Big Lots Survey is an American based multinational Drug store providing discounts on a range of goods from furniture, home commodities to groceries. In their approach to target the lower end of the market, Big Lots has been able to cross the already difficult retail market.
Knowing who is Big Lots’ biggest competitor in the market is extremely important for those interested in this business. In this article, we will turn our focus to the competitive environment of Big Lots and describe its major competitors in more detail, such as their pricing policies, target audience, location, and what they do well and what they do not.
Who Is Big Lots’ Biggest Competitor In Market?
To begin with, we look at various key participants in the discount retail market to determine who is Big Lots’ biggest competitor. The following competitors have certain advantages that most likely classify them as dominant threats to Big Lots.
Dollar General
- Overview: At Dollar General, a wide array of items can be bought at very low prices, which is quite useful for people from low-income households living in small villages. The organization sells its products at discount rates.
- Comparison:
- Dollar General has over 18,000 stores, which is more than Big Lots has.
- While Big Lots offers a diversified home goods and furniture range, Dollar General focuses primarily on consumables, including food, cleaning products, and health items.
- Why it’s a Competitor: While Big Lots’ goal is to expand into underserved areas, so is Dollar General. As a result, both focus on the same price-conscious consumers.
Walmart
Overview: Walmart provides its customers with food and household items as well as electronics at the most affordable rates, which allows it to take the spot of the most effective dominating retailer for the consumers over the world. Therefore, Walmart has over… 10,000 stores across the globe, thus making it the biggest store chain in terms of number of outlets.
- Comparison:
- A huge array of products can be found in Walmart.
- While many of the products retailing at Big Lots may be bought at cheaper prices as a strategy to compete with Walmart retailing at higher prices, a marketing strategy adopted by Walmart decreases its retain prices and stock extensive varieties of goods compared to Big Lots.
- What makes it a Competitor: Cost Leadership is what allows walmart strong position in discount retailing to be a threat to Big Lots. With that being said Walmart is one of the biggest competitors of Big Lots.
Target
- Overview: Target is yet another retail giant competing with Big Lots. Target overlaps with Big Lots as it sells food, apparel as well as household goods. Target sells inexpensive stylish items which puts them in the same market with Big Lots.
- Comparison:
- Target’s pricing is generally higher for décor and fashion items, which contrasts with Big Lots’ more budget-friendly options.
- Big Lots focuses on bulk buying, while Target generally sells more curated, stylish items.
- What makes it a Competitor: By combining low prices with quality and stylish products, Target enters the affordable market and competes against Big Lots’ customer base. This makes Target one of Big Lots’ biggest competitors.
Costco
- Overview: Known as a bulk purchasing retailer, Costco is a strong competitor to Big Lots, though on a different scale.
- Comparison:
- Big Lots caters toward smaller purchases, whereas Costco offers bulk purchases, selling at reduced prices for larger quantities.
- Costco operates on a membership model, which restricts some buyers but pays off for those who shop regularly.
- Why It Is A Competitor: Despite the difference in business models, Costco’s focus on value through bulk purchases makes it a competitor to Big Lots in the discount market, answering the question, who is Big Lots’ biggest competitor?
Burlington Stores
- Overview: Burlington Stores, formerly known as Burlington Coat Factory, offers off-price clothing, shoes, baby goods, and home items. Like Big Lots, it provides discounted high-quality goods.
- Comparison:
- While Big Lots sells groceries, furniture, and clothes, Burlington focuses mainly on clothing and fabric for home use.
- Both companies target customers looking for discounted goods, but Burlington focuses more on apparel.
- Why It Is A Competitor: Burlington competes with Big Lots, especially in the clothing and home goods sectors, making it another contender in answering who is Big Lots’ biggest competitor?
Dollar General emerges as Who is Big Lots’ biggest competitor in the market, with its extensive store network, low prices, and strong appeal to budget-conscious shoppers.
Competitor Analysis : Who Is Big Lots’ Biggest Competitor?
