Private label furniture, key clothing for the future of Big Lots
Focusing on its two-year earnings, Bruce Thorn, president and CEO of Big Lots, said on the financial appeal that the retailer faces a moment of transformation, and expects the company to grow by billions of dollars over the next two years.
Looking at the two-year lineups, Thorn said the quarter showed strong gains in furniture, apparel, seasonal and home goods – areas where he has strong private label business.
On Broyhill, he reported that in the third quarter of 2021, the exclusive furniture line generated $ 160 million in sales, almost half of its sales in 2020. The Real Living line also nearly doubled its sales in the third. quarter compared to the previous year. Thorn said the two are set to become billion dollar brands.
Broyhill, in particular, is supported by successful merchandising inside stores.
In clothing, following the launch of its Weekend Soul store brand from casual wear, which he says has landed with shoppers, the category is becoming “important,” generating $ 200 million in sales this year.
Thorn reported that food sales were down on average, mostly due to a reduction in square footage as part of its pantry optimization reset. Furniture as a whole saw a double-digit increase on a two-year stack basis in the third quarter and seasonal products led the way, increasing sales by 30% on a two-year basis. Thorn said he expects seasonal gains to be larger in the fourth quarter, after posting his best Thanksgiving and Black Friday sales in company history.