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In 2018, they appointed a new CEO, and in 2019, he launched Operation North Star, a strategic overhaul focused on unlocking Big Lots' true value.

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Overall, the business was historically stable, with extremely consistent gross margins in the 39–40% range and generating anywhere from $150 million to $250 million of free cash flow in a typical year. They also fulfill direct-ship e-commerce orders from 65 store locations One warehouse transports fixtures and supplies to their stores, whereas the other warehouse serves as a fulfillment center for the e-commerce business. In addition to the distribution centers, Big Lots operates two other warehouses within its Ohio distribution center. The majority of their inventory is delivered to stores from five regional distribution centers in order to reduce transportation costs and make the entire supply chain more efficient. They purchase inventory from both domestic and international manufacturers and frequently take advantage of various close-out opportunities such as production overruns, liquidations, packaging changes, discontinued products, and so on.īig Lots' main goal is to provide their customers with huge savings and exceptional value with their never-out products and essentials, as well as to surprise them with unique products (purchased in close-out deals) in the treasure hunt section of the store (similar to Ollie's) They sell a broad range of merchandise, with furniture, home décor, food, and consumables being the most prevalent. Big Lots is a home discount retailer with over 1400 locations in the United States as well as an e-commerce platform.