Yahoo Finance Big Lots (BIG) Leverages Asian Buying Offices to Boost Sourcing
Big Lots, Inc. BIG, renowned for its discount home products, has unveiled a strategic move aimed at bolstering its global product sourcing capabilities. The company has inaugurated international buying offices in Shanghai, China and Ho Chi Minh City, Vietnam, signaling a significant shift in its procurement strategy.
This initiative marks a pivotal moment for Big Lots as it transitions from relying on third-party agents to establishing its sourcing team in Asia. The move is anticipated to deliver operational cost savings, beginning in fiscal year 2024, while empowering the company to optimize its product assortment and reclaim its legacy as a destination for bargain hunters. The new offices will strategically integrate the former exclusive third-party agent's sourcing associates.
Bruce K. Thorn, the president and CEO of Big Lots, emphasized the importance of global sourcing in delivering value to customers. He expressed optimism about the company's ability to introduce new and diverse products at compelling prices due to the establishment of Asian buying offices.
Under the leadership of Kevin Kuehl, senior vice president and general merchandising manager, the new offices will strategically position Big Lots' buyers near key manufacturing facilities and vendor partners across Asia. This proximity is expected to facilitate closer collaboration and more efficient procurement processes.
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Moreover, the expansion of Big Lots' sourcing network into developing markets in Central and South America, Africa and beyond underscores the company's commitment to diversifying its supply chain and accessing a broader range of products.
In conclusion, Big Lots' launch of Asia-based buying offices represents a strategic leap forward in its quest to offer customers unparalleled value and variety. By bringing sourcing operations in-house and expanding its global reach, the company is poised to cement its position as a leader in the discount retail sector, delivering exceptional bargains and everyday savings to consumers worldwide.
Stock Performance
Big Lots’ shares have experienced a significant decline of 44.5% over the past three months, in stark contrast to the industry’s 10.6% rise. Several factors have contributed to this downturn, including softening sales, underwhelming financial results, challenges in certain product categories and market volatility. Consequently, this Zacks Rank #4 (Sell) stock continues to face considerable pressure.
3 Stocks to Consider
Here, we have highlighted three better-ranked stocks, namely Burlington Stores, Inc. BURL, Abercrombie & Fitch ANF and American Eagle Outfitters, Inc. AEO.
Burlington Stores, a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories and merchandise, sports a Zacks Rank #1 (Strong Buy). BURL has a trailing four-quarter earnings surprise of 10.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Burlington Stores’ current financial-year sales and earnings suggests growth of about 10.2% and 22.3%, respectively, from the year-ago reported numbers.
Abercrombie & Fitch, an omnichannel specialty retailer of apparel and accessories for men, women and kids, sports a Zacks Rank #1. ANF has a trailing four-quarter earnings surprise of 715.6%, on average.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings suggests growth of about 5.6% and 19.1%, respectively, from the year-ago reported numbers.
American Eagle Outfitters, a specialty retailer that provides clothing, accessories and personal care products, currently sports a Zacks Rank #1. AEO delivered a trailing four-quarter earnings surprise of 22.7%, on average.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and earnings suggests growth of about 3.3% and 12.5%, respectively, from the year-ago reported numbers.
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