----

----

| Ohio                                                           | 06-1119097                                 |
|----------------------------------------------------------------|--------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |  (I.R.S. Employer Identification No.) |

| 300 Phillipi Road, P.O. Box 28512, Columbus, Ohio | 43228-5311 |
|---------------------------------------------------|------------|
| (Address of principal executive offices)          | (Zip Code) |

----

----

----

BIG LOTS

|                          |                      |                                                                                                                                   | Page   |
|-------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                          |                      |                                                                                                                                   |   |
| Part I. Financial Information | 2                         |
|                          |                      |                                                                                                                                   |   |
|                          | Item 1.                   | Financial Statements                                                                                                                   | 2      |
|                          |                      |                                                                                                                                   |   |
|                          | a)                        | Consolidated Statements of Operations for the Thirteen Weeks Ended May 1, 2010 (Unaudited) and May 2, 2009 (Unaudited)                 | 2      |
|                          |                      |                                                                                                                                   |   |
|                          | b)                        | Consolidated Balance Sheets at May 1, 2010 (Unaudited) and January 30, 2010                                                            | 3      |
|                          |                      |                                                                                                                                   |   |
|                          | c)                        | Consolidated Statements of Shareholders’ Equity for the Thirteen Weeks Ended May 1, 2010 (Unaudited) and May 2, 2009 (Unaudited) | 4      |
|                          |                      |                                                                                                                                   |   |
|                          | d)                        | Consolidated Statements of Cash Flows for the Thirteen Weeks Ended May 1, 2010 (Unaudited) and May 2, 2009 (Unaudited)                 | 5      |
|                          |                      |                                                                                                                                   |   |
|                          | e)                        | Notes to Consolidated Financial Statements (Unaudited)                                                                                 | 6      |
|                          |                      |                                                                                                                                   |   |
|                          |                      |                                                                                                                                   |   |
|                          | Item 2.                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                            | 14     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 3.                   | Quantitative and Qualitative Disclosures About Market Risk                                                                             | 19     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 4.                   | Controls and Procedures                                                                                                                | 19     |
|                          |                      |                                                                                                                                   |   |
|                          |                      |                                                                                                                                   |   |
| Part II. Other Information    | 19                        |
|                          |                      |                                                                                                                                   |   |
|                          |                      |                                                                                                                                   |   |
|                          | Item 1.                   | Legal Proceedings                                                                                                                      | 19     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 1A.   | Risk Factors                                                                                                                           | 20     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 2.                   | Unregistered Sales of Equity Securities and Use of Proceeds                                                                            | 20     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 3.                   | Defaults Upon Senior Securities                                                                                                        | 20     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 4.                   | (Removed and Reserved).                                                                                                                | 20     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 5.                   | Other Information                                                                                                                      | 20     |
|                          |                      |                                                                                                                                   |   |
|                          | Item 6.                   | Exhibits                                                                                                                               | 21     |
|                          |                      |                                                                                                                                   |   |
|                          | Signature                 | 21                                                                                                                                     |

