Bed Bath & Beyond stores, a company that sells home-related products, has recently announced that it will be closing down 56 of its 150 stores. This shutting down of stores is part of a strategic decision that they have taken. Currently, the business is struggling to make a profit, so they have decided to discontinue some of its retail stores. In this, we will explain to you why Bed Bath & Beyond store is closing and will be discontinued in 2023.
This will help them save money and target the audience to earn profits. Shifting down stores is expected to augment revenue generation for the company. In its new strategic policy, the brand announced that it would focus on national brands, pushing its loyal customers and exceeding their loyalty. This way, they will focus on the critical audience capable of chasing their goods and services.
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Less workforce to save operational costs
The brand will also cut 20% of its workforce from 150 stores nationwide. The officials from the brand have said that their focus is to go back to their roots and provide what they are best at. According to the brand, people still have a lot of appreciation for their brand. Categorizing their products might help them achieve what they are seeking right now.
Several stores across the nation will be closed. The discontinuation of stores is done similarly. The brand has ensured that people will still have access to nearby stores even if they discontinue the stores at some locations.
Close Store locations that are being discontinued
Louisiana Bed Bath & Beyond store closure
- Bossier City: 2900 Meadow Creek Drive
- Massachusetts Bed Bath & Beyond store closings
- Dorchester: 8B Allstate Road, Suite
- Milford: 230 Fortune Boulevard
- Seekonk: 35 Highland Avenue
Michigan Bed Bath & Beyond store closings
- Chesterfield: 50551 Waterside Drive
- Farmington Hills: 31075 Orchard Lake Road
- Northville: Northville Retail Center, 1722 Haggerty Rd.
- Walker: 3410 Alpine Avenue NW Walker, MI 49544
- White Lake Township: 9050 Highland Road
Georgia Bed Bath & Beyond store closings
- Snellville: Presidential Market Center, 1905 Scenic Hwy Suite 5000
- Suwanee: 2623 Peachtree Pkw
- Illinois Bed Bath & Beyond store closings
Bourbonnais: 2056 North State Route 50
- Carbondale: Carbondale University Mall, 1265 E. Main Street
- Fairview Heights: Fairview Center, 6611 N. Illinois
- Gurnee: 6132 Grand Ave., Gurnee Mills Mall
- Joliet: 2850 Plainfield Road
- Schaumburg: 915 East Golf Road
Iowa Bed Bath & Beyond store closings
- Dubuque: 2475 N.W. Arterial
- Waterloo: 1522 Flammang Drive
Connecticut Bed Bath & Beyond store closings
- Stamford: 2275 Summer Street
- Waterford: 850 Hartford Turnpike
Florida Bed Bath & Beyond store closings
- Sanford: 111 Towne Center Blvd.
- Sunrise: 12801 W. Sunrise Blvd., Anchor C
Arizona Bed Bath & Beyond store closings
- Phoenix: 34750 N. North Valley Parkway
- Tucson: 5225 South Calle Santa Cruz
California Bed Bath & Beyond store closings
- Burbank: 201 East Magnolia Blvd.
- Lakewood: 75 Lakewood Center Mall
- Larkspur: 2601 Larkspur Landing Circle
- Marina: 117 General Stilwell Drive
- Redding: 1140 Hilltop Drive
- Santee: 9918 Mission Gorge Road
- San Leandro: 15555 East 14th Street, Suite 240
- Palmdale: 39421 10th Street West
Massachusetts Bed Bath & Beyond store closings
- Dorchester: 8B Allstate Road, Suite 1
- Milford: 230 Fortune Boulevard
- Seekonk: 35 Highland Avenue
New Jersey Bed Bath & Beyond store closings
- Flanders: 30 International Drive, Suite 1
- Manalapan: 13 Route 9 South
- Paramus: 34 E Ridgewood Ave
New York Bed Bath & Beyond store closings
- Farmingdale: 251 Airport Plaza Blvd.
- Middletown: 470 Route 211 East, Suite 3
- Mt. Vernon: 500 East Sandford Blvd.
