Business Analysis of Big Lots

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Big Lots

BIG LOTS

Business Overview

Big Lots, Inc., through its subsidiaries, operates as a non-traditional, discount retailer in the United States. The company offers products under various merchandising categories, such as food category that includes beverage and grocery, candy and snacks, and specialty foods departments; consumables category, which comprises health and beauty, plastics, paper, chemical, and pet departments; soft home category that consists of home decor, frames, fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments; hard home category, including small appliances, table top, food preparation, stationery, greeting cards, and home maintenance departments; and furniture category consisting of upholstery, mattress, ready-to-assemble, and case goods departments. It also provides merchandise under the seasonal category that includes lawn and garden, summer, Christmas, and other holiday departments; and electronics, toys, and accessories category, including electronics, jewelry, hosiery, toys, and infant accessories departments. As of January 28, 2017, it operated 1,432 stores in 47 states. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio.

Big Lots

Big Lots


R&P Rank: 498
Sector: Retail
Industry:Broadline Retail
H.Q Location:Ohio
Website: www.biglots.com
Company Address:
300 PHILLIPI ROAD, P.O.BOX 28512, COLUMBUS OH 43228-0512
Ph:614-278-6800

Business Analysis of Big Lots

The Retail Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Big Lots compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Big Lots to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Big Lots with an interactive chart.

  1. Revenue Growth: Big Lots reported a revenue growth of 0.3% year-on-year during 2016. Broadline Retail Industry grew at 0.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Big Lots spent 60.2% of its total revenues on COGS. Broadline Retail industry average (COGS share of revenue) in the same period was 74.8%
  3. R&D share of Revenues: Big Lots R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Big Lots spent 32.9% of its total revenues on Sales, Marketing, and General Administration (SG&A). Broadline Retail industry average SG&A spending in the same period was 19.8%
  5. Inventory share of Revenues: As a percentage of revenue, Big Lots spent 16.4% of its total revenues on Inventories. Broadline Retail industry average Inventory spending in the same period was 11.0%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Big Lots invested 7.4% of its total revenues on Accounts Payable (A/P) Broadline Retail industry average Accounts Payable investment in the same period was 8.5%
  7. Accounts Receivable share of Revenues: Big Lots Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
  8. PP&E share of Revenues: As a percentage of revenue, Big Lots invested 10.8% of its total revenues on Property, Plants, and Equipments (PP&E). Broadline Retail industry average PPE investment in the same period was 23.2%
  9. Intangibles share of Revenues: Big Lots Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Big Lots Net Margins in the year 2016 were 2.8%. Broadline Retail industry average Net Margins in the same period were 2.7%

Sector and Industry Association of Big Lots

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Big Lots is associated with Retail Sector and Broadline Retail Industry.

Retail sector is comprised of the following industries: Broadline Retail; Grocery Retail; Specialty Retail; Apparel Retail; Home Improvement Retail; Specialized Consumer Services. The definitions for each of the industries is as follows:

  • Broadline Retail industry includes retail outlets and wholesalers offering a wide variety of products including both hard goods and soft goods.
  • Grocery Retail industry includes retail stores that primarily offer non-perishable food that is packaged in cans, bottles and boxes, with some also having fresh produce, butchers, delis, and bakeries
  • Specialty Retail industry includes retailers and wholesalers concentrating on a Single Class of Goods, such as electronics, books, automotive parts or closeouts. It also includes automobile dealerships, video rental stores, dollar stores, duty-free shops and automotive fuel stations not owned by oil companies.
  • Apparel Retail industry consists of retailers and wholesalers specializing mainly in Clothing, Shoes, Jewelry, Sunglasses and Other accessories.
  • Home Improvement Retail industry includes retailers and wholesalers concentrating on the sale of home improvement products, including Garden Equipment, Carpets, Wallpaper, Paint, Home Furniture, Blinds and Curtains, and Building materials.
  • Specialized Consumer Services industry includes providers of consumer services such as Auction Houses, Day-care Centers, Dry Cleaners, Schools, Consumer Rental Companies, Veterinary Clinics, Hair Salons and providers of Funeral, Lawn-maintenance, Consumer-storage, Heating and Cooling installation and Plumbing services.

Industry Ranking of Big Lots

With $5.2 billion revenues, Big Lots ranked number 12 of all the companies in the US Broadline Retail industry. There were a total of 21 public companies in the US Broadline Retail industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Broadline Retail industry by revenues during 2016 were:

  1. Walmart ($482.1 billion)
  2. Costco ($118.7 billion)
  3. Target ($73.8 billion)
  4. Macy's ($27.1 billion)
  5. Sears Holdings ($25.1 billion)
  6. Dollar General ($20.4 billion)
  7. Kohl's ($19.2 billion)
  8. Dollar Tree ($15.5 billion)
  9. J. C. Penney ($12.6 billion)
  10. Dillard's ($6.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Big Lotsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of big-lots

J. C. Penney (JCP) Business Analysis – Analyze Historical Performance, Strategic...

J. C. Penney Co Inc with $13 billion revenues in the year 2016 was the number 9 Broadline Retail company. Read this report to know the top competitors of J. C. Penney and identify growth and cost optimization opportunities of J. C. Penney

Dillard’s (DDS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Dillard's Inc with $7 billion revenues in the year 2016 was the number 10 Broadline Retail company. Read this report to know the top competitors of Dillard's and identify growth and cost optimization opportunities of Dillard's

Essendant (ESND) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Essendant Inc with $5 billion revenues in the year 2016 was the number 11 Broadline Retail company. Read this report to know the top competitors of Essendant and identify growth and cost optimization opportunities of Essendant

Burlington Stores (BURL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Burlington Stores, Inc. with $5 billion revenues in the year 2016 was the number 13 Broadline Retail company. Read this report to know the top competitors of Burlington Stores and identify growth and cost optimization opportunities of Burlington Stores

Pitney Bowes (PBI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Pitney Bowes Inc with $3 billion revenues in the year 2016 was the number 14 Broadline Retail company. Read this report to know the top competitors of Pitney Bowes and identify growth and cost optimization opportunities of Pitney Bowes

PriceSmart (PSMT) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PriceSmart Inc with $3 billion revenues in the year 2016 was the number 15 Broadline Retail company. Read this report to know the top competitors of PriceSmart and identify growth and cost optimization opportunities of PriceSmart

Revenues Analysis

Big Lots (BIG) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Big Lots Inc (BIG) from 2012 to 2016. Big Lots generated a total of $5.2 billion revenues during 2016. Big Lots reported a revenue growth of 0.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Big Lots (BIG) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Big Lots Inc (BIG) from 2002 to 2016. Big Lots generated a total of $5.2 billion revenues during 2016. Big Lots reported a revenue growth of 0.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in January.

Big Lots (BIG) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Big Lots Inc (BIG) revenue growth with Broadline Retail industry growth during the last five years from 2012 to 2016. Big Lots reported a revenue growth of 0.3% year-over-year during 2016. The Broadline Retail industry growth was 0.3% year-over-year during 2016. Big Lots growth was slower than the industry during 2016.

Profit Analysis

Big Lots (BIG) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Big Lots Inc (BIG) from 2012 to 2016. Big Lots reported a total net income of $142.9 mi