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Company > Big Lots Inc: Business Model, SWOT Analysis, and Competitors 2023

Big Lots Inc: Business Model, SWOT Analysis, and Competitors 2023

Published: May 01, 2023

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    In this blog article, we will delve into the business model, SWOT analysis, and competitors of Big Lots Inc, a prominent retail company. By analyzing their business model, we will gain insights into how they create value and generate revenue. Additionally, conducting a SWOT analysis will help us assess the company's strengths, weaknesses, opportunities, and threats. Finally, we will examine their competitors to understand the competitive landscape in which Big Lots operates. Stay tuned to discover key aspects of Big Lots Inc's strategy and its position in the market by 2023.

    What You Will Learn:

    • Who owns Big Lots Inc and the significance of its ownership structure in the company's decision-making and performance.
    • The mission statement of Big Lots Inc and how it serves as a guiding principle for the company's operations and strategic direction.
    • How Big Lots Inc generates revenue and makes money through its various business activities and revenue streams.
    • An in-depth explanation of Big Lots Inc's Business Model Canvas, outlining the key elements that drive the company's success and profitability.
    • A comprehensive overview of Big Lots Inc's main competitors in the retail industry and how they impact the company's market position and competitiveness.
    • A detailed SWOT analysis of Big Lots Inc, examining the company's strengths, weaknesses, opportunities, and threats, and how these factors influence its overall performance and growth potential.

    Who owns Big Lots Inc?

    Ownership Structure of Big Lots Inc.

    Big Lots Inc., a popular American retail company, has a diverse ownership structure. Let's take a closer look at who owns the company.

    Institutional Shareholders

    Institutional investors play a significant role in owning Big Lots Inc. These investors include mutual funds, pension funds, and other financial institutions. As of the latest available information, some of the largest institutional shareholders of Big Lots Inc. are:

    1. BlackRock Inc.: BlackRock is a leading global investment management corporation that owns a substantial stake in Big Lots Inc. Through various funds and accounts, BlackRock holds a considerable number of shares in the company.

    2. The Vanguard Group: As one of the world's largest investment management companies, The Vanguard Group owns a significant portion of Big Lots Inc. Vanguard's funds and accounts hold a substantial number of shares, indicating its confidence in the company.

    3. State Street Corporation: State Street Corporation, a major financial services provider, also holds a notable position in Big Lots Inc. Through its various subsidiaries and funds, State Street Corporation owns a considerable number of shares in the company.

    Insider Ownership

    Insider ownership refers to the shares held by individuals closely connected to the company, such as executives, directors, and employees. Insider ownership can provide insight into the confidence and alignment of these individuals with the company's success. As of the latest available data, some key insiders who own significant shares in Big Lots Inc. include:

    1. Bruce K. Thorn: Bruce K. Thorn serves as the President and CEO of Big Lots Inc. He has a substantial personal stake in the company, demonstrating his commitment to its growth and profitability.

    2. Timothy Johnson: Timothy Johnson is the Executive Vice President, Chief Administrative Officer, and Chief Financial Officer of Big Lots Inc. He also holds a notable number of shares in the company, indicating his belief in its long-term prospects.

    3. Lisa M. Bachmann: Lisa M. Bachmann is the Executive Vice President, Chief Merchandising and Operating Officer of Big Lots Inc. Like other key insiders, she holds a significant stake in the company, aligning her interests with the company's success.

    Public Shareholders

    Apart from institutional and insider ownership, Big Lots Inc. is also owned by individual public shareholders. Public shareholders are individuals like you and me who invest in the company's stock through various brokerage accounts. These shareholders collectively hold a significant portion of the company's shares.

    It's important to note that the ownership structure of Big Lots Inc. can change over time as investors buy or sell shares. Therefore, it's advised to refer to the latest available information or consult reliable financial sources for the most up-to-date ownership details.

    What is the mission statement of Big Lots Inc?

    Understanding Big Lots Inc's Mission Statement

    A mission statement is a concise statement that defines the purpose and goals of a company. It serves as a guiding principle for the organization, outlining its core values and aspirations. For Big Lots Inc, a well-known American retail company, their mission statement is as follows:

    "Surprise and delight our customers with savings, selection, and service while providing a unique and enjoyable shopping experience."

