Published on 25 Nov 2021 on Zacks via Yahoo Finance
Retailers are making every possible effort to enrich customers’ shopping experience during the holiday season. To this end, renowned off-price retailer Big Lots, Inc. BIG unveiled a host of latest pay options and added various products online so that shoppers can benefit from the Cyber Week promotions. Customers can explore deals with up to 20% discount and those signing up for a "Big Rewards" membership can avail of an extra 15% off on a new member's first buy.The recently-introduced online payment options include paying with Apple Pay, Google Pay and PayPal. Shoppers can also choose to pay later for some purchases made online wherein they can make payments in four interest-free instalments using “PayPal Pay in 4”. Same-day and two-day deliveries coupled with curbside pickup options are all available. In addition, Big Lots is featuring shopping experiences, including part treasure hunt, part everyday necessities and special "Big Buys", comprising items in limited quantities at exceptional prices.We note that this holiday season, BIG raised the number of available products online by 40% and is on track to add more each week. Hence, the aforesaid initiatives, including flexible payment and fulfillment options, and an expanded array of items will attract several customers, plus boost Big Lots’ sales in turn.
Big Lots has been gaining from its transformation initiative called Operation North Star, which encompasses driving its top line, cost containment, and enhancement of systems and infrastructure. Also, BIG is on track with its pantry-optimization and store-expansion endeavors. With respect to store-related efforts, the Lot and Queue Line has been enhancing customers’ shopping experience for a while.Big Lots is leaving no stone unturned to tap the best in the market and this is quite clear from its efforts to leverage its marketing strategies with loyalty databases and e-commerce upgrade. BIG is experiencing strong e-commerce growth, buoyed by the success of the “Buy Online Pick-up In Store” functionality and curbside pickup.In addition, BIG’s same-day service at Instacart seems profitable. It integrated web and store capabilities to drive enhanced returns, pricing, consistency and order visibility. During the second quarter of fiscal 2021, e-commerce demand grew 10% year over year and soared more than 400% from the second-quarter fiscal 2019.Shares of this currently Zacks Rank #3 (Hold) Big Lots have gained 7.8% in the year-to-date period compared with the industry’s growth of 16%.
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