To gain insights into the competitive market, let’s analyze the key factors that reveal who is Big Lots’ biggest competitor in this landscape.
Market Share
- Big Lots – Present in 62 jurisdictions, Big Lots has a total of 1400 locations.
- Dollar General – Dollar General has such a vast network of Stores that it puts them in a dominant position in the market.
- Walmart – Walmarts controls the largest share of the marketplace when one considers the purchase of goods, both in the physical stores and on the Internet.
- Target – Is one of the major players in the market with emphasis on mid-range goods.
- Costco – Not wholly owned but part owned by its members; Costco allows products to be sold at discounted prices when purchased in bulk.
- Burlington – Though its share of the market may be relatively small, Burlington has a firm footing in the clothing and the home goods market.
Pricing Strategies and Customer Base
- Big Lots: Targets family-oriented and mid to low income shoppers.
- Dollar General: Caters to under-privileged and rural as well as semi-urban population.
- Walmart: It has vast number of customers with special focus on value and access.
- Target: Targets stylish and cost conscious shoppers, primarily middle class.
- Costco: Best suited for cheap bulk consumers with high income levels.
- Burlington: Serves underprivileged and rural as well as semi-urban consumers.
The prime opponent of Big Lots differs with respect of the competition’s domain, as it has most skeletal competition with Dollar General, Walmart and Costco according to their market share, price-level and variety of products they offer.
Competitive Advantages and Disadvantages
An analysis of Big Lots together with its other key competitors enables an understanding of the competitive environment. This comparison sheds some light on Big Lots’ biggest threat and how does it compare with others.
Big Lots’ Strengths
- Value: Big Lots is known for providing great value for a variety of products.
- Bulk Goods: Big Lots offers some unique items, such as bulk food and furniture, which few competitors sell.
Strengths of Competitors
- Dollar General: A wide network and competitive pricing.
- Walmart: Offers unmatched variety and operates globally.
- Target: Strong brand recognition and a large customer base.
- Costco: Bulk purchasing model that offers great discounts.
- Burlington: Off-price model with branded products at low prices.
Looking into what makes a competitor exceptional or mediocre can assist in discerning who is the main threat to Big Lots while also providing important information for various managerial choices.
Marketing and Promotional Strategies
Big Lots uses traditional marketing tools like TV advertisements and flyers, but it can improve its online presence. Competitors like Walmart and Target employ more advanced digital marketing techniques. Understanding who is Big Lots’ biggest competitor in this area can help Big Lots enhance its visibility and reach.
Walmart invests in various spheres of e-commerce and online advertising, whereas Target’s strategy consists of emails and social media to retain customers.
All of these in comparison with Big Lots have a more developed case in e-commerce which is the areas that Big Lots can leverage on broadening its market and presence.
Financial Comparison Among Companies
In comparison to revenue giants like Walmart and Costco which earn a few hundred billion per year, Big Lots on the other hand has a slightly different approach and targets a different customer base.
Big Lots can be described as targeting a smaller customer base but has a greater customer retention due to their more modest principles.
Nonetheless, Big Lots can withstand such financial behemoths by focusing on a small customer segment. Their revenue range is not that high.
Customer Satisfaction and Customer Loyalty
Though Big Lots has an impressive appraisal for its pricing structure, the same cannot be said regarding shoppers’ contentment and the shopping experience itself.
On the other hand, competitors like Target or Costco show a lot of loyalty programs or Walmart compensates with plenty of products and price matching.
According to User’s analysis, Big Lots should work on improving location/s integrity by implementing more targeted discounts and handling better the experience in the store and online.
Conclusion
To sum up, the answer to the query ‘Who Is Big Lots’ Biggest Competitor’ has a multitude of potential responses.
Competition in Big Lots’ retail business includes Dollar General, Walmart, Target, Costco and Burlington. The company’s ability to quite easily fend off a hostile takeover is attributed to its low-cost infrastructure and wide variety of bulk sale merchandise, albeit the company has to remain vigilant of the competition around.
