For many years, when people think of the biggest names in home improvement stores, they think of Home Depot and Lowe’s. These stores sell everything from tools to building materials to help people improve their homes or fix any problems. However, lately, these companies have been facing problems like supply delays and price hikes.
While this has been happening, there’s opportunity for other stores to try to gain a foothold in the market, and it could be one with a troubled history – Big Lots. This year, Big Lots has gained more and more traction, and is clawing its way back as a big shot.
How Home Depot And Lowe’s Became Big
Home Depot and Lowe’s are huge companies that grew rapidly due to their stores offering DIY supplies and services related to people fixing up their homes.
Home Depot has historically focused on professional builders, while up until recently, Lowe’s has targeted regular homeowners doing small projects. Both store chains have a lot of products to offer, but recently, their growth has slowed down due to areas being oversaturated with similar stores and the way people shop changing over time.
Recent Problems
Currently, both companies are facing complications. Their supply chains are facing difficulties, which means their products are sometimes unavailable. These issues stem from the COVID-19 pandemic, which has had effects on inventory shortages and delivery delays, which have frustrated customers. Inflation has forced prices across products to increase, which could push away budget-oriented customers.
Additionally, the demand for large home renovation project supplies has slowed down post-pandemic. A report from Lowe’s in 2024 showed a decline in revenue, reflecting the aforementioned pressures. Store layouts have also changed in order to reduce theft, but have altered the shopping experience for many who have grown accustomed to the previous store-layout.
Big Lots Business Model
Big Lots has around 500 stores around the United States. The stores’ model focuses on discounted general merchandise like furniture, seasonal items, and home goods. Big Lots has a broader and more versatile selection at their stores when compared to more specialized model that Home Depot and Lowe’s have. This means that Big Lots may have more resilience to economic downturns and a change in the way that customers like to shop. Although Big Lots has had their own difficulties in the past.
Big Lots’ Complicated History
Although Home Depot and Lowe’s have faced significant challenges in the past, Big Lots has not been immune to problems either. In 2024, Big Lots’ problems all piled up, and they had to file for bankruptcy. They planned to shut down their stores and sell everything off. However, like a phoenix rising from its ashes, Big Lots is reemerging in the current year after its widespread store closure.
The brand was acquired by Variety Wholesalers, which has a lot of experience in discount retail. Nine Big Lots stores have reopened across six states in April 2025, including North Carolina, Tennessee, and Virginia. This could mark the beginning of their comeback.
What Makes Big Lots’ Resilient
Inflation and economic downturns have made customers more aware of spending their money responsibly, meaning that they are more price-sensitive than ever before. This could lead to an attraction to discount retailes. Home projects could be delayed in favor for home goods.
Big Lots has a smaller and easy to navigate store with non-imposing price tags for smaller goods like everyday home essentials and discount furniture. Consumer priorities may be shifting, and they may just not have the money to spend on DIY home improvement like they used to.
Looking Ahead
With new stores reopening across several states, Big Lots has an opportunity to reshape its business model by focusing on a smaller, more efficient network of stores. With hundreds of stores already closed as part of their aforementioned bankruptcy, prioritizing reopening them would require substantial financial backing.
Concentrating resources on the most profitable sites could maximize profitability. In the future, Big Lots is expected to have between 200 and 400 stores nationwide rather than stretching its resources too thin. A leaner approach will let the company invest more into each store, creating a better space for the customer experience.
A Shift In Values
To make a proper comeback, Big Lots is changing what their stores sell and how they will sell. They are shifting their products to be more about essential day-to-day goods, such as groceries, home basics, and seasonal items. They won’t fully pivot away from tradition and should still offer the closeout bargains that have helped build up their reputation.
This quick adoption of customer feedback could help Big Lots compete with other retailers and survive and thrive, whereas others like Home Depot and Lowe’s are facing challenges. Big Lots’ “treasure hunt” atmosphere will be better organized while still keeping with the store tradition.
Digital Growth
To stay competitive and evolve with the customer shopping experience, Big Lots is investing in digital tools and online shopping. The company wants to introduce a better e-commerce platform and a click-and-collect system, making it easier for customers to shop from the comfort of their homes and then collect their items with minimal hassle.
This pick-up method will still keep foot traffic in the store relevant and blends strategies for a hybrid solution for modern-day shoppers. Big Lots should still keep their loyal customers while widening their reach for more people to access their storefront online and collect their products.
The Road To A Major Comeback
The road ahead may be challenging for many stores in the face of changing customer habits and economic implications, but Big Lots has a unique opportunity to reinvent its brand in 2025 and further. A streamlined store base and a better focus on essentials and value could carve out a strong niche in the discount retail market.
Their success is still up in the air, but there is potential for them to make a strong comeback if they stay nimble, listen to customer feedback, and make bold changes if needed.
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