On December 20, 2024, it was reported, top 100 retailer Big Lots will lay off up to 555 corporate employees in Ohio according to a WARN notice posted Dec. 19. Among the posts included in the layoffs is the president and CEO position held by Bruce Thorn. It's the latest step in the Columbus, Ohio-based discounter's ongoing bankruptcy case. On Dec. 19, it was revealed that its acquisition agreement with Nexus Capital Management appeared unlikely to be completed, and it was beginning going-out-of-business sales at its remaining stores while it works to find replacement deals. The notice, filed with the Ohio Department of Job & Family Services, says the mass layoffs at the corporate headquarters located at 4900 East Dublin Granville Road in Columbus are expected to commence the week of Dec. 29 and are expected to be completed by April 2025. In addition to the president/CEO job, positions included in the layoffs are three executive vice presidents, eight senior vice presidents, 27 vice presidents, and multiple managers and directors. On December 19, 2024, it was reported, top 100 retailer Big Lots announced on Dec. 19 that it does not anticipate completing its previously announced asset purchase agreement with Nexus Capital Management. However, it continues to work toward completing an alternative going-concern transaction with Nexus or another party. The Columbus, Ohio-based discounter's goal would be to complete a sale by early January. In parallel with these efforts, Big Lots is preparing to commence going out of business sales at all remaining Big Lots store locations in the coming days to protect the value of its estate. The company believes that the going out of business sales will not preclude it from effectuating a going-concern transaction. "We all have worked extremely hard and have taken every step to complete a going-concern sale," said Bruce Thorn, president and CEO in a statement. "While we remain hopeful that we can close an alternative going-concern transaction, in order to protect the value of the Big Lots estate, we have made the difficult decision to begin the GOB process." On Sept. 9, Big Lots filed for Chapter 11 protection, citing estimated assets of $1,000,000,001 to $10 billion against estimated liabilities of $1,000,000,001 to $10 billion to an estimated 5,001 to 10,000 creditors. That same day, it announced a sales agreement with affiliates of Nexus, subject to higher and better bids, as part of a court-supervised auction process. Nexus, designated as the stalking horse bidder for the auction, agreed to acquire the company's assets and ongoing business operations. The agreed-to purchase price consisted of $2.5 million in cash plus the debt payoff amount and the assumption of certain liabilities.
On December 19, 2024, it was reported, spot ocean container rates increased 8% overall this week, ending the slow decline seen for several months. Rates increased to an average of $3,803 per 40-foot container across all routes, per rate tracker Drewry. But both key U.S. routes soared higher. Rates from Shanghai to Los Angeles surged 26%, or $917, to $4,499. Shanghai to New York saw a 17% surge, rising $875 to just over $6,000. Drewry expects rates to increase again next week, particularly to the West Coast. It attributes the increase to front-loading ahead of the looming East Coast port strike in January and the anticipated tariff hikes under the incoming Trump Administration. Last week, Rachel Shames, vice president of procurement for customs broker CV International, broke down the issues: "January is likely to bring a variety of new challenges, beginning with a potential ILA labor strike that would close all U.S. East and Gulf Coast ports once again," she said. "There have been no positive labor negotiation developments in recent weeks, and it appears the ILA is preparing for a work stoppage effective Jan. 15. There is no clear indication of how long a labor strike would last, as it depends on further negotiations, potential presidential action, etc., but many believe the duration could be longer than the three-day strike in October." Then there are tariffs. "January 20 will bring the U.S. presidential inauguration, and more uncertainty around tariffs on major U.S. trading partners, as well as potential retaliatory tariffs on U.S. exports."
On November 19, 2024, it was reported, Consolidated delivered sales of $521 million Up 2% versus prior year Retail segment sales increased 3% Led by independent La-Z-Boy Furniture Galleries acquisitions, new stores, and record Labor Day sales results GAAP and Non-GAAP(1) diluted EPS of $0.71 Delivered sales and Non-GAAP(1) operating margin ahead of guidance Company-owned La-Z-Boy Furniture Galleries network grew by five stores, with three new stores, two newly acquired independent La-Z-Boy Furniture Galleries stores, and an additional two-store acquisition signed and expected to close in the third quarter Quarterly dividend increased to $0.22, 10% higher than the previous dividend
On November 19, 2024, it was reported, Walmart's third quarter consolidated revenue rose 5.5% from a year ago to $169.6 billion, the retailer said Tuesday. Global operating income rose 8.2% to $6.7 billion, up from $6.2 billion year over year. Net sales in the U.S. rose 5% to $114.9 billion, up year over year from $109.4 billion. U.S. comparable sales also rose 5.3%, excluding fuel sales. E-commerce sales rose 27% globally and 22% in the U.S., led in part by store-fulfilled pickup and delivery and the company's marketplace. Consolidated operating income grew 8.2% to $500 million on higher gross margins, growth in membership income and reduced losses in e-commerce. The company raised its full-year guidance and now expects net sales to increase 4.8% to 5.1%, up from a prior forecast of a 3.75% to 4.75% uptick. This was clearly a strong quarter and the changes we've been working on for years are continuing to bear fruit, McMillion said. According to Rainey, the popularity of expedited delivery has resulted in more than 30% of customer orders coming from people who elected to pay a convenience fee to receive their delivery in less than three hours or even less than one hour. Walmart's U.S. marketplace grew 42% in Q3, Rainey said, and the company has now seen more than 30% growth for the last five quarters. The company said the number of sellers on the platform continues to grow by double digits and its marketplace SKU count has nearly reached 700 million items. Additionally, that general merchandise also performed better in Q3, delivering a low single digit gain in comparable sales, is another positive for the quarter, Neil Saunders, managing director of GlobalData, said in emailed comments.
