After an almost 26 percent decline in sales for the second quarter of 2022, Bed Bath & Beyond is making some “strategic” changes to improve its balance sheet. Part of those changes is closing 150 stores across the country.
What Bed Bath & Beyond stores are closing? Read on to find out!
Bed Bath & Beyond published a list of 56 stores it will be shuttering.
Although Bed Bath & Beyond hasn't disclosed with the public a full list of the 150 stores it plans on closing, it did recently post a list containing 56 stores that will be shuttering. Included on the list are stores located in Tucson, Phoenix, Wichita Falls, and Stamford.
The store inside the Sawgrass Mills Mall (Sunrise, Fla.) is also set to close. The outlet shopping mall, which has served as a tourist hotspot for years, has watched many of its commercial spaces become vacant due to declining foot traffic and shifts in consumer spending. Here's a look at a few other cities that will be losing their Bed Bath & Beyond stores in 2022:
- Charlotte, N.C.
- Flanders, N.J.
- Middletown, N.Y.
- Lakewood, Calif.
- Burbank, Calif.
- Sanford Fla.
- Cincinnati, Ohio
- Leesburg, Va.
The Bed Bath & Beyond stores scheduled to close are are considered “lower-producing” Bed Bath & Beyond banner stores.
Besides the company’s banner stores, it owns buybuy Baby and Harmon Face Values stores. Those store locations aren’t included in this round of store closures.
Bed Bath & Beyond is cutting 20 percent of its workforce.
The company plans to lay off 20 percent of its staff and cut its capital spending plan by almost 40 percent. Although it originally forecasted $400 million in capital expenditures for fiscal 2022, that figure has been reduced to $250 million.
The changes are aimed at helping Bed Bath & Beyond increase customer engagement, drive traffic, and recapture market share, interim CEO Sue Gove said in a statement. The company plans to change its merchandising and inventory strategy and focus on driving digital and foot traffic.
“We believe these changes will have a widespread positive impact across customer experience, inventory assortment, supply chain execution, and cost structure,” Gove said. “The customer underpins our decisions, and we are committed to delivering what they want while driving growth, profitability, and financial returns."
Bed Bath & Beyond has shut down locations over the past few years. Between July 2020 and January 2022, the company shuttered 170 of its Bed Bath & Beyond, buybuy Baby, and Harmon Face Value store locations.
Bed Bath & Beyond may be considering bankruptcy.
Bed Bath & Beyond sales have been steadily declining, causing speculation that the company may be considering bankruptcy. Earlier this year, the company reported a 25 percent drop in sales and a net loss of $358 million for the first quarter of 2022. Bloomberg reported in August that the retailer hired a law firm specializing in bankruptcy filings.
Bed Bath & Beyond stock is down despite a push by retail investors.
Bed Bath & Beyond (BBBY) stock has also taken a nose dive. On Sept. 1, BBBY shares were trading at about $9, a far cry from a year ago when it was trading at $27.74 on September 1, 2021. Retail inventors in the WallStreetBets Reddit community gave BBBY stock a boost as its latest “meme stock,” which helped drive shares up over $23 on Aug. 17, but the price has dropped considerably since then.
Bed Bath & Beyond is still searching for a CEO.
The retailer has also had some struggles with its leadership this year. In June, the company ousted CEO Mark Tritton. Gove, a Bed Bath & Beyond board member, has been filling in as interim CEO while the company searches for a permanent replacement. The board has hired the nationally recognized firm, Russell Reynolds, to help in the search.
As part of the changes announced on Aug. 31, the company is eliminating its chief operating officer and chief store officer leadership positions. Another position the big-box retailer will need to fill is its chief financial officer.