Big Lots conservative, but not overly so

By Nicole Maestri

NEW YORK (Reuters) - Big Lots Inc's (BIG.N) is planning business conservatively for this upcoming Christmas shopping season, but not to the point of excessive caution, the close-out retailer's chief executive officer said on Tuesday.

"We're conservative with our plan for the fourth quarter of this year, but we're not going to cut off our nose to spite our face," Big Lots CEO Steve Fishman told the Reuters Global Retail Summit.

"We have the ability to do more business and at the same time make more money," he said.

Big Lots specializes in sales of excess inventory, ranging from TVs to rugs to toys. While demand for some of its discretionary items, like home decor and furniture, has suffered, Big Lots has been somewhat insulated from the recession as shoppers seek out its low prices on food, tissues or pet food.

Last year's U.S. Christmas shopping season represented the "low of lows" as consumers sharply curtailed spending amid a financial crisis, Fishman said. But he said retailers need to avoid the impulse to over-react in preparing for this year's holiday season.

"What you don't want to do is be too conservative because you could make a mistake in your business, and I hope that we haven't for this year," he said. "What you don't want to do is deliver yourself a bad plan and deliver yourself an opportunity not to do business."

TESTING APPEAL TO UPSCALE SHOPPERS

Since Fishman took the helm of Big Lots in mid-2005, he has worked to turn the retailer around, stocking its locations with more name-brand merchandise while also closing underperforming stores.