Bed bath and beyond works near me

Though Bed Bath & Beyond got a boost early in the pandemic when many people were spending more time at home, the gains didn't last, and earnings have continued to drop. Michael M. Santiago/Getty Images hide caption

toggle caption

Michael M. Santiago/Getty Images

Though Bed Bath & Beyond got a boost early in the pandemic when many people were spending more time at home, the gains didn't last, and earnings have continued to drop.

Michael M. Santiago/Getty Images

Bed Bath & Beyond is cleaning house.

The retail giant, known for its ubiquitous coupons, announced job cuts and store closures in an effort to reduce costs as it continues to struggle with weak sales and a recent senior leadership shakeup.

In a Wednesday announcement, the New Jersey-based company vowed to slash its workforce by 20% and close about 150 stores.

According to Seth Basham, a managing director at the financial services and investment firm Wedbush Securities, Bed Bath & Beyond is seeing some of the same problems as other retailers in the home furnishings sector, such as a decline in sales and excess inventory that needs to be sold off.

But, he said, the company was also hurt by an attempt to overhaul its supply chain during the pandemic, which led to understocked store shelves, as well as a failed shift from popular national brands to private labels created by the store.

"That led to further defection of customers from Bed Bath & Beyond and further pressure on their sales trends," Basham told NPR.

In 2019, the retailer hired former Target executive Mark Tritton as CEO. Part of his plan to rehabilitate the company was to sell merchandise on private labels specific to Bed Bath & Beyond like Target does, but the idea didn't catch on in the same way.

"At Target, there are a lot of consumables and other things [customers] went to the store for, and they came to like and enjoy the private label brands they saw," Basham said. "You didn't have that draw at Bed Bath & Beyond."

Tritton left the company in June.

Though Bed Bath & Beyond got a boost early in the pandemic when many people were spending more time at home, the gains didn't last, and earnings have continued to drop.

The company said this week that it had net sales of about $1.45 billion in the second quarter of this fiscal year – a roughly 26% drop from the same period last year.

Director and interim CEO Sue Gove said Bed Bath & Beyond, after taking a "thorough look at our business," is now making some major changes.

The company is expecting an infusion of outside financing from J.P. Morgan and the investment firm Sixth Street Partners. It's bringing back some beloved national brands, the company said, and it will try to reengage with customers through its loyalty program.

Bed Bath & Beyond has announced dozens of the roughly 150 stores it plans to close.

The struggling home goods retailer released its plans last month to shutter the "lower producing" locations, representing about 20% of its namesake stores.

The closures are part of a broader plan to try to stabilize the company's finances and turn around its declining sales. In late August, Bed Bath secured more than $500 million in new financing, including a loan, ahead of the key holiday season. Its workforce is getting smaller, too, as it cut its corporate and supply chain staff by about 20%.

Bed Bath & Beyond posted a list of 56 namesake locations it will close. They are scattered across the U.S., from California and Nevada to Ohio and Florida.

The retailer operates other chains, too. It had 135 Buybuy Baby stores and 51 locations under the Harmon, Harmon Face Values or Face Values banners, as of the end of the fiscal first quarter. It is adding to its baby goods banner, however. It opened five Buybuy Baby stores in that three-month period ended May 28.

Already, Bed Bath & Beyond's footprint has shrunk significantly. Over the past two years, it has dropped by about 35% as the company shuttered other locations. It had a total of 1,478 stores, at the end of the first quarter in 2020. By the same time this year, it had a total of 955 stores, including 769 Bed Bath & Beyond shops.

Bed Bath & Beyond is at a crucial moment. It has put up quarter after quarter of declining sales and burned through cash as it remodeled stores, developed private brands and bought back its own stock. Its same-store sales declined 23% in the first quarter and 26% for the three-month period ended Aug. 27.

The company is scheduled to report its full second-quarter results later this month.

Bed Bath & Beyond is searching for new leadership to take over for its interim CEO and CFO. Its board pushed out Mark Tritton, a Target veteran tapped as chief executive in 2019 to lead a turnaround effort, and Joe Hartsig, its chief merchandising officer. Its chief financial officer, Gustavo Arnal, died by suicide earlier this month. The company eliminated the jobs of chief store officer and chief operating officer.

Shares of the company are down about 38% so far this year. As of midday Thursday, the stock was trading around $8.90, up roughly 1.6%.

See the list of locations closing here.

If you are having suicidal thoughts, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.

Are Bed Bath and Beyond coupons being discontinued?

What are the sister stores to Bed Bath and Beyond?

What kind of company is Bbby?

What is a beyond Deal Bed Bath and Beyond?