- Bed Bath & Beyond plans to close around 200 stores in the next two years.
- On July 8, the company released a presentation of investor relations that revealed that Bed Bath & Beyond intends to “lean on store closings” and “take advantage of the significant deadlines of the expiring lease”.
- Bed Bath & Beyond has plummeted in recent years, thanks to the coronavirus pandemic and previous leadership attacks and financial struggles.
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Bed Bath & Beyond is looking to close around 200 “redundant”
The company announced closings in the first quarter investor relations presentation. The sliding bridge said the closures would “primarily” affect Bed Bath & Beyond. The company also owns chain stores such as Buy Buy Baby and Cost Plus Inc.
Going forward, Bed Bath & Beyond “will move into store closings” and “take advantage of the significant expiration of the lease expiring”, in an attempt to turn things around, according to the presentation. The company also cut “expenses associated with shop maintenance”.
Most employees of the Bed Bath & Beyond stores and some corporate employees are laid off due to the pandemic.
The pandemic hit Bed Bath & Beyond hard, prompting the retailer to temporarily close all its stores on March 23rd. The company suffered a net loss of $ 302.29 million in the first quarter, down from $ 371.09 million a year ago. Sales plummeted 49%, falling from $ 1.31 billion from $ 2.57 billion in 2019.
In a earnings call with analysts, the Chief Financial Officer and treasurer Gustavo Arnal said that the drop in sales occurred “mainly due to the temporary shutdown of stores.” Most of the Bed Bath & Beyond stores have been reopened.
But Bed Bath & Beyond’s struggles go back beyond the onset of the coronavirus pandemic as it has faced declining sales. Target’s former Chief Marketing Officer Mark Tritton took over as CEO in November, several months after a group of activist investors pushed for the elimination of CEO Steven Temares. The retailer announced plans to close 44 stores in eight states earlier this year.