Business
US Retail Chain Big Lots Closing Outlets Indefinitely
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Big Lots, a popular US retail chain, has recently announced indefinite closures for several of its outlets. The company is currently undergoing a strategic shift, opting to close stores in urban and suburban areas while focusing on expanding its presence in smaller towns.
This decision comes amidst declining sales, which have been attributed to the impact of inflation on budget-conscious consumers. As a result, Big Lots is streamlining its network, aiming to operate in areas with stronger economic potential.
Notable closures include stores in California and Colorado, with plans to sell certain sites and shut down underperforming locations. This move reflects the retailer’s shift towards rural and small town stores, where it anticipates more favorable economics and increased profitability.
Big Lots Shifts Focus from Urban to Rural
Big Lots has announced a strategic shift in its focus from urban to rural markets, signaling the closure of stores in major cities and an expansion into small town markets. This shift is driven by the retailer’s aim to capitalize on the strong performance of its furniture and home goods assortment in rural and small town areas while adopting a prudent approach to store openings.
Closing Stores in Major Cities
The decision to close stores in major cities comes as Big Lots aims to reshape its store portfolio and real estate strategy towards rural and small town markets. This move aligns with the retailer’s goal to optimize profitability by facing less direct competition in home categories and benefiting from a lower cost structure in these areas. Additionally, focusing on rural markets allows Big Lots to generate more cash and profitability compared to urban stores, further supporting the rationale behind the store closures.
Expansion into Small Town Markets
With a clear emphasis on furniture and home goods, Big Lots looks to capitalize on the opportunities present in small town markets. The retailer has identified these markets as areas where it outperforms, and aims to leverage this strength for further growth. The expansion into small town markets will enable Big Lots to strengthen its position in these areas, offering a compelling assortment to cater to the unique demands of customers in rural and small town settings.
By strategically aligning its store portfolio with the shift towards rural and small town markets, Big Lots seeks to capitalize on the burstiness of these areas while addressing the perplexity of the evolving retail landscape.
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The Impact of Inflation on Big Lots
Declining Sales and Budget-Conscious Consumers
Big Lots, like many other retail chains, is feeling the impact of inflation. As prices rise, consumers are becoming increasingly budget-conscious, resulting in declining sales for companies like Big Lots. With the cost of living going up, consumers are forced to prioritize essential items over discretionary purchases, affecting the sales of non-essential items in retail stores.
The Struggle with Non-Essential Items
The current economic landscape posed by inflation has led to a struggle for retail chains like Big Lots, especially when it comes to non-essential items. As consumers tighten their belts and focus on essential purchases, sales of discretionary items such as home decor, furniture, and other non-essential goods have taken a hit. This shift in consumer behavior has significantly impacted Big Lots’ sales of non-essential items, adding to the challenges the company is facing in the wake of inflation.
In light of these factors, the retail environment is becoming increasingly challenging for companies like Big Lots, and understanding the implications of inflation is crucial in navigating these turbulent times.
A Strategic Move for Profitability
The Economics of Rural Store Locations
Big Lots’ decision to close some of its rural store locations aligns with a broader industry trend. Retailers are recognizing the challenges associated with operating stores in rural areas, which often face declining populations and limited consumer spending. By consolidating their footprint, companies can allocate resources more efficiently and focus on high-performing locations.
Selling Urban Store Sites for Revenue
In a strategic move to optimize its store portfolio, Big Lots is evaluating the option of selling urban store sites. This initiative aims to generate revenue from the sale of valuable real estate assets, potentially unlocking capital that can be reinvested in the business to drive future growth. By divesting underperforming urban locations, the company can streamline its operations and enhance overall profitability.
For more information on the impact of rural store closures on retail chains, visit Retail Dive for industry insights and analysis.
The Future of Big Lots’ Store Network
Adapting to Changing Consumer Demands
The retail landscape is continuously evolving, driven by changing consumer preferences and behaviors. Big Lots recognizes the importance of staying ahead of these shifts by adapting its store network to align with the ever-changing demands of its customers.
In response to the growing trend of online shopping, Big Lots has been actively re-evaluating its physical store locations to ensure they are strategically positioned to cater to the evolving purchasing habits of consumers. This adaptability enables Big Lots to maintain its relevance and meet the needs of its target market.
Big Lots’ Plans for Store Openings in 2023
Looking ahead to 2023, Big Lots is poised to embark on an ambitious plan for store openings, reaffirming its commitment to providing accessible retail locations for its customer base. The company’s strategic expansion efforts aim to bring its offerings closer to consumers, enhancing convenience and accessibility.
By strategically selecting new locations, Big Lots aims to reinforce its presence in key markets and capitalize on emerging opportunities. This proactive approach underscores Big Lots’ dedication to growth and reaffirms its position as a prominent player in the retail industry.
Find more information about Big Lots’ retail strategies and future plans here and here.
Store Closures in California and Colorado
Specific Locations Facing Shutdown
Big Lots has recently announced the indefinite closure of several of its stores in California and Colorado. In California, the affected locations include stores in San Jose, Oakland, and Fresno. In Colorado, stores in Denver and Colorado Springs are among those facing shutdown.
