Bed Bath & Beyond Closing Underperforming Stores by End of February
Jan 7, 2022 By MarketDepth
Bed Bath & Beyond announced the closure of more underperforming stores, planned for the beginning of the year. The retailer disclosed a list of 37 locations throughout 19 states that are set to close by the end of February. The list includes five California locations, seven in New York as well as one in California.
“While the decision to close a store is always a difficult one, Bed Bath & Beyond looks forward to serving customers at other stores.”Bed Bath & Beyond spokesperson said in a statement
However, the closures are part of a previously announced multi-year plan that includes the creation of private labels, remodeling stores as well as steering the business towards e-commerce. The company is currently remodeling 450 locations for approximately USD250 Million. Nevertheless, the retail chain has experienced a lack of sales as well as declining foot traffic during recent years as shoppers move towards rivals like Target and Amazon.
“We are executing a full-scale transformation and simultaneously running a business in a highly unpredictable environment.”Chief Executive Officer Mark Tritton said in an earnings conference call
The retailer released disappointing earnings Thursday as same-stores sales fell 7% with sales of USD1.9 Billion. According to Tritton, the continuous supply chain disruptions have also cost the company about USD100 Million.
Bed Bath & Beyond shares have fallen 31% throughout the last year and have a current market cap of USD1.40 Billion.