- Bed Bath & Beyond plans to shutter around 200 stores over the next two years.
- On July 8, the company published an investor relations presentation that revealed Bed Bath & Beyond intends to “lean into store closures” and “leverage significant lease expirations coming due.”
- The Bed Bath & Beyond has floundered in recent years, thanks to the coronavirus pandemic and previous leadership spats and financial struggles.
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Bed Bath & Beyond is looking to shut down around 200 “redundant” stores over the next two years.
The company’s first quarter investor relations presentation revealed that the brand intends to shutter around 200 locations over the next two years. The deck notes that the closures will “mostly” affected Bed Bath & Beyond. The company also owns retail chains like Buybuy Baby and Cost Plus, Inc.
Going forward, Bed Bath & Beyond will “lean into store closures” and “leverage significant lease expirations coming due” in an effort to turn things around, according to the presentation. The company has also cut “expenses associated with the maintenance of stores.”
Currently, the majority of Bed Bath & Beyond store associates and certain corporate employees are furloughed due to the pandemic.
The pandemic hit Bed Bath & Beyond hard, prompting the retailer to temporarily close all its stores on March 23. The company suffered a net loss of $302.29 million down from $371.09 million a year ago. Sales plunged 49%, sinking from $1.31 billion from $2.57 billion in 2019.
In an earnings call with analysts, CFO and treasurer Gustavo Arnal said that the drop in sales occurred “primarily due to the temporary store closures.” Most of Bed Bath & Beyond’s stores have since reopened.
But Bed Bath & Beyond’s struggles date back to beyond the onset of the coronavirus pandemic, as it has faced declining sales. Former Target CMO Mark Tritton took on the role of CEO in November 2019, several months after a coup by activist investors saw the ouster of former CEO Steven Temares. The retailer previously announced its plans to close 44 stores across eight states earlier in 2020.