Big role for furniture coming in Big Lots new test stores , March 3, 2017 COLUMBUS, Ohio — Furniture, one of Big Lots’ top-performing categories, will have a big role in the retailer’s “store of the future” test program beginning this year. The retailer is in the early stages of planning but will begin testing new store concepts in two markets this year, said Big Lots President and CEO David Campisi on the fourth quarter earnings call with the investment community Friday. He did not disclose the markets but added later that the tests would be “in the back half” of the year and, with positive results, the company would add test markets in 2018 and 2019. "We believe there’s so much upside in furniture,” Campisi said on the call, noting that “Jennifer,” the name Big Lots uses to identify its target customer, is not yet giving it full credits for the category. “Even today, many Jennifers are surprised to hear we sell furniture, an own-able category and our single largest business,” he said.
“This is a huge opportunity and a perfect example of why we’re still at the beginning of the beginning.” The 1,432-store bargain-oriented retailer didn’t provide a lot of details on the pilot store program. It noted that furniture sales benefited from last year’s expansion of the space dedicated to the category and an enhanced assortment along with growth in use of a third-party lease offering. “We’re giving it more space and will continue to do that,” Campisi said. “Furniture is going to benefit from the store of the future.” Chief Financial Officer Tim Johnson said the investment in store-of-the-future remodels is estimated to be $500,000 to $600,000 per store, though that number could change. The news came as Big Lots posted fourth quarter net income of $90.1 million for the fiscal fourth quarter ended Jan. 28, down 4.7% from $94.5 million for the same period a year ago. On a per-share basis, net income rose to $1.99 from $1.91. Net sales decreased slightly to just under $1.58 billion, and same-store sales increased 0.3% for the retailer’s 12 th consecutive quarter of flat or positive results.
Big Lots’ adjusted net income per share, excluding one-time expenses and charges, beat its earlier guidance, coming in at $2.26 per share vs. $2.01 per share for the same period a year ago. “Furniture remains a leading own-able category, comping up mid-single digits against a high-single digit comp last year,” Campisi said, noting particular strength in mattresses and upholstery. Campisi said Big Lots expects furniture sales gains this year will again be in the mid-single digit range but added major consolidation underway in retail — mass closings at JCPenney, Macy’s and Sears and Kmart, for example — could change the picture. The company, he said, recently met with executives from Serta, who were “clear with us we’re taking share,” in a tough retail climate, Campisi said. With the Macy’s and Penney closings coming, “some of that (business) has got to come our way. We just don’t’ know how much,” he added. For the full year, Big Lots posted a 7% increase in net income to $152.8 million and net income per share of $3.32, up from $2.80 a year ago.
Net sales increased slightly to $5.2 billion. On the furniture side, Campisi said the company is “razor focused on figuring out how to flow goods to the store so we can continue to increase the sales number.” “2016 was a year for the team to step out of the brown-only assortment and test some other colors,” he said. “It worked and it has given them the confidence and courage to continue down that path.” Consumer Reports evaluates sofas Tempur Sealy CEO offers plans in wake of Mattre... Top 25 furniture manufacturers Big role for furniture coming in Big Lots new t... Tempur Sealy will sell Mattress Firm franchisees View All Conversation VideosHaving the right mattress can be crucial to getting a good night's sleep. So how do you choose the right one for you -- and for your wallet? The first step is picking the right store. Consumer Reports recently surveyed 20,000 of its subscribers to find out which mattress retailers people are most satisfied (and dissatisfied) with -- based on price, selection, shopping experience, cleanliness and other factors relevant to each type of retailer.
Read more: 6 best mattresses for couples According to the survey, traditional sellers, mattress chains and department stores scored the worst. Shoppers were most dissatisfied with the prices and shopping experience. The survey also found that price is the biggest factor for most shoppers, and people who shopped around were able to find better deals elsewhere. Even some online retailers scored high in the rankings -- based on price, selection and on-time delivery. According to the survey, here are the best and worst stores. Once you're ready to shop, here's a look at the best mattresses for your money! The 23 Most-Overlooked Tax Deductions 11 Dow Stocks Owned by Warren Buffett 7 Features That Will Sell Your Home Faster Kiplinger's Financial Field Manual for Military Families 6 Ways to Save Even More at Discount Retailer Big Lots Courtesy CyberXRef via Wikimedia When you shop at Big Lots, don’t expect to cross everything off your list.
The shopping experience at the popular discount retailer is more of a treasure hunt. Sure, you can shop for groceries and home goods on the cheap at Big Lots, but selection is inconsistent. And the company takes pride in providing surprises and special deals down every aisle. Big Lots, which operates more than 1,400 stores nationwide, specializes in cutting deals on closeouts and overstocks from other retailers. Big Lots buys it on the cheap and sells it that way. As soon as you roll your shopping cart into a Big Lots store, you’re immediately hit with 50%-off deals and clearance racks with even bigger markdowns. “A large percentage of Big Lots’ inventory comes from after-season overstock and discontinued products from retailers and manufacturers,” explains Brent Shelton, of deals website FatWallet. Take a look at what to expect -- and how to save even more -- on your first or next visit to Big Lots. SEE ALSO: 10 Kirkland Products You Should Buy at Costco