    This mission statement reflects Big Lots Inc's commitment to providing exceptional value to its customers. The company strives to go beyond simply offering low prices by focusing on three key aspects: savings, selection, and service.

    Savings

    One of the core tenets of Big Lots Inc's mission statement is to surprise and delight customers with savings. The company aims to offer products at discounted prices, allowing customers to save money without compromising on quality. By consistently providing competitive prices, Big Lots Inc ensures that customers feel satisfied with their purchases and view the company as a reliable source for affordable products.

    Selection

    Another important aspect of Big Lots Inc's mission statement is its emphasis on selection. The company strives to offer a diverse range of products to cater to the varying needs and preferences of its customers. By regularly updating its inventory and introducing new items, Big Lots Inc aims to provide a wide array of options, ensuring that customers can find what they are looking for under one roof. This commitment to selection ensures that customers have a positive and convenient shopping experience.

    Service

    In addition to savings and selection, Big Lots Inc places a strong focus on service. The company aims to provide excellent customer service, ensuring that shoppers feel valued and supported during their visit. This includes offering assistance, answering inquiries, and addressing any concerns promptly and professionally. By prioritizing service, Big Lots Inc aims to create a unique and enjoyable shopping experience that keeps customers coming back.

    Overall, Big Lots Inc's mission statement encapsulates its dedication to surprising and delighting customers through savings, selection, and service. By adhering to these principles, the company strives to establish itself as a trusted retailer that offers exceptional value and an enjoyable shopping experience.

    How does Big Lots Inc make money?

    Retail sales

    The primary source of revenue for Big Lots Inc is retail sales. As a discount retailer, Big Lots offers a wide range of products at significantly lower prices compared to traditional department stores. They sell a variety of merchandise, including furniture, home decor, electronics, toys, food, and apparel. By attracting price-conscious consumers, Big Lots generates revenue through the sale of these products.

    Private label brands

    In addition to selling well-known brands, Big Lots Inc also generates revenue from its private label brands. These brands are owned and exclusively sold by Big Lots, allowing the company to capture a larger portion of the profit margin. The private label brands offer a range of products across different categories, providing customers with affordable alternatives to national brands. Through the sales of their private label products, Big Lots strengthens its profit margins and enhances customer loyalty.

    Furniture financing

    Big Lots Inc offers furniture financing options to its customers, which also contributes to its revenue stream. By partnering with financial institutions, Big Lots provides customers with the opportunity to purchase furniture and pay for it in installments. This financing option makes furniture more accessible to a broader customer base, thereby driving sales and generating additional revenue for the company.

    Leasing excess store space

    To maximize its revenue potential, Big Lots Inc leases excess store space to other businesses. This strategy allows them to monetize the unused areas within their stores. For example, they may lease space to third-party vendors, such as cell phone providers or local businesses, who pay rent to operate within Big Lots stores. By utilizing this approach, Big Lots can generate income without significantly impacting its core retail operations.

    E-commerce sales

    Big Lots Inc has also embraced e-commerce as a means of generating revenue. Through their website and mobile app, customers can browse and purchase products online, which are then delivered to their doorstep. This online presence enables Big Lots to reach a wider audience and cater to customers who prefer the convenience of shopping from home. E-commerce sales provide an additional revenue stream for the company and contribute to its overall growth.

    In conclusion, Big Lots Inc generates revenue primarily through retail sales, including the sale of private label brands. They also offer furniture financing options, lease excess store space, and have an e-commerce platform. These various revenue streams contribute to the company's financial success and allow them to provide affordable merchandise to their customers.

    Big Lots Inc Business Model Canvas Explained

    Introduction

    The business model canvas is a strategic management tool that provides a comprehensive overview of a company's key components. In this section, we will explore the business model canvas of Big Lots Inc, a well-known American retail company.

    Key Partnerships

    Big Lots Inc has established strategic partnerships with various suppliers, manufacturers, and distributors. These partnerships enable the company to offer a wide range of products at affordable prices. By collaborating with trusted partners, Big Lots Inc can maintain a diverse inventory and attract a loyal customer base.

