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Dive Brief:
- Big Lots closed a deal to buy the entire inventory of toy company Hearthsong, the discount retailer announced Thursday. The inventory is valued at over $22 million.
- Through the acquisition, Big Lots will acquire more than 500 new SKUs, including indoor and outdoor toys, inflatables, playscapes, games, children’s decor and other items, according to the announcement.
- The retailer will begin offering Hearthsong products starting in April and sell them from 50% to 70% off.
Dive Insight:
At the end of last year, Big Lots tapped Seth Marks for the newly created position of senior vice president of extreme value sourcing. The hire came as the retailer looked to expand the retailer’s “assortment of extreme bargains,” President and CEO Bruce Thorn said at the time.
Marks said in a statement that the company is “pleased” with the strategic acquisition of Hearthsong toys.
“We’re reclaiming our bargain heritage, and with this impressive acquisition from Hearthsong, our extreme value sourcing team of closeout buyers is delivering on our promise to own closeouts and bring dynamic, innovative products at unmatched prices to our customers,” Thorn said in a statement. “It also signals our very real commitment and unique ability to directly source the best deals for our customers in ways that keep them coming back to our stores to uncover bargains, treasures, and extreme values.”
Big Lots stated that its goal is to restore the company’s leadership position in off-price and closeout sourcing.
The addition of Hearthsong’s inventory comes during a challenging time for the company. During an earnings call last May, Big Lots disclosed that it closed four distribution centers and implemented store leasebacks to cut expenses. The retailer recently landed on Retail Dive’s bankruptcy watch list, wherein CreditRiskMonitor gave the off-price retailer a FRISK Score of 2, placing the company’s chance of filing for bankruptcy at 4% to 10%. In December, Big Lots reported a 14.7% drop in Q3 net sales to $1.03 billion, while comparable sales fell 13.2%.
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
