Dive Brief:
- On Thursday, Big Lots announced the return of its Black Friday Fridays deals event. Deals began this past Friday and will run every Friday through Dec. 6, with the retailer offering discounts of up to 50% off in stores.
- The deals event follows the mass retailer’s acquisition of a “well-known national party supply retailer's overstock,” valued originally at $11 million, and “marking the Company's biggest extreme bargain Halloween closeout ever,” the company said in a press release.
- Deals — which span across categories like holiday gifts and seasonal decor — will be announced on Thursday mornings. The company’s Big Rewards members will be among the first to be informed about each week’s deals.
Dive Insight:
Big Lots’ announcement about its holiday deals comes just days after the retailer filed for Chapter 11 bankruptcy protection.
The retailer entered bankruptcy with a stalking horse agreement with Nexus Capital Management, under which the investment firm would acquire most of Big Lots’ assets for about $620 million. The retailer late last week also announced that it received court approval to immediately access $550 million of $707.5 million in available bankruptcy financing.
The filing came after Big Lots in August said it could close up to 315 locations of its 1,300-plus store footprint after it amended its credit and loan terms. Big Lots said it plans to remain in business when it exits bankruptcy.
The earlier-than-usual Black Friday events also play into a trend that’s picked up momentum over the past several years of deals being offered sooner in the holiday season. Retail giants such as Amazon, Walmart, Target and Best Buy have been introducing October sales events to kick off the season.
“We know that many family budgets are stretched again this year, with some choosing to shop earlier than ever for items on their holiday lists," Bruce Thorn, Big Lots president and CEO, said in a statement. "Staying true to our reason for being, Big Lots is helping shoppers live big and save lots again this season by giving them a significant head start on some of our biggest Black Friday-level deals of the year."
According to a recent Bankrate study, 33% of consumers said they would spend less this holiday season, citing inflation and high interest rates as contributing factors. However, overall holiday sales are still projected to grow between 2.3% and 3.3%, according to a Deloitte survey.