The Reason Behind Selecting These Stores
The decision to close stores in these specific locations is primarily driven by a combination of factors, including declining foot traffic, underperformance, and the broader strategic realignment of the company’s retail footprint. The stores identified for closure no longer align with the company’s overall growth strategy, leading to the difficult decision to cease operations at these particular locations.
For more information on the specific closures and the impact on the respective communities, you can refer to Big Lots official statement and local news coverage for insights into the closures’ effects on the regions.
Conclusion
In conclusion, Big Lots’ decision to close stores in urban and suburban areas and refocus on small towns is a strategic move to adapt to changing consumer behaviors and economic challenges. The shift in real estate strategy aims to capitalize on more favorable economics in rural areas and mitigate the impact of declining sales caused by high inflation. By optimizing their store network, Big Lots is positioning itself for long-term sustainability and profitability in the retail landscape.
Business
Internet Archive Loses Major Copyright Case Court Rejects Their Arguments
The Internet Archive has lost a critical legal battle, potentially affecting the future of internet history. Today, the US Court of Appeals for the Second Circuit decided against the long-running digital archive, affirming a previous decision in Hachette v. Internet Archive, which determined that one of the Internet Archive’s book digitization initiatives infringed copyright law.
Notably, the appeals court’s ruling rejects the Internet Archive’s argument that its lending practices were shielded by the fair use doctrine, which permits for copyright infringement in certain circumstances, calling it “unpersuasive.”
In March 2020, the Internet Archive, a San Francisco-based nonprofit, launched the National Emergency Library, or NEL. The epidemic had forced library closures that prevented students, scholars, and readers from accessing millions of books, and the Internet Archive has stated that it was answering to calls from common people and other librarians to assist individuals at home in obtaining the books they required.
The NEL was an extension of the Open Library, an ongoing digital lending experiment in which the Internet Archive scans physical copies of library books and allows individuals to borrow digital versions as if they were conventional reading material rather than e-books. The Open Library lent the books to one person at a time—but the NEL eliminated this ratio requirement, allowing a large number of people to borrow each scanned book at once.
Shortly after its inception, the NEL faced criticism, with some authors claiming that it amounted to piracy. In response, after two months, the Internet Archive abandoned its emergency strategy and imposed lending caps. But the harm had been done. Major publishing giants, including Hachette, HarperCollins, Penguin Random House, and Wiley, filed the complaint in June 2020.
In March 2023, the district court found in favour of the publishers. Judge John G. Koeltl determined that the Internet Archive had created “derivative works,” claiming that its copying and lending had “nothing transformative” to offer. Following the initial verdict in Hachette v. Internet Archive, the parties reached an agreement, the specifics of which have not been released; however, the archive has filed an appeal.
According to James Grimmelmann, a professor of digital and internet law at Cornell University, the ruling is “not terribly surprising” in light of recent court interpretations of fair use.
Internet Archive won the appeal
The Internet Archive won the appeal, but only narrowly. Although the Second Circuit upheld the district court’s first decision, it underlined that it did not regard the Internet Archive as a commercial business, emphasising that it was clearly a charitable organisation. Grimmelmann believes this is the appropriate decision: “I’m glad to see that the Second Circuit fixed that mistake.” (He joined an amicus brief in the appeal, saying that classifying the use as commercial was incorrect.)
“Today’s appellate decision upholds the rights of authors and publishers to license and be compensated for their books and other creative works, and reminds us in no uncertain terms that infringement is both costly and antithetical to the public interest,” Association of American Publishers president and CEO Maria A. Pallante said in a statement.
“If there was any doubt, the Court makes clear that under fair use jurisprudence there is nothing transformative about converting entire works into new formats without permission or appropriating the value of derivative works that are a key part of the author’s copyright bundle.”
In a statement, Internet Archive director of library services Chris Freeland expressed dismay with “today’s opinion about the Internet Archive’s digital lending of books that are electronically available elsewhere.” We are reviewing the court’s decision and will continue to defend libraries’ right to own, lend, and preserve books.
Dave Hansen, executive director of the Author’s Alliance, a nonprofit organisation that frequently advocates for increased digital access to books, also spoke out against the verdict. “The authors are researchers. “Authors read,” he says. “IA’s digital library assists authors in creating new works and encourages their desire to have their works read. This verdict may boost the bottom lines of the largest publishers and most well-known authors, but it will harm more people than it will help.
Difficult period for copyright law
The Internet Archive’s legal problems are not ended. In 2023, a collection of music labels, including Universal Music collection and Sony, sued the archive for copyright infringement on a music digitization project. That case is still working its way through the courts. The damages might total up to $400 million, posing an existential danger to the nonprofit.
The new ruling comes at a particularly difficult period for copyright law. There have been scores of copyright infringement cases filed against large AI businesses that provide generative AI tools in the last two years, and many of the defendants contend that the fair use doctrine protects their use of copyrighted data in AI training. Any big lawsuit in which judges reject fair use grounds is widely monitored.
