- Bed Bath & Beyond is set to close 63 stores in 2020, according to USA Today.
- That swath of stores set to close this year are located in 29 states across the US.
- The retail chain also plans to shutter a total of 200 stores over the next two years.
- On July 8, the company published an investor relations presentation that revealed Bed Bath & Beyond intends to “lean into store closures” and “leverage significant lease expirations coming due.”
- Bed Bath & Beyond has floundered in recent years, thanks to the coronavirus pandemic and previous leadership spats and financial struggles.
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Bed Bath & Beyond is looking to close 63 stores in 29 states by the end of 2020, according to USA Today.
“As we rebuild our authority and establish a truly omni-always shopping experience for our customers, we recently announced a store optimisation plan that will see us establish the right network of stores to serve our customers,” company spokeswoman Jessica Joyce told USA Today.
Bed Bath & Beyond did not respond to Business Insider’s repeated requests for comment.
The initial 63 stores represent the first round of store closures for the struggling retail brand, which will shut down about 200 “redundant” stores over the next two years. The company announced plans to close stores in its first-quarter investor relations presentation in July. The company’s prepared slide deck said the closures would “mostly” affect the Bed Bath & Beyond brand. Bed Bath & Beyond also owns retail chains like Buy Buy Baby and Cost Plus Inc.
Bed Bath & Beyond will “lean into store closures” and “leverage significant lease expirations coming due” in an effort to turn things around, according to the presentation. The company has also cut “expenses associated with the maintenance of stores.”
The majority of Bed Bath & Beyond store associates and certain corporate employees are furloughed because of the pandemic.
The pandemic hit Bed Bath & Beyond hard, prompting the retailer to temporarily close all of its stores on March 23. The company suffered a net loss of $US302.29 million in the first quarter, down from $US371.09 million a year ago. Sales plunged 49%, sinking from $US1.31 billion from $US2.57 billion in 2019.
In a July earnings call with analysts, Chief Financial Officer and Treasurer Gustavo Arnal said the drop in sales occurred “primarily due to the temporary store closures.” Most of Bed Bath & Beyond’s stores have since reopened.
But Bed Bath & Beyond’s struggles date back to beyond the onset of the coronavirus pandemic, as it has faced declining sales. Former Target Chief Marketing Officer Mark Tritton took on the role of CEO in November, several months after a group of activist investors pushed for the ouster of CEO Steven Temares. The retailer announced its plans to close 44 stores across eight states earlier this year.
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