Bed Bath & Beyond is facing significant challenges in the retail market, and the question on everyone's mind is whether the company will close stores. According to reports, Bed Bath & Beyond plans to close around 200 stores in the next two years.
This is a massive undertaking, considering the company operates over 1,500 stores across the United States and Canada. The store closures are part of a larger restructuring effort aimed at improving the company's financial performance.
Bed Bath & Beyond has been struggling to compete with online retailers like Amazon and other big-box stores, leading to declining sales and profits. The company has been trying to adapt to changing consumer behavior, but it's clear that some drastic measures are needed.
The store closures will likely impact employees and customers in the affected areas, and it's unclear what the long-term effects will be on the local economies.
Related reading: Bed Bath & beyond Inc. Investor Relations
Bed Bath & Beyond Closes 200 Stores in Next 2 Years
The company will close 200 of its namesake and other stores over the next two years.
Bed Bath & Beyond has not yet announced which locations will close, but it will save between $250 million and $350 million.
The majority of those closures will be the company's signature domestic merchandise stores.
The company closed 21 Bed Bath & Beyond stores during the fiscal first quarter, in addition to 14 stores it closed in late 2019.
Net sales from online were up 82% for the quarter and up more than 100% for April and May, but were down 77% at brick-and-mortar stores.
The company said its net sales for the fiscal first quarter were down 49% from the same period in 2019 due to temporary store closures from the COVID-19 pandemic.
Bed Bath & Beyond operates World Market, Cost Plus World Market and buybuy BABY, among others.
The retailer also operates Harmon Face Values.
The company's CEO, Mark Tritton, said it is not providing financial guidance for 2020 due to the uncertainty of impacts related to the pandemic.
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Website and Ownership
The website is back up and running, courtesy of Overstock.com, which has purchased the Bed, Bath & Beyond brand. This means you can now shop online and use the app as usual.
Overstock.com is now the new owner of the brand, and it's worth noting that accounts with Overstock.com will automatically become Bed, Bath and Beyond accounts. This change is happening seamlessly, so you don't need to do anything to update your account.
One thing to be aware of is that the new ownership means the company will no longer be affiliated with buybuy BABY and Harmon. This might affect how you shop or what products are available.
The website relaunch is a relief for fans of the retailer, but there are some changes to be aware of. For example, items sold through Bed, Bath & Beyond before August 1 cannot be returned, and gift cards and coupons from the previous owners are no longer valid.
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Sales and Closing Dates
Bed Bath & Beyond's store closing sales will start on Wednesday.
Any purchases made during these sales will be final, so make sure you're okay with that before you buy.
Gift cards will still work at all stores until May 8, so you can keep using them for a little while longer.
The company is warning customers that coupons won't be honored once the sales begin, so don't try to use them.
Merchandise credit, given instead of cash for a refund, can be used until May 15.
You can still shop on Bed Bath & Beyond's website and app, but it's unclear how store closing deals will work on these platforms.
If you have a Rewards+ store credit card, you only have one day to use it - April 26 is the last day the benefits associated with the card will work.
All 360 Bed Bath & Beyond stores, as well as the 120 Buy Buy Baby sister stores, will be shuttered sometime in the next few months.
The company anticipates closing all of its stores by June 30.
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Frequently Asked Questions
Who is moving into Empty Bed Bath and Beyond stores?
Several retail chains, including Burlington, Michaels, and HomeGoods, are moving into former Bed Bath & Beyond locations. Additionally, entertainment venues like indoor pickleball courts and trampoline parks are also filling the vacancies.
Featured Images: pexels.com