    Key Activities

    The key activities of Big Lots Inc revolve around sourcing products, managing inventory, and operating its retail stores. The company actively engages in market research to identify consumer trends and demands. This information is used to curate the product assortment and negotiate favorable deals with suppliers. Additionally, Big Lots Inc invests in effective inventory management systems to ensure optimal stock levels and minimize wastage.

    Key Resources

    Big Lots Inc relies on several key resources to support its operations. These include its extensive network of retail stores, distribution centers, and warehouses. The company also heavily relies on its workforce, comprising employees who are knowledgeable about the products and provide excellent customer service. Furthermore, Big Lots Inc leverages technology and data analytics tools to enhance its decision-making processes and gain a competitive edge.

    Value Proposition

    The value proposition of Big Lots Inc centers around providing customers with quality products at discounted prices. The company aims to offer a wide selection of items across various categories, including furniture, home decor, electronics, and more. By offering significant savings compared to traditional retailers, Big Lots Inc appeals to value-conscious consumers who are looking for affordable options without compromising on quality.

    Customer Segments

    Big Lots Inc primarily targets price-sensitive customers who are seeking discounted products. These include budget-conscious individuals, families, and bargain hunters. The company also caters to small businesses and organizations that require bulk purchases at lower costs. By understanding the needs and preferences of its customer segments, Big Lots Inc can tailor its product offerings and marketing strategies accordingly.

    Channels

    Big Lots Inc utilizes a multi-channel approach to reach its customers. The company operates a vast network of brick-and-mortar retail stores, allowing customers to physically browse and purchase products. In addition, Big Lots Inc has an online presence, enabling customers to shop conveniently from anywhere. The company also engages in targeted marketing campaigns, advertising its value proposition through various channels such as television, radio, and digital platforms.

    Customer Relationships

    Big Lots Inc strives to build strong customer relationships by providing exceptional value and service. The company aims to create a positive shopping experience for its customers, offering assistance, product knowledge, and a hassle-free return policy. Big Lots Inc also utilizes customer feedback to improve its offerings and address any concerns promptly.

    Revenue Streams

    Big Lots Inc generates revenue primarily through the sale of its products. The company earns income by selling items at discounted prices, ensuring high turnover and attracting a large customer base. Additionally, Big Lots Inc offers extended warranties, financing options, and other value-added services that contribute to its overall revenue.

    Conclusion

    The business model canvas of Big Lots Inc showcases a customer-centric approach that emphasizes affordability and value. By leveraging strategic partnerships, operational efficiency, and targeted marketing, the company has established itself as a prominent player in the retail industry. Big Lots Inc continues to evolve and adapt its business model to meet the changing needs of its customers and remain competitive in the market.

    Which companies are the competitors of Big Lots Inc?

    Overview of Big Lots Inc.

    Before diving into the competitors of Big Lots Inc., let's first understand what this company is all about. Big Lots Inc. is an American retail company that specializes in offering a wide range of merchandise, including furniture, home décor, electronics, toys, and groceries. With over 1,400 stores across the United States, Big Lots Inc. aims to provide customers with quality products at discounted prices.

    Competitors of Big Lots Inc.

    While Big Lots Inc. has established itself as a prominent player in the retail industry, it faces competition from several other companies that operate in a similar space. These competitors are constantly vying for market share and customer attention. Here are some of the main competitors of Big Lots Inc.:

    1. Walmart Inc.

    Walmart Inc., the largest retail corporation in the world, poses a significant threat to Big Lots Inc. With its extensive range of products and competitive pricing, Walmart attracts a vast customer base. Walmart's massive scale allows it to negotiate better deals with suppliers, resulting in lower prices for customers. This fierce competition from Walmart often pushes Big Lots Inc. to continually refine its pricing strategy and product offerings.

    2. Target Corporation

    Target Corporation is another major competitor of Big Lots Inc. Known for its trendy products and stylish collaborations with designers, Target appeals to a different segment of customers compared to Big Lots Inc. However, both companies compete in terms of offering affordable merchandise. Target's strong brand presence and emphasis on customer experience make it a formidable competitor for Big Lots Inc.

