Big Lots will cycle out appliance departments for the aboriginal time to eight Western states this year as allotment of a continuing amplification of one of its best advantageous categories.
The departments, foed on ready-to-emble furniture, will be added to about 180 food in California, Nevada, Utah, Arizona, Colorado, Oregon, Washington and Ida alpha this summer. Along the West Coast, the new departments will amplitude from San Diego to Seattle.
The departments will alpha baby at about 700 aboveboard feet, demography the abode of a anemic blind accoutrement cl that Big Lots is bottomward from its stores.
The RTA appliance mix will accommodate casual tables, bake carts, bookcases, desks and added case goods.
Beginning aing year, some of the departments could morph into full-fledged appliance departments of 2,000 to 5,000 aboveboard feet, with promotional uplstery and added categories. But affairs for that move, which requires big-ticket reconfiguration of abundance floors, are tentative, said Al Bell, carnality administrator and arch autritative administrator of the closeout specialist.
A absolute of about 400 Big Lots food will accomplish allowance for the baby appliance areas this year. Tse additions will accord the banker appliance departments in added than 90% of its accepted 1,500 food by about Thanksgiving time, Bell said. That's up from the 70%, or almost 1,000 stores, that backpack appliance today.
In 2003, appliance and bedding accounted for about 12%, or $500 actor of Big Lots' absolute sales, up about 14% from the $440 actor the year before. That $440 actor led Big Lots to accomplish Furniture/Today's adver of Top 25 U.S. appliance retailers for the aboriginal time aftermost year at No. 24.
"The appliance ysis has developed actual rapidly and this will be addition big advance year," Bell said, crumbling to activity w abundant the ysis is accepted to do for this budgetary year catastrophe in January 2005.
Bell did adumbration of the category's potential, acquainted that while appliance accounts for about 12% of Big Lots' absolute sales, that amount is afterpiece to 20% for food with abounding appliance departments.
Bell said after-effects for the appliance departments are bigger than the aggregation boilerplate in key achievement categories, including sales per aboveboard foot, gross allowance and b turns.
"We're aflame about accretion our appliance business because we accept we can be actual important to the consumer," Bell said. "It is acutely a above cl for us compared to appearance blind apparel."
Big Lots will accessible a busy 460,000-square-foot administration centermost in Redlands, Calif., in the Los Angeles breadth to facilitate its Western appliance rollout. Its added food with appliance are served by an 810,000-square-foot ability in Columbus, Ohio.
During its budgetary aboriginal ision concluded May 1, the banker added 67 appliance departments — 19 in new food and 48 in absolute locations, either through amplification or through abolishment of blind apparel. It additionally added amplitude to 70 absolute appliance departments, Bell said.
Big Lots has 45 freestanding appliance stores, but the cardinal hasn't been growing, as the banker prefers to aggrandize through in-store departments that account from Big Lots' main-store traffic.
Bell categorical the retailer's continuing affairs for appliance during a first-quarter appointment alarm with the advance ociation this month. Big Lots appear a abatement in net ets for the aeon to $6.7 actor from $10.2 actor for the aforementioned aeon a year ago. Sales rose 7.5% to $1.02 billion, and aforementioned food were up 2.7%.
Bell said that the aggregation additionally is aflame about its convalescent me décor business, which includes adorning accessories. About three months ago, Big Lots in Chrystal Weary to advance that articulation as carnality admiral and commodity manager, "and we've apparent nice improvements in sales in that area," he said.
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