Big Lots (NYSE: BIG), renowned as America’s Discount Home Store, has unveiled a strategic move to bolster its sourcing capabilities by establishing international buying offices in Shanghai, China, and Ho Chi Minh City, Vietnam. This initiative aims to fortify the company’s competitive edge in sourcing products, including closeout deals and extreme bargains, while delivering operational cost savings and enhancing assortment optimization.
The decision to open international buying offices represents a pivotal step in Big Lots’ strategy to streamline operations and maximize efficiency. By bringing its long-time, exclusive third-party agent’s sourcing team in-house and establishing dedicated offices in key strategic locations, the company anticipates significant cost savings, with the benefits expected to materialize in the fiscal year 2024.
The establishment of international buying offices not only signifies a shift towards greater operational control but also reinforces Big Lots’ sourcing platform. With a dedicated presence in Shanghai and Ho Chi Minh City, the company aims to leverage proximity to manufacturing facilities and vendor partners in Asia to enhance procurement capabilities and optimize assortment offerings. This strategic move aligns with Big Lots’ overarching goal of reclaiming its bargain heritage and delivering exceptional value to customers.
Under the leadership of Kevin Kuehl, Senior Vice President, and General Merchandising Manager, Big Lots’ international buying offices will serve as hubs for strategic sourcing activities. Situated strategically near major manufacturing hubs, the offices will facilitate closer collaboration with vendor partners and enable efficient procurement across critical categories such as furniture, seasonal items, and soft home goods.
Following the announcement, Big Lots’ stock witnessed a slight decline, currently trading at $4.145. This fluctuation reflects market sentiment amidst the unveiling of the company’s strategic expansion into global sourcing. Despite the short-term market reaction, Big Lots remains committed to its long-term vision of driving value creation and operational excellence.
As Big Lots forges ahead with its global sourcing initiative, the company remains optimistic about the prospects of delivering enhanced value propositions to its customers. By leveraging its expanded sourcing network and optimizing assortment offerings, Big Lots aims to reinforce its position as a leading provider of extreme bargains and everyday great values in the retail landscape.
Big Lots’ establishment of international buying offices underscores its commitment to driving innovation and operational efficiency in an increasingly competitive retail environment. With a focus on global sourcing, the company is well-positioned to capitalize on emerging market opportunities and deliver unparalleled value to customers worldwide.
