COLUMBUS, Ohio — Big Lots continues to face more setbacks as yet another location closes.
The Columbus-based Distribution Center on Phillipi Road shut down Thursday, putting nearly 400 employees out of a job.
What You Need To Know
- The Columbus-based Distribution Center on Phillipi Road is shutting down Thursday, putting nearly 400 employees out of a job
- The retailer has been struggling since the summer when it announced a net loss of $205 million dollars in the first quarter
- By early September, it filed for bankruptcy protection, citing inflation and high interest rates for its financial struggles
The retailer has been struggling since the summer, when it announced a net loss of $205 million in the first quarter. By early September, it filed for bankruptcy protection, citing inflation and high interest rates for its financial struggles.
Lucia Dunn, professor emeritus of economics at Ohio State University, weighed in on Big Lot’s decision.
“If you have a serious inflation” she said, “you would think that an off-price store like Big Lots would be where people would turn. They would actually go there to try to get the lower prices. So, I think you have to talk about competition in that market when you talk about Big Lots.”
She says the convenience of online shopping and Big Lots’ product line also plays a part.
“You can still get batteries cheaper at big lots than anyplace else,” Dunn said, “but they don't have enough of products like that to keep the customer coming in regularly when other stores with the better product variety like Target are, you know, more convenient, like Amazon delivered to your door.”
The ramifications of losing Big Lots here can be felt, but Dunn remains hopeful the economy will bounce back in no time.
“We'll have to wait and see how that plays out,” Dunn said. “But I don't think the impact would be, from just the Big Lots losing here, would be longer than one or two quarters. That would be three to six months.”
Spectrum News 1 reached out to Big Lots to learn more about its decision to shut down its distribution center in Columbus, but the company has yet to respond.