    3. Dollar General Corporation

    Dollar General Corporation, a chain of discount stores, competes with Big Lots Inc. by offering everyday low prices on a wide array of products. With a network of over 17,000 stores across the United States, Dollar General focuses on serving rural and suburban communities. Its convenient locations and aggressive pricing strategy make it a direct competitor to Big Lots Inc., especially in areas where the two companies have store overlap.

    4. The TJX Companies Inc.

    The TJX Companies Inc., which operates popular brands like T.J.Maxx, Marshalls, and HomeGoods, competes with Big Lots Inc. by offering discounted name-brand products. TJX leverages its relationships with manufacturers and designers to provide customers with quality products at lower prices. Its constantly changing inventory and treasure hunt shopping experience differentiate it from Big Lots Inc., attracting a unique set of bargain-hunting customers.

    5. Amazon.com Inc.

    While primarily an online retailer, Amazon.com Inc. has disrupted the retail industry as a whole, affecting companies like Big Lots Inc. Amazon's vast selection, competitive prices, and convenient online shopping experience pose a significant challenge to brick-and-mortar retailers. To stay competitive, Big Lots Inc. has been expanding its online presence and enhancing its e-commerce capabilities.

    Conclusion

    In the highly competitive retail industry, Big Lots Inc. faces strong competition from companies like Walmart, Target, Dollar General, The TJX Companies, and Amazon.com. To thrive in this landscape, Big Lots Inc. must continue to innovate, refine its product offerings, and provide customers with compelling value propositions. By understanding its competitors and adapting to market dynamics, Big Lots Inc. can remain a relevant player in the retail space.

    Big Lots Inc SWOT Analysis

    Strengths

    • Established brand: Big Lots Inc is a well-known retail chain with a strong brand presence in the industry. This gives them a competitive advantage over smaller, lesser-known retailers.
    • Wide product assortment: The company offers a diverse range of products, including furniture, home decor, electronics, and groceries. This wide assortment attracts a broad customer base and increases the likelihood of repeat purchases.
    • Competitive pricing: Big Lots Inc is known for its discounted prices, making it an attractive option for budget-conscious consumers. This pricing strategy helps the company stand out from competitors and drive sales.
    • Strong customer loyalty: Big Lots Inc has a loyal customer base that appreciates the value and savings they offer. This loyalty is reinforced by their rewards program, which provides additional discounts and benefits to frequent shoppers.

    Weaknesses

    • Limited online presence: While Big Lots Inc has a website for customers to browse products, their online presence is not as developed as some of their competitors. This can put them at a disadvantage in the digital age where online shopping is increasingly popular.
    • Dependence on physical stores: The company relies heavily on its brick-and-mortar stores, which can be a weakness in an era where e-commerce is booming. This limits their ability to reach customers who prefer the convenience of online shopping.
    • Inconsistent store layout: Some customers have reported that store layouts can be cluttered and disorganized, making it difficult to find products. This inconsistency in store layout can lead to a less-than-ideal shopping experience and impact customer satisfaction.

    Opportunities

    • E-commerce expansion: Big Lots Inc has the opportunity to expand its online presence and invest in e-commerce capabilities. By improving their website and offering a seamless online shopping experience, they can tap into the growing number of consumers who prefer to shop online.
    • Partnerships and collaborations: The company can explore partnerships and collaborations with other retailers or brands to enhance their product offerings. For example, partnering with popular home decor brands can help attract new customers and increase sales.
    • International expansion: Big Lots Inc has the potential to expand its operations globally and enter new markets. This can provide a significant growth opportunity and diversify their revenue streams.

    Threats

    • Intense competition: The retail industry is highly competitive, with numerous players vying for customers' attention and dollars. Big Lots Inc faces competition from large retail chains as well as online retailers, which can impact market share and profitability.
    • Economic downturns: The company's performance is influenced by the overall state of the economy. During economic downturns, consumers may cut back on discretionary spending, which can impact Big Lots Inc's sales and financial performance.
    • Changing consumer preferences: Consumer preferences and shopping habits are continually evolving. If Big Lots Inc fails to adapt to these changes and meet the evolving needs of their target market, they risk losing customers to competitors who offer more relevant and innovative shopping experiences.

