Steve Fishman, the company's chairman and CEO, said in aconference call that the retailer, which operates about 1,400stores in 47 states, will close underperforming stores in areaswhere it can't get lease rates to meet its return expectations. Thecompany closed 130 stores earlier this year."We'll only be renewingleases that meet our return requirements," Fishman said. "If wedon't get the lease terms to enable the store to reach our returnhurdle, we'll close the store and walk away. It's just thatsimple."

Better control over inventory at Big Lots stores and itsdistribution center has helped streamline the company's costs, andfurther improvements should help the bottom line even further, hesaid.

"We're serious about lowering the cost structure," Fishmannoted.For the quarter ending April 29, 2006, Big Lots reported a76% surge in profits due to increased sales, particularly inconsumables and home furnishings, the company said.