Big Lots builds upon its success with closeout furniture - Home - Big Lot's furniture represents about 11% of its total sales - Brief Article - Statistical Data Included

DSN Retailing Today, August 12, 2002

In the 2002 first quarter, Big Lots posted sales of $904.1 million, a 16.9% gain, while comps advanced 11.7%. Net income reached $12.2 million, or 11 cents per share-beating First Call estimates-versus $300,000, or $0 per share, in last year's first quarter. In the 2002 quarter, average basket increased 6.6%, just the kind of gain Big Lots has looked to furniture to drive. Furniture items in Big Lots can retail at better than $1,000.

Melissa Coiner Williams, an analyst with Gerard, Klauer Mattison, said the first quarter indicated that efforts to build business have lately scored with consumers. "Rebranding, mix changes and new advertising seem to have improved customer perceptions and driven sales," she said.

As other mass market retailers develop their own furniture operations, they are applying a formula similar to the one Big Lots created, but Kidder insists on pride of place.

"We've been doing it longer than anyone else," he said. "Imitation is the best form of flattery."