Fiscal 2018 second-quarter performance
In fiscal 2018’s second quarter, Bed Bath & Beyond’s (BBBY) SSS (same-store sales) declined 0.6%, versus analysts’ expectation of an increase of 0.3%. The company’s SSS fell due to a decline in transactions at its stores, which was partially offset by an increase in the average transaction amount.
During the quarter, BBBY continued its focus on decorative furnishings, implementing a next-generation store format at Bed Bath & Beyond stores, personalized marketing, and inventory optimization to drive sales. Year-to-date, the company has added ~42,000 decorative furnishing SKUs (stock keeping units), which has increased its assortment count by 37%, YoY (year-over-year).
The company currently operates nine next-generation stores, and it plans to add nine more stores during the fall of this year. The sales growth and transactions at these next-generation stores, which have been open for more than four weeks, increased ~4% and ~3%, respectively, in the first half of 2018. These metrics for other stores were negative.
BBBY has implemented a new point-of-sale system at all of its Bed Bath & Beyond, Buy Buy Baby, and Harmon stores. It also launched new technology tools to aid in value optimization during the quarter.
Earlier this year, the company upgraded its enterprise order management system to improve order allocations at its stores and warehouses, increasing the speed of the delivery.