Part 6/9:
Over the last decade, Big Lots has attempted to pivot more toward furniture offerings, hoping to capture changing consumer habits during the pandemic. While their sales surged initially, the following years painted a stark contrast as inflation and falling real estate transactions sunk demand. The period of high demand isolated Big Lots, as consumers who had upgraded their home furnishings during the pandemic saw no reason to shop for more in subsequent years. Consequently, inventory piled up, leading to heavy markdowns and, ultimately, financial losses.