----

Table of Contents

Part 

Item 1. Financial 

BIG 

----

|                                                                               |   | Thirteen Weeks Ended  |      |
|------------------------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                               |   | May 1, 2010 |      |   | May 2, 2009 |   |
|                                                                               |   |                  |      |   |   |   |
| Net sales                                                                          |   | $                     | 1,235,162 |   |   | $ | 1,141,656 |   |
| Cost of sales (exclusive of depreciation expense shown separately below)           |   |                  | 733,207   |   |   |   | 679,476 |   |
| Gross margin                                                                       |   |                  | 501,955   |   |   |   | 462,180 |   |
| Selling and administrative expenses                                                |   |                  | 392,780   |   |   |   | 382,682 |   |
| Depreciation expense                                                               |   |                  | 19,100    |   |   |   | 19,215 |   |
| Operating profit                                                                   |   |                  | 90,075    |   |   |   | 60,283 |   |
| Interest expense                                                                   |   |                  | (506      | ) |   |   | (321 | ) |
| Interest and investment income                                                     |   |                  | 343       |   |   |   | 6 |   |
| Income from continuing operations before income taxes                              |   |                  | 89,912    |   |   |   | 59,968 |   |
| Income tax expense                                                                 |   |                  | 33,914    |   |   |   | 23,658 |   |
| Income from continuing operations                                                  |   |                  | 55,998    |   |   |   | 36,310 |   |
| Loss from discontinued operations, net of tax benefit of $66 and $51, respectively |   |                  | (100      | ) |   |   | (79 | ) |
| Net income                                                                         |   | $                     | 55,898    |   |   | $ | 36,231 |   |
|                                                                               |   |                  |      |   |   |   |   |   |
| Earnings per common share - basic                                                  |   |                  |      |   |   |   |   |   |
| Continuing operations                                                              |   | $                     | 0.69      |   |   | $ | 0.45 |   |
| Discontinued operations                                                            |   |                  | -         |   |   |   | - |   |
|                                                                               |   | $                     | 0.69      |   |   | $ | 0.45 |   |
|                                                                               |   |                  |      |   |   |   |   |   |
| Earnings per common share - diluted                                                |   |                  |      |   |   |   |   |   |
| Continuing operations                                                              |   | $                     | 0.68      |   |   | $ | 0.44 |   |
| Discontinued operations                                                            |   |                  | -         |   |   |   | - |   |
|                                                                               |   | $                     | 0.68      |   |   | $ | 0.44 |   |
|                                                                               |   |                  |      |   |   |   |   |   |
| Weighted-average common shares outstanding:                                        |   |                  |      |   |   |   |   |   |
| Basic                                                                              |   |                  | 80,932    |   |   |   | 81,408 |   |
| Dilutive effect of share-based awards                                              |   |                  | 1,453     |   |   |   | 916 |   |
| Diluted                                                                            |   |                  | 82,385    |   |   |   | 82,324 |   |

----

Table of Contents

BIG 

----

|                                                                                                                                         |   | (Unaudited)May 1, 2010 |      |   | January 30,2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|----------------------|--------|
| ASSETS                                                                                                                                       |   |                             |      |   |                 |   |
| Current assets:                                                                                                                              |   |                             |      |   |                 |   |
| Cash and cash equivalents                                                                                                                    |   | $                                | 260,948   |   |                 | $      | 283,733 |   |
| Inventories                                                                                                                                  |   |                             | 745,226   |   |                 |   | 731,337 |   |
| Deferred income taxes                                                                                                                        |   |                             | 54,143    |   |                 |   | 51,012 |   |
| Other current assets                                                                                                                         |   |                             | 63,332    |   |                 |   | 56,884 |   |
| Total current assets                                                                                                                         |   |                             | 1,123,649 |   |                 |   | 1,122,966 |   |
