Although discount retailer Big Lots saw a slight drop in its quarterly net sales in the last three months of fiscal 2021 compared to 2020 and less than 8% growth from the same period two years ago, CEO Bruce Thorn told investors and analysts the company’s best is yet to come in 2022 and beyond.
Perhaps the most glaring area of worry for Big Lots is its eCommerce penetration, which was less than 5% in Q4. Thorn outlined a plan that includes a jump to 10% to 15% eCommerce penetration, a move that he says will generate another $500 million to $1 billion or more for the company.
“We have much to be excited about as we enter 2022,” Thorn said in the Big Lots presentation. “Our new store openings are proceeding as planned, our in-stock levels are improving, and our productivity initiatives continue to deliver and gain traction.
“During the fourth quarter, we had a successful holiday helping our BIGionaires Live Big and Save Lots! January was a tough month as inclement weather and the Omicron spike caused a slowdown in our business, further impacted by inventory delays in key areas. “However, as we have moved into 2022, we have seen these factors abate, and sales are regaining traction.
Big Lots plans to open more than 50 new stores in 2022 as part of a long-term plan to open more than 500 new locations, with 80 or more coming each year starting in 2023. The company is also working to make its supply chain more reliable, said Thorn.
The 500-plus new stores could generate $1.5 billion to $2 billion in new sales for Big Lots, he said, adding a sales productivity increase of 15% could bring in another $1 billion.
Related: Here’s Why Discount Retailers are Still Adding New Stores: They Make Shopping Fun
In January, Big Lots said it’s on a mission to expand its unique, “emotionally connected” brand to a base of shoppers that is 75% women.
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