While Bed Bath & Beyond grew early during the pandemic as more people spent more time at home, the gains did not last and incomes continued to decline.
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Image of Michael M. Santiago / Getty
While Bed Bath & Beyond grew early during the pandemic as more people spent more time at home, the gains did not last and incomes continued to decline.
Image of Michael M. Santiago / Getty
Bed Bath & Beyond is cleaning the house.
The retail giant, best known for its popular coupons, has announced job cuts and store closures in an effort to reduce costs as it continues to grapple with weak sales and change. recent senior leadership.
In a Wednesday announcementThe New Jersey-based company announced it would cut its workforce by 20% and close about 150 stores.
According to Seth Basham, chief executive of investment and financial services firm Wedbush Securities, Bed Bath & Beyond is facing some of the same problems as other retailers in the home furniture sector, such as as sales decline and excess inventory need to be sold at a discount.
However, he said, the company was also hurt by its efforts to overhaul its supply chain during the pandemic, which resulted in unregulated store shelves, as well as failed transitions from brands. famous country to store-created private labels.
“That led to customers fleeing Bed Bath & Beyond and continues to put pressure on their sales trends,” Basham told NPR.
In 2019, the retailer hired former Target executive Mark Tritton as CEO. Part of his company revival plan was to sell private-label merchandise to Bed Bath & Beyond like Target, but the idea didn’t work out in the same way.
“At Target, there are a lot of consumables and other things [customers] Basham said.
Tritton left the company in June.
While Bed Bath & Beyond grew early during the pandemic as more people spent more time at home, the gains did not last and incomes continued to decline.
This week, the company said it had net sales of about $1.45 billion in the second quarter of this fiscal year — down about 26% from the same period last year.
Interim Director and CEO Sue Gove said Bed Bath & Beyond, after “a thorough review of our business”, is now making some major changes.
The company is expecting external financing from JP Morgan and investment firm Sixth Street Partners. The company says it is bringing back some of its beloved national brands and will try to re-engage customers through its loyalty program.