| Property and equipment - net                                                                                                                 |   |                             | 487,879   |   |                 |   | 491,256 |   |
| Deferred income taxes                                                                                                                        |   |                             | 15,733    |   |                 |   | 28,136 |   |
| Other assets                                                                                                                                 |   |                             | 31,012    |   |                 |   | 27,135 |   |
| Total assets                                                                                                                                 |   | $                                | 1,658,273 |   |                 | $      | 1,669,493 |   |
|                                                                                                                                         |   |                             |      |   |                 |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                   |   |                             |      |   |                 |   |   |   |
| Current liabilities:                                                                                                                         |   |                             |      |   |                 |   |   |   |
| Accounts payable                                                                                                                             |   | $                                | 359,844   |   |                 | $      | 309,862 |   |
| Property, payroll, and other taxes                                                                                                           |   |                             | 73,889    |   |                 |   | 69,388 |   |
| Accrued operating expenses                                                                                                                   |   |                             | 59,248    |   |                 |   | 52,519 |   |
| Insurance reserves                                                                                                                           |   |                             | 40,388    |   |                 |   | 39,570 |   |
| KB bankruptcy lease obligation                                                                                                               |   |                             | 4,665     |   |                 |   | 4,786 |   |
| Accrued salaries and wages                                                                                                                   |   |                             | 33,582    |   |                 |   | 47,402 |   |
| Income taxes payable                                                                                                                         |   |                             | 17,951    |   |                 |   | 18,993 |   |
| Total current liabilities                                                                                                                    |   |                             | 589,567   |   |                 |   | 542,520 |   |
| Deferred rent                                                                                                                                |   |                             | 33,731    |   |                 |   | 31,490 |   |
| Insurance reserves                                                                                                                           |   |                             | 44,695    |   |                 |   | 44,695 |   |
| Unrecognized tax benefits                                                                                                                    |   |                             | 19,525    |   |                 |   | 28,577 |   |
| Other liabilities                                                                                                                            |   |                             | 23,831    |   |                 |   | 20,799 |   |
| Shareholders’ equity:                                                                                                                  |   |                             |      |   |                 |   |   |   |
| Preferred shares - authorized 2,000 shares; $0.01 par value; none issued                                                                     |   |                             | -         |   |                 |   | - |   |
| Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 80,488 shares and 81,922 shares, respectively |   |                             | 1,175     |   |                 |   | 1,175 |   |
| Treasury shares - 37,007 shares and 35,573 shares, respectively, at cost                                                                     |   |                             | (894,438  | )      |                 |   | (791,042 | ) |
| Additional paid-in capital                                                                                                                   |   |                             | 507,746   |   |                 |   | 515,061 |   |
| Retained earnings                                                                                                                            |   |                             | 1,345,251 |   |                 |   | 1,289,353 |   |
| Accumulated other comprehensive loss                                                                                                         |   |                             | (12,810   | )      |                 |   | (13,135 | ) |
| Total shareholders' equity                                                                                                                   |   |                             | 946,924   |   |                 |   | 1,001,412 |   |
| Total liabilities and shareholders' equity                                                                                                   |   | $                                | 1,658,273 |   |                 | $      | 1,669,493 |   |

