Bed Bath & Beyond (BBBY) reported a 0.3% decline in SSSG (same-store sales growth) in 3Q17 against analysts’ expectation of a 2.4% decline. The decline in traffic at its stores lowered the company’s SSSG. However, some of the declines were offset by a rise in the average transaction amount. Management stated that its SSSG from customer-facing digital channels helped growth, while SSSG from its stores fell in the low single digits.
The company’s SSSG was driven by differentiated and complete product assortment in its furnishings and decor category. During the quarter, rugs, furniture, lighting, and home office posted strong sales, reflecting 70% of the company’s revenue growth in the first three quarters of 2017. As part of its assortment strategy, the company opened two andThat! stores, which have the latest store layouts, merchandise assortments, and store operations model.
To deliver a fair, reasonable, and competitive value across its products, BBBY has introduced a dynamic pricing for its online assortments. The enhancement of its digital registry platform to deliver a more personalized and guided experience, the expansion of its omnichannel service offerings, and the utilization of robust customer data to provide a more engaging customer experience drove BBBY’s SSSG during the quarter.