It planned to cut inventory and simplify pricing, including relying less on its ubiquitous coupons to drive sales.Īnother key part of turnaround plan was investing in private labels. In turn, Bed Bath & Beyond looked to drive customers back in store, putting $400 million in remodeling and tech upgrades. The 2018 fiscal year ended with net sales dropping 2.6% year over year, and a net loss of $137 million. “But they didn’t.” Attempts to drive trafficĮfforts to revive the company went into full force in 2019 amid declining sales. “If Bed Bath & Beyond was going to survive, they needed to do something probably 10 years ago, to put themselves on a new trajectory toward a new model that would give consumers a sense of unique value,” he said. Though it reported 37% of sales occurring online, Bed Bath & Beyond said in its latest annual report that its competitors include those who “are larger than us with significantly greater financial resources.” This meant increased competition from Amazon, Target and other marketplaces that sell housewares without having to stock the inventory themselves. ![]() Though Bed Bath & Beyond was successful as a big box specialty retailer, the advent of e-commerce and online marketplaces meant its value proposition dropped, Stephens said. Yet it remains unclear what exact steps the retailer can take to rescue its financials.ĭoug Stephens, a retail industry consultant, said companies can suffer from “near-termism,” or failure to anticipate future conditions. “We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals,” CEO Sue Gove’s statement said. Still, CEO Sue Gove - who joined the company as a director in 2019 and was appointed CEO in October - said Bed, Bath & Beyond remains focused on transforming the organization and building progress quarter by quarter. 5 statement said the company, which also owns buybuy Baby and Harmon Face Values, continues to struggle with inventory - and its ability to catch up is stifled by reduced credit limits. By the second quarter of 2022, reported in September, the company reported drop of 28% in net sales year-over-year, and a negative free cash flow of $320.5 million. The company also reported nearly $1.2 billion in long-term debt. Net losses in fiscal 2021 came in at $559.6 million, more than double the $150.8 million net loss reported in fiscal year 2020. Then in October, ratings agency Moody’s downgraded it to Caa2, just several steps from the bottom, citing a “high likelihood of default over the next 12 months.” The late summer of 2022 saw Tritton’s exit, staff cuts and store closures, as well as the sudden death of CFO Gustavo Arnal. But those plans, compounded by the pandemic’s shutdowns and supply chain disruptions, failed to turn sales in the right direction. Former CEO Mark Tritton, brought in from Target in late 2019 following a takeover attempt by activist investors, put forward a turnaround effort centered on private label launches and retooled store layouts. ![]() The announcement arrives after years of net losses, new merchandising strategies and cuts to operations.
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