----

Table of Contents

BIG 

----

|                                                        |   | Common |   |   | Treasury |   |   | Additional Paid-In Capital |   |   | Retained Earnings |   |   | Accumulated Other Comprehensive Income (Loss) |     |   | Total  |   |
|-------------------------------------------------------------|--------|--------|--------|--------|----------|--------|--------|----------------------------|--------|--------|-------------------|--------|--------|-----------------------------------------------|----------|--------|--------|--------|
|                                                        |   | Shares |   |   | Amount   |   |   | Shares                     |   |   | Amount            |   |   |                                          |     |   |   |   |   |   |
|                                                        |   |   |   |   |     |   |   |                       |   |   |              |   |   |                                          |     |   |   |   |   |   |   |   |   |   |
| Balance - January 31, 2009                                  |   |   | 81,315 |   |     | $      | 1,175  |                       |   |   | 36,180            |   |   | $                                             | (804,561 | )      |   | $      | 504,552 |   |   | $ | 1,088,984 |   |   | $ | (15,305 | ) |   | $ | 774,845 |   |
| Net income                                                  |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | 36,231 |   |   |   | - |   |   |   | 36,231 |   |
| Other comprehensive income                                  |   |   |   |   |     |   |   |                       |   |   |              |   |   |                                          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of pension, net of tax of $(268)               |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | 399 |   |   |   | 399 |   |
| Comprehensive income                                        |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 36,630 |   |
| Purchases of common shares                                  |   |   | (84    | )      |     |   | -      |                       |   |   | 84                |   |   |                                          | (1,754   | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,754 | ) |
| Exercise of stock options                                   |   |   | 49     |   |     |   | -      |                       |   |   | (49               | )      |   |                                          | 1,081    |   |   |   | (479 | ) |   |   | - |   |   |   | - |   |   |   | 602 |   |
| Restricted shares vested                                    |   |   | 311    |   |     |   | -      |                       |   |   | (311              | )      |   |                                          | 6,913    |   |   |   | (6,913 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Tax charge from share-based awards                          |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | (807 | ) |   |   | - |   |   |   | - |   |   |   | (807 | ) |
| Sale of treasury shares used for deferred compensation plan |   |   | 2      |   |     |   | -      |                       |   |   | (2                | )      |   |                                          | 11       |   |   |   | 22 |   |   |   | - |   |   |   | - |   |   |   | 33 |   |
| Share-based compensation expense                            |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | 4,827 |   |   |   | - |   |   |   | - |   |   |   | 4,827 |   |
| Balance - May 2, 2009                                       |   |   | 81,593 |   |     | $      | 1,175  |                       |   |   | 35,902            |   |   | $                                             | (798,310 | )      |   | $      | 501,202 |   |   | $ | 1,125,215 |   |   | $ | (14,906 | ) |   | $ | 814,376 |   |
| Net income                                                  |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | 164,138 |   |   |   | - |   |   |   | 164,138 |   |
| Other comprehensive income                                  |   |   |   |   |     |   |   |                       |   |   |              |   |   |                                          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of pension, net of tax of $(837)               |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | 1,341 |   |   |   | 1,341 |   |
| Valuation adjustment of pension, net of tax of $(273)       |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | 430 |   |   |   | 430 |   |
| Comprehensive income                                        |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 165,909 |   |
| Purchases of common shares                                  |   |   | (3     | )      |     |   | -      |                       |   |   | 3                 |   |   |                                          | (95      | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (95 | ) |
| Exercise of stock options                                   |   |   | 313    |   |     |   | -      |                       |   |   | (313              | )      |   |                                          | 6,964    |   |   |   | (2,635 | ) |   |   | - |   |   |   | - |   |   |   | 4,329 |   |
| Restricted shares vested                                    |   |   | 17     |   |     |   | -      |                       |   |   | (17               | )      |   |                                          | 378      |   |   |   | (378 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Tax benefit from share-based awards                         |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | 1,366 |   |   |   | - |   |   |   | - |   |   |   | 1,366 |   |
| Sale of treasury shares used for deferred compensation plan |   |   | 2      |   |     |   | -      |                       |   |   | (2                | )      |   |                                          | 21       |   |   |   | 58 |   |   |   | - |   |   |   | - |   |   |   | 79 |   |
| Share-based compensation expense                            |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | 15,448 |   |   |   | - |   |   |   | - |   |   |   | 15,448 |   |
| Balance - January 30, 2010                                  |   |   | 81,922 |   |     | $      | 1,175  |                       |   |   | 35,573            |   |   | $                                             | (791,042 | )      |   | $      | 515,061 |   |   | $ | 1,289,353 |   |   | $ | (13,135 | ) |   | $ | 1,001,412 |   |
| Net income                                                  |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | 55,898 |   |   |   | - |   |   |   | 55,898 |   |
| Other comprehensive income                                  |   |   |   |   |     |   |   |                       |   |   |              |   |   |                                          |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization of pension, net of tax of $(223)               |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | 325 |   |   |   | 325 |   |
| Comprehensive income                                        |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 56,223 |   |
| Purchases of common shares                                  |   |   | (3,788 | )      |     |   | -      |                       |   |   | 3,788             |   |   |                                          | (158,629 | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (158,629 | ) |
| Exercise of stock options                                   |   |   | 1,535  |   |     |   | -      |                       |   |   | (1,535            | )      |   |                                          | 35,515   |   |   |   | (8,271 | ) |   |   | - |   |   |   | - |   |   |   | 27,244 |   |
| Restricted shares vested                                    |   |   | 818    |   |     |   | -      |                       |   |   | (818              | )      |   |                                          | 19,707   |   |   |   | (19,707 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Tax benefit from share-based awards                         |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | 12,850 |   |   |   | - |   |   |   | - |   |   |   | 12,850 |   |
| Sale of treasury shares used for deferred compensation plan |   |   | 1      |   |     |   | -      |                       |   |   | (1                | )      |   |                                          | 11       |   |   |   | 51 |   |   |   | - |   |   |   | - |   |   |   | 62 |   |
| Share-based compensation expense                            |   |   | -      |   |     |   | -      |                       |   |   | -                 |   |   |                                          | -        |   |   |   | 7,762 |   |   |   | - |   |   |   | - |   |   |   | 7,762 |   |
| Balance - May 1, 2010                                       |   |   | 80,488 |   |     | $      | 1,175  |                       |   |   | 37,007            |   |   | $                                             | (894,438 | )      |   | $      | 507,746 |   |   | $ | 1,345,251 |   |   | $ | (12,810 | ) |   | $ | 946,924 |   |

