The Bed Bath & Beyond Corporation is an American chain of domestic merchandise retail stores. It operates many stores throughout the United States, Canada, Mexico and Puerto Rico. Moreover, it has plans to expand its business and open more stores in Europe.
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1.Closed 150 stores in New Jersey
3.Plan to roll out at least eight in-house brands
4.Stock plunges 89% below 2014 high
Closed 150 stores in New Jersey
Bed Bath & Beyond, the home products chain that has struggled with declining sales and cash flow, announced plans to close 150 stores nationwide. As part of the effort to stabilize the company, the firm has also said it will lay off 20% of its workforce and cut capital spending by $250 million.
The move comes after a series of executive shakeups. Last year, the company announced plans to reduce its store count and downsize its fleet. This included laying off a number of senior executives. Among the departures were CEO Mark Tritton, chief operating officer Joe Hartsig, and chief financial officer Gustavo Arnal.
In recent years
- the company has been grappling with the decline in revenue and declining receipts, as well as supply chain and credit line issues. With a tattered balance sheet and a strained vendor network, Bed Bath & Beyond is attempting to shore up its finances by cutting costs.
- On Thursday, Bed Bath & Beyond announced the first round of store closings. These are located in the Tri-State area of New York, New Jersey, and Pennsylvania, and represent about 1 in 6 of the company’s total locations. Although the exact closing dates have not been revealed, Bed Bath & Beyond officials say the stores will close in the coming months.
- Bed Bath & Beyond is expected to report second-quarter results later this month. For the first three months of the fiscal year, the company reported a 26% drop in in-store sales, as well as a net loss of $358 million.
- In late August, Bed Bath & Beyond secured $500 million in new financing. This, combined with its upcoming restructuring plan, will give the company the resources it needs to close stores and restructure its finances. However, it also vowed to cut its capital expenditures to $250 million, down from $400 million.
- In June, the company announced a loss of $358 million. In the third quarter of the fiscal year, Bed Bath & Beyond saw a 33% drop in in-store sales. During this period, the company also announced it would be closing a number of stores, including five in New York.
Remodeled stores
Bed Bath and Beyond plans to re-imagine their stores by enhancing the customer experience. CEO Mark Tritton has spent the last year re-shaping the company’s product and services portfolio. As a result, the company has introduced new private brands and same-day delivery partnerships. In addition, the company has partnered with leading brands to create unique experiences.
The flagship store
- in Manhattan’s Chelsea neighborhood recently underwent a major overhaul. It is now much more open and spacious. New floors, windows, fixtures, and signage have been added. It is also a showcase for the company’s private labels, as well as other national brands.
- Bed Bath and Beyond plans to remodel 450 stores over the next three years. Each will undergo a slightly different level of updates. Those undergoing major upgrades will be able to take advantage of new “scan and buy” technology, which allows customers to scan items and bypass the checkout line. This feature is also available to online shoppers using a mobile app.
- One of the most significant changes is the redesign of Bed Bath and Beyond’s flagship store in New York City. Previously, the store was cramped and cluttered with merchandise. Now, it features a clean, open layout, with plenty of floor space for merchandise displays. The store is divided into areas for every room of the home.
Bed Bath and Beyond also announced
- a strategic investment in same-day delivery. It has teamed up with DoorDash and Uber Eats to offer delivery to customers. Several new regional fulfillment centers were opened to serve the chain’s customers. Also, the company laid off 10% of its corporate staff.
- With more and more consumers putting their money in the home, the chain is hoping to attract more visitors. By reducing the amount of merchandise they carry, the company will be able to devote more floor space to showcasing products. For instance, they plan to offer a SodaStream bar for guests to use while they shop.
- The company has a huge assortment of products, including both aspirational and value items. However, Bed Bath and Beyond has struggled to stay afloat in recent years.
Plan to roll out at least eight in-house brands
Bed Bath and Beyond (NASDAQ:BBBY) recently unveiled its new, comprehensive growth strategy. The company plans to roll out at least eight in-house brands over the next 18 months, revamp its assortment and enhance its digital and omnichannel experience.
The first major announcement
- was the launch of a new “owned brand”: Nestwell. This brand focuses on bath essentials and bedding items. It was launched in March, and will begin rolling out more products in April.
- Another initiative that’s helping boost Bed Bath’s sales is a new, aggressive plan to cut costs. Last quarter, the company burned through $383.5 million. It also said it will stop selling Studio 3B, one of three private label brands introduced under former CEO Mark Tritton.
- Also on the growth agenda is a new line of storage containers, called Squared Away. These units are designed to make it easier for customers to organize their spaces. And the company’s new fall advertising campaign will focus on popular national brands.
- However, Bed Bath & Beyond will need to attract the right talent to help it succeed. In May, the company announced four new board members, including a former Target executive. That’s a big change from the previous six members.
The company is also planning
- to relaunch its Haven bath brand. This brand will provide an assortment of organic cotton products. It’s set to relaunch in April, and the company will also start rolling out more products later this month.
- In addition, Bed Bath and Beyond plans to introduce six new owned brands in the next 18 months. The company says the changes will help the business meet customers’ needs, increase profits and strengthen its balance sheet.
- In the newest effort to improve its online shopping experience, the company will offer its customers curbside pickup. Additionally, the company will upgrade its stores and its technology.
- In short, Bed Bath and Beyond’s new strategy is just the latest attempt to revive the struggling brick-and-mortar chain. Earlier this year, the company was targeted by a group of investors. As a result, it faced mounting pressure and suffered its first annual loss as a public company.
Stock plunges 89% below 2014 high
Bed Bath and Beyond is a specialty retailer that sells a wide range of products for the home. The company has various brands including buybuy BABY, Haven, Studio 3B and Wild Sage. In addition, the company has an online marketplace called the Bed Bath and Beyond Marketplace.
The company has been struggling
- with poor margins and declining sales. In the first quarter, the company reported a loss of $189 million, compared to a loss of $72 million in the same period a year earlier. It also plans to discontinue the Haven and Studio 3B labels.
- The company has been working with lenders to help finance its business. In August, the firm secured a $375 million facility. At the end of the second quarter, the company had a cash balance of $135 million, a reduction of 22% from a year ago.
- The company has seen a significant decrease in free cash flow in the first half of fiscal 2022. As a result, the company expects to report a net loss of $386 million by the end of fiscal 2022.
- Bed Bath & Beyond has already begun to close 150 lower-performing stores. According to the company, the move will allow it to bolster inventory of the National Brands. Meanwhile, the company plans to discontinue six of its own labels.
The company’s stock
- has fallen more than 89% from the 2014 high, a result of investors’ fears about its future. Since the company’s going concern warning in July, the stock has fallen by more than 65%.
- The company plans to file for bankruptcy protection. However, the company is exploring strategic alternatives. One possible option would be to sell the company’s remaining assets.
- Bed Bath and Beyond has also begun a cost-cutting program. For example, it plans to close 150 “lower-producing” stores and implement a 20 percent cut in the workforce.
Although Bed Bath & Beyond has not yet hired a permanent chief executive officer, the company has hired former Target and Zale chief operating officer Sue Gove as its interim CEO. She has worked in the retail industry for more than 30 years.
Conclusion
In August, Bed Bath & Beyond announced that it would be closing 150 underperforming stores. This is part of a larger plan to stabilize the company’s finances. The retailer is aiming to shift its strategy and refocus on its national brands.
For example, the company has launched a number of private brand labels, including Nestwell bedding and bath lines. These are aimed at reviving sales during the holiday season. It is also cutting costs. By the end of the year, the company is expecting to save $250 million.