![]() ![]() But these are the same national brands Bed Bath & Beyond previously carried in its 2.0 era-the same period of decline that led to the pivot toward private label goods. “We are prioritizing availability of leading national and emerging direct-to-consumer brands our customers know and love,” said Gove in a press release, which probably means the company will continue to de-emphasize private label merchandise and bring in more DTC brands. ![]() Merchandising: Here’s where it gets really vague. All Bed Bath & Beyond will say now is that “the digital channel is expected to rise to a higher proportion of sales with improved channel profitability.” Yet none of its statements on how the new funding will be used make mention of investment in its subpar digital operation. footprint will represent a drastic reduction, with broad swaths of the country having few if any stores left.Į-commerce: The company has not shared what percentage of its overall business is done online, but the last time it did, in the first quarter of 2021, it was 38 percent, albeit during the pandemic conditions when everyone was shopping online. (Curiously, it has said nothing about its joint venture in Mexico, where it has a handful of locations.) The new U.S. All stores in Canada-about 65 between the two nameplates-are closing as the company exits the country entirely. Stores: From its high of some 1,500 stores just a few years ago, Bed Bath & Beyond is radically slashing its fleet and says it will end up with about 360 stores, plus another 120 BuyBuy Baby locations. It’s all part of what Gove called the company’s new “supplier promise.” New interim CFO Holly Etlin was blunter when she said BBB was taking the next few months “to clean up its act.”īeyond new payment terms, here’s what we know so far about what management has in mind going forward: They also said DTC suppliers would start getting paid immediately after BBB was paid by shoppers for orders that are fulfilled directly by the vendor.Įxecutives also said they would be moving to net pricing terms, which would eliminate many of the special charges the store has used in the past to reduce its payments to its suppliers. Most important, they indicated BBB would begin to pay for merchandise “in advance or COD” depending on the vendor’s preference. On Thursday afternoon, BOH was able to access two calls during which BBB executives provided further details to its suppliers-one call was with conventional vendors, and the other one was with direct-to-consumer brands. We continue to put our customers at the center of every decision, positioning Bed Bath & Beyond to meet and exceed their expectations, while resetting our foundation for near- and long-term success.” In a statement last week, CEO Sue Gove focused on the big picture: “This transformative transaction will provide runway to execute our turnaround plan. The beleaguered retailer-which has secured new funds with the expectation that more are on the way-has sketched out a new strategy that is long on optimism but short on specifics. If you consider the company’s original store format in the 1970s and ’80s-back then it was just “Bed & Bath”-as 1.0, and its 1987 expansion into the “Beyond” hard goods categories as 2.0, then the private brand era of the past two years was 3.0. Let’s go with the assumption-as much of a stretch as it may be-that Bed Bath & Beyond manages to pull off its Houdini-like magic trick and gets the financing to continue to stay in business (and out of bankruptcy).
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