----

Table of Contents

BIG LOTS

|                                                                              |   | Thirteen Weeks Ended  |     |
|-----------------------------------------------------------------------------------|--------|-----------------------|----------|
|                                                                              |   | May 1, 2010 |     |   | May 2, 2009 |   |
| Operating activities:                                                             |   |                  |     |   |   |   |
| Net income                                                                        |   | $                     | 55,898   |   |   | $ | 36,231 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                  |     |   |   |   |   |   |
| Depreciation and amortization expense                                             |   |                  | 18,275   |   |   |   | 18,372 |   |
| Deferred income taxes                                                             |   |                  | 9,049    |   |   |   | (2,518 | ) |
| Loss on disposition of equipment                                                  |   |                  | 20       |   |   |   | 498 |   |
| KB Toys matters                                                                   |   |                  | -        |   |   |   | (55 | ) |
| Non-cash share-based compensation expense                                         |   |                  | 7,762    |   |   |   | 4,827 |   |
| Pension expense, net of contributions                                             |   |                  | 961      |   |   |   | 1,371 |   |
| Change in assets and liabilities:                                                 |   |                  |     |   |   |   |   |   |
| Inventories                                                                       |   |                  | (13,889  | ) |   |   | 18,465 |   |
| Accounts payable                                                                  |   |                  | 49,982   |   |   |   | 21,400 |   |
| Current income taxes                                                              |   |                  | (11,049  | ) |   |   | 1,502 |   |
| Other current assets                                                              |   |                  | (5,412   | ) |   |   | (1,312 | ) |
| Other current liabilities                                                         |   |                  | (6,256   | ) |   |   | (1,962 | ) |
| Other assets                                                                      |   |                  | (4,355   | ) |   |   | (3,149 | ) |
| Other liabilities                                                                 |   |                  | 6,775    |   |   |   | 4,203 |   |
| Net cash provided by operating activities                                         |   |                  | 107,761  |   |   |   | 97,873 |   |
|                                                                              |   |                  |     |   |   |   |   |   |
| Investing activities:                                                             |   |                  |     |   |   |   |   |   |
| Capital expenditures                                                              |   |                  | (11,484  | ) |   |   | (12,863 | ) |
| Cash proceeds from sale of property and equipment                                 |   |                  | 66       |   |   |   | 31 |   |
| Other                                                                             |   |                  | (9       | ) |   |   | (26 | ) |
| Net cash used in investing activities                                             |   |                  | (11,427  | ) |   |   | (12,858 | ) |
|                                                                              |   |                  |     |   |   |   |   |   |
| Financing activities:                                                             |   |                  |     |   |   |   |   |   |
| Proceeds from borrowings under bank credit facility                               |   |                  | -        |   |   |   | 220,100 |   |
| Payment of borrowings under bank credit facility                                  |   |                  | -        |   |   |   | (281,800 | ) |
| Payment of capital lease obligations                                              |   |                  | (646     | ) |   |   | (675 | ) |
| Proceeds from the exercise of stock options                                       |   |                  | 27,244   |   |   |   | 602 |   |
| Excess tax benefit from share-based awards                                        |   |                  | 12,850   |   |   |   | 148 |   |
| Deferred bank credit facility fees paid                                           |   |                  | -        |   |   |   | (5,340 | ) |
| Payment for treasury shares acquired                                              |   |                  | (158,629 | ) |   |   | (1,754 | ) |
| Treasury shares sold for deferred compensation plan                               |   |                  | 62       |   |   |   | 33 |   |
| Net cash used in financing activities                                             |   |                  | (119,119 | ) |   |   | (68,686 | ) |
|                                                                              |   |                  |     |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                  |   |                  | (22,785  | ) |   |   | 16,329 |   |
| Cash and cash equivalents:                                                        |   |                  |     |   |   |   |   |   |
| Beginning of period                                                               |   |                  | 283,733  |   |   |   | 34,773 |   |
| End of period                                                                     |   | $                     | 260,948  |   |   | $ | 51,102 |   |
|                                                                              |   |                  |     |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                 |   |                  |     |   |   |   |   |   |
| Cash paid for interest, including capital leases                                  |   | $                     | 41       |   |   | $ | 134 |   |
| Cash paid for income taxes, excluding impact of refunds                           |   | $                     | 22,922   |   |   | $ | 24,476 |   |
| Non-cash activity:                                                                |   |                  |     |   |   |   |   |   |
| Accrued property and equipment                                                    |   | $                     | 8,227    |   |   | $ | 5,240 |   |

