The broadline stores, mostly in smaller-populated Midwest markets, are on track to lose $9 million and account for 4% of the sales at its 1,500 closeout stores. Executives decided to close the units after a portfolio-wide review in which they found "a growing number of marginally performing stores in weaker or less densely populated markets." After a similar review last year, executives decided to close 40 units this year.

Big Lots executives have decided to close its furniture stores because those units have also lost money. Furniture transactions in broadline units account for 12% of the company's total sales, but furniture-store sales accounted for less than 1% of revenues.

Ten Big Lots stores remain closed due to hurricanes Katrina and Rita. Of those, four are expected to open in the next few weeks and six units might be lost or would take several months to rebuild.