution and Transportation Services
Segal, Robert 56 2008 Senior Vice President, General Merchandise Manager
Chapin, Christopher 47 2008 Senior Vice President - Store Operations
Smart, Steven 51 2010 Senior Vice President, General Merchandise Manager
Schroeder, Paul 45 2005 Vice President, Controller
Johnson, Timothy 43 2004 Vice President - Strategic Planning and Investor Relations
Kollat, David 72 1990 Independent Director
Lauderback, Brenda 60 1997 Independent Director
Tishkoff, Dennis 67 1991 Independent Director
Mallott, Philip 53 2003 Independent Director
Solt, Russell 63 2003 Independent Director
Tener, James 61 2005 Independent Director
Berger, Jeffrey 61 2006 Independent Director
Hayes, Peter 68 2008 Independent Director
Address:
300 Phillipi Road
Columbus, Ohio 43228-0512
U.S.A.