----

Table of Contents

BIG 

----

Table of Contents

----

Table of Contents

|                                                 |   | First Quarter |   |
|------------------------------------------------------|--------|---------------|--------|
|                                                 |   | 2010          |   |   | 2009 |   |
|                                                 |   |          |   |   |   |   |
| Weighted-average fair value of stock options granted |   | $             | 13.67  |   |   | $ | 7.83 |   |
| Risk-free interest rate                              |   |          | 2.2    | % |   |   | 1.7 | % |
| Expected life (years)                                |   |          | 4.2    |   |   |   | 4.3 |   |
| Expected volatility                                  |   |          | 45.7   | % |   |   | 56.0 | % |
| Expected annual forfeiture rate                      |   |          | 1.5    | % |   |   | 1.5 | % |

|                                          |   | Number of Options |       |   | Weighted Average Exercise Price Per Share |   |   | Weighted Average Remaining Contractual Term (years) |   |   | Aggregate Intrinsic Value (000's) |   |
|-----------------------------------------------|--------|-------------------|------------|--------|-------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|-----------------------------------|--------|
| Outstanding stock options at January 30, 2010 |   |              | 4,496,633  |   |                                      | $      | 19.46  |                                                |   |   |                              |   |   |   |
| Granted                                       |   |              | 967,500    |   |                                      |   | 36.01  |                                                |   |   |                              |   |   |   |
| Exercised                                     |   |              | (1,535,410 | )      |                                      |   | 17.74  |                                                |   |   |                              |   |   |   |
| Forfeited                                     |   |              | (22,450    | )      |                                      |   | 29.83  |                                                |   |   |                              |   |   |   |
| Outstanding stock options at May 1, 2010      |   |              | 3,906,273  |   |                                      | $      | 24.17  |                                                |   |   | 5.3                               |   |   | $ | 54,839 |   |
| Vested and expected to vest at May 1, 2010    |   |              | 3,797,773  |   |                                      | $      | 24.12  |                                                |   |   | 5.3                               |   |   | $ | 53,516 |   |
| Exercisable at May 1, 2010                    |   |              | 1,452,722  |   |                                      | $      | 19.78  |                                                |   |   | 4.3                               |   |   | $ | 26,766 |   |

----

Table of Contents

|                                                       |   | Number of Shares |     |   | Weighted Average Grant-Date Fair Value Per Share |   |
|------------------------------------------------------------|--------|------------------|----------|--------|--------------------------------------------------|--------|
| Outstanding nonvested restricted stock at January 30, 2010 |   |             | 849,488  |   |                                             | $      | 19.48 |   |
| Granted                                                    |   |             | 482,500  |   |                                             |   | 35.94 |   |
| Vested                                                     |   |             | (817,700 | )      |                                             |   | 19.30 |   |
| Forfeited                                                  |   |             | (3,000   | )      |                                             |   | 31.20 |   |
| Outstanding nonvested restricted stock at May 1, 2010      |   |             | 511,288  |   |                                             | $      | 35.23 |   |

|                                             |   | First Quarter |   |
|--------------------------------------------------|--------|---------------|--------|
|                                             |   | 2010          |   |   | 2009 |   |
| (In thousands)                                   |   |          |   |   |   |   |
| Total intrinsic value of stock options exercised |   | $             | 28,456 |   |   | $ | 560 |   |
| Total fair value of restricted stock vested      |   |          | 30,091 |   |   |   | 6,525 |   |

----

Table of Contents

|                                                     |   | First Quarter |   |
|----------------------------------------------------------|--------|---------------|--------|
|                                                     |   | 2010          |   |   | 2009 |   |
| Discount rate                                            |   |          | 5.7    | % |   |   | 7.3 | % |
| Rate of increase in compensation levels                  |   |          | 3.5    | % |   |   | 3.5 | % |
| Expected long-term rate of return                        |   |          | 8.0    | % |   |   | 8.0 | % |
| Measurement date for plan assets and benefit obligations |   | 01/30/10      |   |   | 01/31/09 |   |

|                                          |   | First Quarter |   |
|-----------------------------------------------|--------|---------------|--------|
|                                          |   | 2010          |   |   | 2009 |   |
| (In thousands)                                |   |          |   |   |   |   |
| Service cost - benefits earned in the period  |   | $             | 609    |   |   | $ | 565 |   |
| Interest cost on projected benefit obligation |   |          | 814    |   |   |   | 932 |   |
| Expected investment return on plan assets     |   |          | (1,062 | ) |   |   | (793 | ) |
| Amortization of actuarial loss                |   |          | 554    |   |   |   | 673 |   |
| Amortization of prior service cost            |   |          | (9     | ) |   |   | (9 | ) |
| Amortization of transition obligation         |   |          | 3      |   |   |   | 3 |   |
| Net periodic pension cost                     |   | $             | 909    |   |   | $ | 1,371 |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

