- Variety Wholesalers acquired Big Lots! IP and about 219 stores (plus distribution assets) from Gordon Brothers after Big Lots’ September 2024 Chapter 11 filing.
- Stores are reopening in waves from April to early June 2025 with remodeled locations and a closeout “treasure hunt” focus.
- The relaunch shifts to everyday low pricing, deemphasizes furniture, and expands bargain apparel and electronics.
- Key risks include inventory fill-rate and seasonal supply timing, customer re-engagement, intensified off-price competition (e.g., Ollie’s), and margin pressure in a volatile macro backdrop.
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The Big Lots! turnaround under Variety Wholesalers reflects a decisive restructuring of both operational and merchandising strategy. Having acquired 219 stores and IP via Gordon Brothers in late 2024, Variety initiated reopenings in three sequential waves from April through early June 2025, culminating in full rollout ahead of the key holiday season. The relaunch is anchored on four major shifts: adopting everyday low pricing, prioritizing highly demanded categories such as apparel and electronics, minimizing the previously emphasized but less frequently demanded furniture, and remodeling locations to align with a discount / closeout “treasure hunt” experience.
Financial dynamics are critical: Big Lots had experienced sharply declining revenues (e.g., about a 10% drop in Q1 2024, net loss of US$205M in that period) prior to bankruptcy. Variety’s strategy emphasizes leaner inventory deployment, leveraging pre‐tariff purchasing, and selective product placement to rebuild customer trust and improve margins. The incremental reopening of 219 stores provides significant footprint, but not without risk—studies of consumer response, fill rates (some stores were reported only ~70% stocked early on), and inventory cadence suggest potential operational strain.
Competitive threats and external enablers also shape prospects. Ollie’s Bargain Outlet and other off‐price retailers have already claimed some former Big Lots locations or leases, particularly in Southern markets. Meanwhile, macroeconomic pressures persist: inflation, interest rates, and consumer spending patterns (especially post-pandemic discretionary demand such as furniture) remain volatile. Variety’s repositioning aligns better with current consumer preferences—but execution across supply chain, merchandising, and store experience will be decisive.
Strategic implications for Variety Wholesalers include: leveraging real estate acquired under this deal to gain scale, recovering lost customer base and brand equity, optimizing assortments to match regional demand, controlling costs through distribution integration, and sustaining marketing momentum post grand-opening. Open questions include how deeply the prior customer base will return, whether margins can be sustained under everyday low pricing, and whether supply chain positioning (for seasonal items, electronics) can keep ahead of competitors.
Supporting Notes
- Big Lots filed for bankruptcy in September 2024, and Variety Wholesalers agreed in December 2024 with Gordon Brothers to acquire the brand, IP, and between 200-400 stores.
- Number of stores acquired/reopened is 219 under the Big Lots brand, with up to two distribution centers included.
- First wave of reopenings started April 10, 2025, with nine stores across six states; second wave (~55 stores) on May 1; most remaining stores reopened through early June.
- The relaunch includes remodeled stores, a large selection of closeout deals, and new merchandise categories including apparel for the family and electronics.
- Pricing strategy shifted: everyday low prices rather than high-low promotions; furniture moved to back of stores because fewer customers prioritized it.
- Grand Opening celebration for all stores held on October 30, 2025, following a kickoff event October 2-5.
- Competitive pressure: Ollie’s Bargain Outlet acquired some former Big Lots locations in certain Southern and Midwestern states.