A customer carries a Buy Buy Baby shopping bag in New York, U.S., on Thursday, August 25, 2022.
Gabby Jones | Bloomberg | beautiful pictures
Buybuy Baby is a rare bright spot for struggle Outdoor shower bed.
However, on Thursday, the child gear chain reported a sharp drop in quarterly sales – raised eyebrows and evoked concern that it might also lose customers.
Buybuy Baby comparable sales fell by a high percentage of teenagers from a year ago during the three-month period ending August 27. At Bed Bath & eponymous stores and websites Beyond, comparable sales fell 28% year-over-year.
Retail sales rose last year thanks to government stimulus, including from child tax credits. Interim CEO Sue Gove said on Thursday that Buybuy Baby faced tough comparisons in the quarter because of that, but has maintained market share in this category.
Buybuy Baby was once one of the parent company’s strongest businesses and most valuable assets. Store of the same name As Bed Bath & Beyond closed, the company has opened a new location Muabuy Baby. Its banner also caught the attention of activist investor Ryan Cohen, co-founder of Tough and the chairman of GameStopWho promote higher performing banner sales. It is reported attract interest from potential buyersalso.
Bed Bath, has agreed to explore strategic options for Buybuy Baby as part of the truce with Cohen, said it is focusing on driving sales and refreshing the business, including enrolling children. (Several other companies, including Walgreens and Kohl’salso cited a colder market for mergers and acquisitions, prompting them to postpone or terminate potential deals.) Cohen has since sold all his shares in Bed Bath.
Buybuy Baby Brand President Patty Wu told investors on Thursday that the banner plans to return to growth in the second half of the year. She talks about her ambition to be the go-to place for parents during pregnancy and beyond, and points out some of the initiatives being worked on.
She said Buybuy Baby will launch its first private label brand in November, which includes clothing, furniture and decorations for babies to toddlers at good value. It will carry popular holiday items, such as family-friendly pajamas, and provide related resources on its website, such as travel gear tips that help with flights. or more favorable trip during vacation.
Plus, she said, it will relaunch its child registry during early next year and expand the number of store events.
“We will turn our stores into parenting hubs by combining product and education together,” she said.