|           |   | First Quarter |      |
|----------------|--------|---------------|-----------|
|           |   | 2010          |      |   | 2009 |   |
| (In thousands) |   |          |      |   |   |   |
| Consumables    |   | $             | 362,172   |   |   | $ | 359,204 |   |
| Furniture      |   |          | 254,561   |   |   |   | 206,802 |   |
| Home           |   |          | 184,172   |   |   |   | 164,715 |   |
| Seasonal       |   |          | 173,222   |   |   |   | 162,204 |   |
| Hardlines      |   |          | 152,506   |   |   |   | 142,187 |   |
| Other          |   |          | 108,529   |   |   |   | 106,544 |   |
| Net sales      |   | $             | 1,235,162 |   |   | $ | 1,141,656 |   |

----

Table of Contents

|                       |   | May 1, 2010 |    |
|----------------------------|--------|-------------|---------|
| (In thousands)             |   | Total       |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Money market funds         |   | $           | 85,100  |   |   | $ | 85,100 |   |   | $ | - |   |   | $ | - |   |
| Variable rate demand notes |   |        | 30,499  |   |   |   | - |   |   |   | 30,499 |   |   |   | - |   |
| Total                      |   | $           | 115,599 |   |   | $ | 85,100 |   |   | $ | 30,499 |   |   | $ | - |   |

|                       |   | January 30, 2010 |    |
|----------------------------|--------|------------------|---------|
| (In thousands)             |   | Total            |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Money market funds         |   | $                | 76,350  |   |   | $ | 76,350 |   |   | $ | - |   |   | $ | - |   |
| Variable rate demand notes |   |             | 56,152  |   |   |   | - |   |   |   | 56,152 |   |   |   | - |   |
| Total                      |   | $                | 132,502 |   |   | $ | 76,350 |   |   | $ | 56,152 |   |   | $ | - |   |

2. 

----

Table of Contents

|   | · | Comparable store sales for stores open at least two years at the beginning of 2010 increased 6.0%. |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | Gross margin dollars increased $39.8 million and gross margin rate increased 10 basis points. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | Selling and administrative expenses increased $10.1 million.  As a percentage of net sales, selling and administrative expenses decreased 170 basis points to 31.8% of sales. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation expense decreased $0.1 million or 20 basis points to 1.5% of sales. |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | The operating profit rate increased 200 basis points to 7.3%. |
|--------|--------|---------------------------------------------------------------|

|   | · | Diluted earnings per share from continuing operations were $0.68 per share, an increase of 54.5% compared to last year’s $0.44 per share. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Inventory increased by 3.8% or $27.0 million to $745.2 million during the first quarter of 2010 as compared to our 8.2% increase in sales during the same period, resulting in record inventory turnover for the first quarter. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cash and cash equivalents were $260.9 million at May 1, 2010 and we continued to have no borrowings outstanding, while investing $11.5 million in capital expenditures, which included opening 7 new stores. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On March 10, 2010, we executed a $150.0 million accelerated share repurchase transaction, which reduced our common shares outstanding by 3.6 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | 2010   |   |   | 2009   |   |
|-------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                            |   |   |   |   |   |   |
| Stores open at the beginning of the fiscal year |   |   | 1,361  |   |   |   | 1,339 |   |
| Stores opened during the period                 |   |   | 7      |   |   |   | 8 |   |
| Stores closed during the period                 |   |   | (1     | )      |   |   | (2 | ) |
| Stores open at the end of the period            |   |   | 1,367  |   |   |   | 1,345 |   |

----

Table of Contents

|                                                                     |   | First Quarter |   |
|--------------------------------------------------------------------------|--------|---------------|--------|
|                                                                     |   | 2010          |   |   | 2009 |   |
|                                                                     |   |          |   |   |   |   |
| Net sales                                                                |   |          | 100.0  | % |   |   | 100.0 | % |
| Cost of sales (exclusive of depreciation expense shown separately below) |   |          | 59.4   |   |   |   | 59.5 |   |
| Gross margin                                                             |   |          | 40.6   |   |   |   | 40.5 |   |
| Selling and administrative expenses                                      |   |          | 31.8   |   |   |   | 33.5 |   |
| Depreciation expense                                                     |   |          | 1.5    |   |   |   | 1.7 |   |
| Operating profit                                                         |   |          | 7.3    |   |   |   | 5.3 |   |
| Interest expense                                                         |   |          | 0.0    |   |   |   | 0.0 |   |
| Interest income                                                          |   |          | 0.0    |   |   |   | 0.0 |   |
| Income from continuing operations before income taxes                    |   |          | 7.3    |   |   |   | 5.3 |   |
| Income tax expense                                                       |   |          | 2.7    |   |   |   | 2.1 |   |
| Income from continuing operations                                        |   |          | 4.5    |   |   |   | 3.2 |   |
| Discontinued operations                                                  |   |          | 0.0    |   |   |   | 0.0 |   |
| Net income                                                               |   |          | 4.5    | % |   |   | 3.2 | % |

