Why Is Big Lots So Cheap? (10 Reasons Why)

As the U.S. economy has been improving, the discount retailer is striving to make customers happy by offering them more choices for their products.

Though very low prices, these items are sold in bulk and have a large supply. Most people wonder why they’re so cheap. They have a wide variety of items and offer discounts on many items.

Why Is Big Lots So Cheap In 2022?

1. Big Lots Is a Liquidation Store

It’s an outlet store, meaning that they sell cheap items that they no longer need and are selling at a discounted price to clear out their inventory.

They make a profit on inventory that they buy back from other companies at big discounts and resell to consumers at an affordable price.

The other companies are facing great difficulties and need a quick sale in order to survive.

Another instance of selling inventories is when companies need funds very urgently.

They take advantage of this situation to purchase products on clearance for less money.

This way, the company can sell their products at cheaper prices, and also lower the price of the company’s products.

2. Big Lots Is America’s Largest Closeout Store

Big Lots is a liquidation store, which leads to more customers and a strong brand name.

So, the store is currently recognized as America’s largest closeout store.
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Because of the high demand, Big Lots has managed to maintain a flow of suppliers and customer loyalty and trust.

Big Lots makes it easier for customers to have a budget-friendly shopping store and keep an eye out for bargains.

But, over the years, the company has faced challenges, including a few financial downturns.

It was difficult to predict the market dynamics at the beginning of the new year. As a result, it is easy to understand the low prices at Big Lots.

3. Some Groceries May Be Near Expiration Date

Since the store often buys items from other stores, some items might be near their expiration date, which is why they are at a higher price.

The grocery stores in the United States compete for customers by selling groceries at prices that are consistently below their competitors’ prices in order to attract the customers.

Saltines go for $2 at Big Lots, compared to $2.99 at Giant and $2.56 at Walmart.

You can buy 12.5 ounces of Honey Nut Chex cereal, which is only $2.80 at Big Lots and sell it at Walmart or Giant for $3.98 for the same amount.

The low pricing of products in the grocery section is part of the plan to lure customers to purchase the products before they reach their expiry date.

4. Big Lots Purchases Items in Bulk

Big Lots is a type of retail business that consists of a chain of discount stores. The company is based in the United States and was listed on the New York Stock Exchange.

When Big Lots buys items in bulk, it can save time and costs because it purchases a greater number of items in a shorter amount of time.

Big Lots’ strategy of saving money by purchasing in large quantities has made the company a success.

Stocking up and buying items in wholesale also helps to ensure customer demands on certain products by avoiding the risk of running out.

This maintenance of cash flow and pricing strategy lets the company stay competitive in the market.

5. Big Lots Has Strong Omni-Channel Initiatives

As a department store, Big Lots successfully implements strong Omni channel initiatives by lowering its inventory cost.

The company wants to make use of its marketing strategies with the help of e-commerce enhancement, the loyalty database and appealing to more customers in the long run.

As omnichannel experiences are enriched, the company expands its customer base, maintains all initial practices in order to keep prices low.

6. Big Lots Maintain No Frills in the Store

The Big Lots cost-leadership strategy makes it a target for many competitors. It is important to the company that it keep costs low to keep costs low.

There is only one person for every one square foot of retail. (The amount of retail space is typically measured in square feet.)
This has the effect of giving each worker a much higher ratio of merchandise to salesperson.

This leads to the fact that Big Lots makes sure that there is no space for customers to go inside the store. So, they make it as simple as possible for the customers to buy items.

7. Big Lots Has an Efficient Supply Chain System

Big Lots continued its successful strategies even with the current disruptions in the retail industry.

The company has strong control over its supply chain and delivery processes to ensure that the store will be operating even when the market is bad.

While the Company may not have a history of supplying their employees’ families with food, The Company does provide benefits to the families of their employees. In fact, the Company offers employees a number of benefits ranging from health care to retirement savings plans.

The company always has enough supply to meet the demand, and no fluctuations of demand affect production.

8. Big Lots Offers Promotions Through the Big! Rewards Programs

The Big Lots helps customers save by offering discounts, loyalty rewards and sales events via the Big! Rewards program.

The company’s Big Rewards program is designed to reward customers for saving more, and in the long run, promote customer loyalty and retention.

Big Lots will start offering a program through which customers can get discounts on their purchases. Big Lots will start offering a program through which customers can get discounts on their purchases.

The customers will receive loyalty points and other benefits when they shop from the store such as discounts and rewards.

9. Big Lots Reduces Losses by Closing Under-Performing Stores

Among the reasons why Big Lots operates the most stores despite the low profit margin on its products is that the company takes advantage of economies of scale by purchasing merchandise in bulk and retailing it at wholesale prices.

In the past, Big Lots has closed stores with the US retail market and, in return, opened up more stores in more locations with the hope of expanding the business.

In 2014, the company decided to focus more on the United States market and close its Canadian operations.

As a result of these strategies, the company has managed to avoid the extreme effects of company losses. Hence, it has been able to manage to maintain low prices.

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10. Big Lots Operates Effective Marketing Strategies

Big Lots has a marketing strategy to investigate the needs of customers, then deliver them, effectively!

Big Lots sells products at the lowest possible prices. It attracts more customers through these campaigns and offers products in the stores.

It also helps you to know that if you are thinking about shopping there, you could also checkout some of the other stores out in the mall but I do not recommend it. There is a discount store that is part of the mall called TJX and it is more of a retail store than Big Lots.


Big Lots’ products are cheap because they aim to have low costs and low expenditures.

Big Lots is a liquidation store which achieved this by using its stocking structure.

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I have always been a shopaholic. A lot of times my questions went unanswered when it came to retail questions, so I started Talk Radio News. - Caitlyn Johnson

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