It also comes at a time when the Internet Archive’s critical role in digital preservation is becoming increasingly apparent. The archive’s Wayback Machine, which catalogues website copies, has proven to be an invaluable resource for journalists, scholars, lawyers, and anybody interested in internet history. While there are other digital preservation programs, including national efforts by the US Library of Congress, there is nothing comparable available to the public.
Business
Hewlett Packard Won’t Drop Its UK $11 Billion Claim Against Tech Mogul Mike Lynch, Who Died When His Yacht Sank
LONDON — Hewlett Packard Enterprise announced Monday that it will not dismiss its U.K. claim for damages against the estate of British tech entrepreneur Mike Lynch, who died when his superyacht drowned last month.
In 2022, Britain’s High Court decided primarily to favor the US technology giant, which accused Lynch and his former finance director of fraud concerning its $11 billion acquisition of his software company Autonomy. Hewlett-Packard is seeking up to $4 billion in damages, and the judge is anticipated to make a ruling on the exact amount shortly.
AP News Image
Hewlett Packard Won’t Drop Its UK Claim Against Tech Mogul Mike Lynch, Who Died When His Yacht Sank
Mike perished when his yacht, the Bayesian, fell in a storm off Sicily on August 19. His widow, Angela Bacares, may now be liable for the damages.
Mike was acquitted in a separate US criminal trial of fraud and conspiracy in the agreement months before the sinking.
Hewlett Packard initially applauded its pricey 2011 acquisition of Lynch’s company but soon began to regret it. The corporation stated on Monday that it had “substantially succeeded” in its civil fraud allegations against Lynch and the former finance director, Sushovan Hussain.
“It is HPE’s intention to follow the proceedings through to their conclusion.”
However, the U.K. civil action judge has already concluded that the amount payable in damages will be “substantially less” than what the company is demanding.
The Lynch family’s spokesman declined to respond.
Mike and his daughter Hannah were among six passengers killed when the 56-meter (184-foot) luxury boat sank. One crew member, the boat’s chef, also perished, while 15 people escaped the accident. They gathered on the yacht to celebrate Lynch’s acquittal.
Hewlett Packard Won’t Drop Its UK Claim Against Tech Mogul Mike Lynch, Who Died When His Yacht Sank
Officials first reported that the boat was hit by a tornado over the water, known as a waterspout, but the weather phenomena was later identified as a downburst. Italian prosecutors are investigating the captain on possible accusations of manslaughter.
SOURCE | AP
Business
2024 | Elon Musk Hits Out At Judge Threatening To Suspend X In Brazil
Elon Musk has escalated his online attacks on a Supreme Court judge who has threatened to stop social media platform X in Brazil, labeling him “an evil dictator” in an ongoing battle between the two men.
Justice Alexandre de Moraes threatened to suspend X if Musk did not identify a new legal agent for the company in Brazil and pay any outstanding daily fines within 24 hours.
“Alexandre de Moraes is an evil dictator cosplaying as a judge,” the world’s richest person commented on X.
Elon Musk Hits Out At Judge Threatening To Suspend X In Brazil
Musk, who previously referred to de Moraes as “Darth Vader,” retweeted a statement from X’s Global Government Affairs team announcing that the judge’s “illegal demands and all related court filings” would be published in the coming days.
Brazil is a key market for social media networks. According to the Associated Press, around 40 million Brazilians, or roughly 18% of the population, use X at least once a month.
The trash-talking is the latest salvo in Musk’s spat with de Moraes, which revolves around free speech and alleged disinformation. X said earlier this month that it would suspend its business and lay off its employees in Brazil owing to what it described as “censorship orders” from the judge.
De Moraes had ordered the social media company to ban several X accounts he claimed were disseminating misinformation.
The most recent statement, signed by de Moraes, was also posted on the Supreme Court’s official X account, tagging both Musk and X’s Global Government Affairs account.
The Supreme Court statement was uploaded around 8:30 p.m. local time on Wednesday, giving Musk till Thursday evening local time to answer.
‘Censorship Orders’
On August 17, X issued a lengthy statement announcing that it would be forced to suspend operations and terminate employees in Brazil due to de Moraes’ “censorship orders.”
“Despite our numerous appeals to the Supreme Court not being heard, the Brazilian public not being informed about these orders and our Brazilian staff having no responsibility or control over whether content is blocked on our platform, Moraes has chosen to threaten our staff in Brazil rather than respect the law or due process,” according to the statement from X.
Elon Musk Hits Out At Judge Threatening To Suspend X In Brazil
“As a result, to ensure the safety of our employees, we have decided to close our activity in Brazil, effective immediately. The X service remains available to Brazilians. We are profoundly saddened to have been compelled to make this decision. Alexandre de Moraes is exclusively responsible.
“Due to demands by ‘Justice’ Alexandre [de Moraes] in Brazil that would require us to break (in secret) Brazilian, Argentinian, American and international law, X has no choice but to close our local operations in Brazil,” he said on X’s website.
SOURCE | AP
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