Big Lots has announced the acquisition of the entire inventory of toy company Hearthsong, as part of its strategy to enhance its offering of competitively priced products. This move follows the appointment of Seth Marks to the newly created role of Senior Vice President of Extreme Value Sourcing at the end of last year, aimed at bolstering the retailer’s focus on providing extreme bargains, according to President and CEO Bruce Thorn.
The acquisition is part of Big Lots’ efforts to reinforce its position in offering exceptional deals and unique products at competitive prices. “We’re pleased with the strategic acquisition of Hearthsong toys,” Marks commented. Thorn added, “This acquisition underscores our dedication to reclaiming our bargain heritage, enabling us to provide dynamic, innovative products at unmatched prices.”
The company aims to reestablish its leadership in the off-price and closeout sourcing sector, emphasizing its commitment to sourcing the best deals directly for its customers, enhancing their shopping experience with the discovery of bargains and unique values.
This strategic step comes at a critical time for Big Lots, following an announcement during an earnings call last May about closing four distribution centers and engaging in store leasebacks to reduce expenses. Furthermore, the retailer has been identified on Retail Dive’s bankruptcy watch list, with a FRISK Score of 2 from CreditRiskMonitor, indicating a 4% to 10% chance of filing for bankruptcy. In its third-quarter report, Big Lots noted a 14.7% decrease in net sales to $1.03 billion and a 13.2% decline in comparable sales.
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