    Key Takeaways

    • Big Lots Inc is owned by various institutional investors and individual shareholders, with no single majority owner.
    • The mission statement of Big Lots Inc is to provide customers with quality merchandise at affordable prices, creating a unique and enjoyable shopping experience.
    • Big Lots Inc generates revenue through the sale of a wide range of products, including furniture, home decor, electronics, toys, and more, both in-store and online.
    • The Business Model Canvas of Big Lots Inc focuses on creating value for customers through cost-effective sourcing, efficient distribution, and strategic marketing.
    • Competitors of Big Lots Inc include discount retailers such as Dollar General, Walmart, Target, and Costco.
    • In terms of SWOT Analysis, Big Lots Inc strengths include a strong brand and wide product assortment, while weaknesses may include limited international presence. Opportunities lie in expanding online sales, while threats include intense competition and changing consumer preferences.

    Conclusion

    In conclusion, Big Lots Inc is a publicly traded company, which means it is owned by shareholders who hold its stock. Its mission statement focuses on providing customers with a wide range of high-quality merchandise at affordable prices. Big Lots Inc makes money through various revenue streams, including sales of merchandise, rental income from leased properties, and credit card services.

    Analyzing Big Lots Inc's business model canvas reveals a well-rounded approach to generating revenue and maintaining a competitive edge in the market. The company's key activities include sourcing and purchasing merchandise, managing store operations, and offering customer financing options. By focusing on cost-effective operations, efficient supply chain management, and strategic partnerships, Big Lots Inc maximizes its profitability.

    As for competitors, Big Lots Inc faces competition from various companies in the retail industry. Some of its main competitors include discount retailers like Walmart, Target, and Dollar General. These companies also offer a wide range of affordable merchandise, making the market highly competitive. However, Big Lots Inc differentiates itself by offering a unique assortment of closeout merchandise, overstocks, and seasonal products.

    Finally, conducting a SWOT analysis of Big Lots Inc highlights the company's strengths, weaknesses, opportunities, and threats. Its strengths lie in its wide product assortment, cost-effective operations, and strong brand presence. However, weaknesses such as limited international presence and dependence on third-party suppliers should be addressed. Opportunities for growth include expanding e-commerce operations and entering new markets. Threats include intense competition, changing consumer preferences, and economic downturns.

    Overall, Big Lots Inc's ownership structure, mission statement, revenue generation methods, business model canvas, competitors, and SWOT analysis all contribute to a holistic understanding of the company's position in the market. By leveraging its strengths, addressing weaknesses, and capitalizing on opportunities, Big Lots Inc can continue to thrive in the ever-evolving retail industry.

    FAQs

    How can I find a SWOT analysis on a company?

    There are several ways to find a SWOT analysis on a company:

    1. Company website: Start by visiting the official website of the company you are interested in. Some companies include their SWOT analysis in their annual reports, investor presentations, or corporate governance sections. Look for any strategic or financial reports that might contain this information.

    2. Business databases: Utilize business databases such as Bloomberg, Hoovers, MarketLine Advantage, or Business Source Complete. These databases provide extensive company profiles and often include SWOT analysis.

    3. Google search: Perform a Google search by typing "[Company Name] SWOT analysis" in the search bar. This can help you find articles, reports, or blog posts that provide SWOT analysis on the specific company.

    4. Professional publications: Check industry-specific publications, magazines, or journals that may have published SWOT analysis on the company you are interested in. Examples include Forbes, Fortune, Harvard Business Review, or industry-specific publications like Automotive News or TechCrunch.

    5. Social media and news platforms: Follow the company's official social media accounts or search for mentions of the company on platforms like Twitter, LinkedIn, or Facebook. Sometimes, industry experts or analysts may share their SWOT analysis or opinions on these platforms.

    6. Academic sources: University libraries often provide access to academic research databases that can contain SWOT analysis on various companies. Access these databases by being a student or visiting a library that provides public access.

    Remember that while SWOT analysis can be useful, it is often subjective and may vary depending on the source. It's recommended to consult multiple sources to get a comprehensive understanding of a company's strengths, weaknesses, opportunities, and threats.

    What is a SWOT analysis for a store?

