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- Big Lots sales in the most recent quarter were down nearly 10% from the same time in the prior year.
- I visited a Rochester, New York, location to try to see why.
- I found a confusing, disorganized store with no clear brand to draw in customers.
I visited a Big Lots store in Rochester, New York, to try to get a sense of why the chain is suffering — with sales down 10% year over year — even as consumers are eager for deals and low prices.
The chain sells many things, and the corporate website describes "amazing values that other stores just can't match" on everything from "everyday consumables and housewares to toys and seasonal goods."
The location I visited had a few carts available, though I didn't see anyone using them.
When I stepped inside, I didn't have any more clarity about what kind of store this was.
A tailgating display near the entrance featured some folding chairs and blankets.
The store's setup was confusing and didn't seem to follow any particular logic.
Messily arranged boxes of clothes lined shelves behind the tailgate setup.
That same aisle also had some exercise equipment, which was on sale.
Half an aisle was dedicated to Baby Yoda merchandise, with blankets, stuffed toys, pillows, and other items.
The company's president and CEO, Bruce Thorn, said in a December earnings call that Big Lots had had success selling mugs, toys, and towels from the Disney pop-up section.
I was surprised at how much furniture for sale was set up inside, from beds to large sectionals to kitchen tables.
Thorn attributed double-digit declines in furniture sales in the most recent quarter to customers' delaying big purchases.
The chain is lowering prices on furniture and adding more in-store discounts to move furniture, which I saw in sale signs posted throughout the store.
Aside from a few beds and table sets, the furniture setup felt haphazard and unorganized.
Once I moved past the furniture, the store had more small, low-cost items.
Many of the end caps advertising sales were emptied.
Big Lots says these displays usually contain "unique, quirky, trendy, and seasonal items."
The back side of the store felt like several chains in one.
Aisles of wall decor, faux plants, and candles reminded me of HomeGoods or T.J. Maxx.
There was a surprisingly robust pet section, with toys, food, treats, and cat trees.
The food section was similar to what you might find at a dollar store.
It was limited to name brands with all kinds of pantry staples and baking supplies.
There was a huge selection of soda, too.
It's hard, while walking through the store, to tell what Big Lots wants to portray itself as and why shoppers should see it as a destination over other stores.
Big Lots says it saw success in the fourth quarter with "Grinch-branded apparel and accessory items, novelty family sleepwear, giant candy bars, ugly holiday sweaters, and leggings."
The store definitely reflected that confused, miscellaneous quality.
Other sections of the store were simply disorganized, making it difficult to tell what specific items cost or whether they were on clearance.
St. Patrick's Day items were half stocked and sitting on a cart in the middle of the store.
The clothing section was full to the point where it was almost impossible to look through and take items off the rack.
Toys are a big sector for Big Lots, and it was easy to see why.
The toy section was the easiest to navigate and find prices marked on items.
There was also a section of $5-and-under stocking stuffers near the register that I was tempted to buy from.
Big Lots kind of reminded me of Five Below in its mix of interesting novelties and moderate disorganization.
But at Five Below it's easy to justify an inexpensive purchase. Big Lots has many more items priced at $10, $25, and higher.
After visiting, I understand better why Big Lots isn't benefiting from more consumers looking for deals.
The chain has a huge range of items at comparatively low prices, but it's not clear why people should shop there over other stores.
Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.