Grace Chion

Grace Chion asked for more details on the drivers behind the 2026 pipeline of 75 new stores, including any changes in the new store pipeline strategy, observations in the real estate environment, and the outlook for longer-term unit growth.

Answer

President and CEO Eric van der Valk confirmed the guidance of 75 new stores for 2026, reiterating that new store openings remain the best use of capital. He expressed satisfaction with the execution of 86 store openings in 2025, noting they were front-loaded, on budget, and outperformed projections. He stated that there is ample real estate available from distressed and bankrupt retailers, including a disproportionate number of Big Lots vacancies that were acquired on the open market. He highlighted the preference for 'warm box' Big Lots locations due to their existing discount customer base. He feels confident about the 75 stores, viewing it as the right number to balance accelerated growth with other strategic priorities for 2026.