    A SWOT analysis for a store is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats associated with the store's operations. It helps to identify internal and external factors that may impact the store's performance and guides decision-making processes. Here is an explanation of each component of a SWOT analysis for a store:

    1. Strengths: These are the internal factors that give the store a competitive advantage over its competitors. It could include factors such as a strong brand reputation, a wide product range, excellent customer service, loyal customer base, efficient supply chain, or exclusive partnerships.

    2. Weaknesses: These are internal factors that put the store at a disadvantage compared to its competitors. This could include aspects like outdated technology, limited product selection, poor location, insufficient marketing efforts, lack of trained staff, or inconsistent product quality.

    3. Opportunities: These are external factors that the store can take advantage of to grow and improve its performance. Opportunities could arise from market trends, changes in consumer preferences, new product or service offerings, emerging markets, partnerships or collaborations, or advancements in technology.

    4. Threats: These are external factors that pose potential risks or challenges to the store's success. Examples of threats could include intense competition, economic downturns, changing consumer behavior, increasing operating costs, legal or regulatory changes, or negative publicity.

    By conducting a SWOT analysis, store owners or managers gain a comprehensive understanding of their store's current position in the market and can develop strategies to capitalize on their strengths, address weaknesses, seize opportunities, and mitigate threats.

    What is big business SWOT analysis?

    Big business SWOT analysis is a strategic planning technique used by large corporations to assess their internal strengths and weaknesses, as well as the external opportunities and threats in the market. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

    Strengths: These are the positive attributes and capabilities of the company that give it a competitive advantage over its rivals. It could include factors such as strong brand recognition, superior technology, skilled workforce, and efficient supply chain management.

    Weaknesses: These are the internal factors that put the company at a disadvantage compared to its competitors. It could include factors such as outdated technology, high production costs, poor management, or lack of innovation.

    Opportunities: These are the external factors or market conditions that could potentially benefit the company and help it grow. It could include factors such as emerging markets, new customer segments, favorable regulatory changes, or technological advancements.

    Threats: These are the external factors or challenges that could negatively impact the company's performance and profitability. It could include factors such as intense competition, economic downturns, changing consumer preferences, or disruptive technologies.

    By conducting a SWOT analysis, big businesses can identify their strengths to leverage, weaknesses to improve, opportunities to pursue, and threats to mitigate. This analysis helps in formulating effective strategies and making informed decisions to maintain a competitive edge in the market.

    What will be your SWOT analysis for the company?

    Strengths:

    1. Strong brand recognition: The company has established itself as a well-known and trusted brand in the industry.
    2. Diverse product portfolio: It offers a wide range of products, catering to different customer segments and preferences.
    3. Strong distribution network: The company has a robust distribution network, ensuring its products reach a wide customer base efficiently.
    4. Innovation and technology: The company invests in research and development, leading to innovative products and competitive advantage.
    5. Strong financial position: It has a solid financial foundation, enabling strategic investments and expansion opportunities.

    Weaknesses:

    1. Dependence on a few key suppliers: The company may face supply chain disruptions if it heavily relies on a limited number of suppliers.
    2. High production costs: The cost of manufacturing and production may be relatively high, affecting the overall profitability.
    3. Limited online presence: The company may have limited online visibility, which can result in missed opportunities for online sales and marketing.

    Opportunities:

    1. Growing market demand: The market for the company's products is expanding, presenting opportunities for increased sales and market share.
    2. International expansion: Global markets offer potential for growth and increased revenue, as the company can tap into new customer bases.
    3. Increasing consumer awareness of sustainability: By emphasizing its commitment to sustainability, the company can attract environmentally conscious consumers.
    4. E-commerce growth: The rising popularity of e-commerce provides an opportunity for the company to enhance its online presence and drive sales.

    Threats:

    1. Intense competition: The industry is highly competitive, with numerous established and emerging competitors vying for market share.
    2. Economic downturn: A global recession or economic downturn can lead to reduced consumer spending and impact the company's sales.
    3. Changing consumer preferences: Evolving customer preferences and trends may require the company to adapt its product offerings to stay relevant.
    4. Regulatory challenges: Compliance with changing regulations and standards can pose challenges to the company's operations.
    5. Supply chain disruptions: Natural disasters, political unrest, or other unforeseen events can disrupt the supply chain, impacting production and delivery.

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