|             |   | First Quarter |      |   |   |   |   |   |   |
|------------------|--------|---------------|-----------|--------|--------|--------|--------|--------|--------|
|             |   | 2010          |      |   | 2009   |   |   | Change |   |
| ($ in thousands) |   |          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumables      |   | $             | 362,172   |   |   |   | 29.3   | %      |   | $ | 359,204 |   |   |   | 31.5 | % |   | $ | 2,968 |   |   |   | 0.8 | % |
| Furniture        |   |          | 254,561   |   |   |   | 20.6   |   |   |   | 206,802 |   |   |   | 18.1 |   |   |   | 47,759 |   |   |   | 23.1 |   |
| Home             |   |          | 184,172   |   |   |   | 14.9   |   |   |   | 164,715 |   |   |   | 14.4 |   |   |   | 19,457 |   |   |   | 11.8 |   |
| Seasonal         |   |          | 173,222   |   |   |   | 14.0   |   |   |   | 162,204 |   |   |   | 14.2 |   |   |   | 11,018 |   |   |   | 6.8 |   |
| Hardlines        |   |          | 152,506   |   |   |   | 12.4   |   |   |   | 142,187 |   |   |   | 12.5 |   |   |   | 10,319 |   |   |   | 7.3 |   |
| Other            |   |          | 108,529   |   |   |   | 8.8    |   |   |   | 106,544 |   |   |   | 9.3 |   |   |   | 1,985 |   |   |   | 1.9 |   |
| Net sales        |   | $             | 1,235,162 |   |   |   | 100.0  | %      |   | $ | 1,141,656 |   |   |   | 100.0 | % |   | $ | 93,506 |   |   |   | 8.2 | % |

----

Table of Contents

----

Table of Contents

----

Table of Contents

 3. 

 4. Controls 

Part II

 1. Legal 

----

Table of Contents

 1A. 

2. Unregistered 

| Period                               |   | (a) Total Number of Shares Purchased |   |   | (b) Average Price Paid per Share |   |   | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|--------------------------------------|--------|--------------------------------------|--------|--------|----------------------------------|--------|--------|--------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------|--------|
| January 31, 2010 - February 27, 2010 |   |                                 | -      |   |                             | $      | -      |                                                                                 |   |   | -                                                                                            |   |   | $ | 150,000 |   |
| February 28, 2010 - March 27, 2010   |   |                                 | 3,554  | (2)    |                             |   | 37.93  | (3)                                                                                  |   |   | 3,554                                                                                        |   |   |   | 250,000 |   |
| March 28, 2010 - May 1, 2010         |   |                                 | 234    | (1)    |                             |   | 36.80  |                                                                                 |   |   | -                                                                                            |   |   |   | 250,000 |   |
| Total                                |   |                                 | 3,788  |   |                             | $      | 37.86  |                                                                                 |   |   | 3,554                                                                                        |   |   | $ | 250,000 |   |

3. Defaults 

4. (

5. Other 

----

Table of Contents

6. Exhibits

|   | Exhibit No. | Document |
|--------|-------------|----------|

|   | 31.1* | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

|   | 31.2* | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

|   | 32.1* | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

|   | 32.2* | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|-------|-----------------------------------------------------------------------------------------------------|

Sign

|   | BIG LOTS, INC.                                                                          |
|--------|-----------------------------------------------------------------------------------------|
|   |                                                                                    |
|   | By:/s/ Joe R. Cooper                                                                    |
|   |                                                                                    |
|   | Joe R. Cooper                                                                           |
|   | Executive Vice President and                                                            |
|   | Chief Financial Officer                                                                 |
|   | (Principal Financial Officer, Principal Accounting Officer and Duly Authorized Officer) |

----