Bed Bath & Beyond to shutter 200 stores in next two years

Marco Green
July 9, 2020

New Jersey-based home goods retailer Bed Bath & Beyond announced Wednesday as part of its first-quarter results that it plans to permanently close about 200 stores over the next two years.

A Bed Bath & Beyond spokesperson didn't immediately respond to a request for comment. Bed, Bath & Beyond operates some 955 locations, as well as chains buybuy Baby, Christmas Tree Shops and Harmon Face Values. Excluding one-time items, it lost $1.96 per share.

The 200 store closures mostly will be Bed Bath & Beyond stores, the statement said. "Our actions to strengthen our financial position and liquidity are enhancing our flexibility and capacity to invest and rebuild our business for long-term success".

Sales fell 49% to $1.31 billion from $2.57 billion a year ago, and it reported an adjusted loss per share of $1.96 on revenue of $1.31 billion - beating an adjusted loss estimate of $1.22 but falling short of $1.39 billion revenue, according to the report.

With almost all of Bed Bath & Beyond's stores now open, Tritton said he is encouraged by early customer response, including continued strong demand - in excess of 80% - across the chain's digital channels during the month of June. Digital sales represented about two-thirds of the chain's first-quarter sales.

Businesses across the country have suffered from the economic fallout from the coronavirus pandemic.

Gross margin decreased 780 basis points to 26.7%, which he company blamed on "unfavorably impacted by channel and product mix related to the substantial shift in sales to digital channels, including higher fulfillment costs, lower margin, COVID-essential products sold during the quarter, and the deleverage of fixed expenses".

Other reports by Click Lancashire

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