- New Hartford: 4805 Commercial Drive
- Plattsburgh: 73 Centre Drive, Suite
North Carolina Bed Bath & Beyond store closure
- Charlotte: The Arboretum, 3413 Pineville-Matthews Rd.
- Ohio Bed Bath & Beyond store closings
- Cincinnati: 3681 Stone Creek Blvd.
- Hamilton: Princeton Road Bridgewater Falls, 3451 Princeton Road
- Perrysburg: 10027 Fremont Pike
- Sandusky: 4020 Milan Road, Unit# 910
Oregon Bed Bath & Beyond store closure
- Beaverton: 2780 SW Cedar Hills Blvd
Pennsylvania Bed Bath & Beyond store closure
- Wynnewood: 70 E. Wynnewood Blvd.
- Puerto Rico Bed Bath & Beyond store closure
- Bayamon: Bayamon Plaza Del Sol, 725 West Main Avenue
Texas Bed Bath & Beyond store closings
- Port Arthur: Port Arthur Central Mall 3100 Highway 365 Suite 114
- Wichita Falls: 3201 Lawrence Road, Suite A
Virginia Bed Bath & Beyond store closings
- Christiansburg: 135 Shoppers Way N.W.
- Leesburg, 532 Fort Evans Road
Washington Bed Bath & Beyond store closure
- Lakewood: Lakewood Towne Center 5830 Lakewood Towne Center Blvd., S.W.
Why is Bed Bath & Beyond closing its stores?
Bed Bath & Beyond, which is a retail home goods supplier in the United States of America, has decided to shut down many of its stores throughout the country. People need help understanding the reason behind this decision of the store. It is said that the brand has decided to take a strategic decision to focus on the more critical aspects of the business. By investing their money and energy in the more profitable chain stores, they want to earn more profits. They are deducting all the stores that are not bringing any revenues and are not at a good location.
As a result, the brand has decided to discontinue 56 of its chain stores throughout the country. Currently, 150 operating chain stores from this brand are in the market. Out of them, around 84 will be left now. But the real reason is now being highlighted by the brand’s investors. The investors have said that they had been informing the brand about the business’s possible bankruptcy and dim prospects. They have been expecting a similar situation to happen for a long time. The brand was left with only two options.
One was to file for bankruptcy, and the other was to reduce operational costs and give themselves a last chance. After filing for bankruptcy, the brand will be left with the option of going for a merger or acquisition. The company’s founders and CEO don’t want to go for an acquisition right now. This is why they give themselves and the brand a last chance.
Is Bed Bath & Beyond going out of business?
Yes, the brand has been facing losses for a very long time. It needed help competing with other market competitors such as Amazon and Shopify. Almost all e-commerce websites sell old products that Bed Bath & Beyond sells to their customers. This means that due to a lack of innovation and exclusivity, the products sold by the brand are available in different places. Due to differences in pricing and quality, people often tend to go for other options available in the market. Generally, the products sold by Amazon are more affordable than BBB.
For some time, the company wondered if it could operate. The company’s CEO has said they considered shutting down the company as they thought no strategy or plan would work out. But later on, they went for a complete restructuring of their business model and came up with a new system. This is their last option because if it is unsuccessful, they will have to file for bankruptcy. Investors have invested a lot of money into their businesses, and the company has not shown any positive outcomes.
The brand was expecting that they would perform well during the holiday season. But all the plans failed as there was no success rate even during Christmas. The brand could have served better in the market and increased its sales during a period when the sales of almost every business were boosted.
For the last quarter, the company could make sales worth US$1.3 billion which is three times lesser than the same quarter of the previous year. The performance of the company is declining exponentially.
Causes of Bed Bath & Beyond store closure
The brand has decided to shut down its stores because of the continuous laws they have been facing for a long time. Last year they incurred a loss of $276 million. This year’s losses were calculated to be around $386 million. This means that instead of making profits, the brand is losing more and more money with time.
The company’s investors have said they have expected a similar situation for a long time. They also said they want the company executives and people in authority to be in the same condition. According to them, the company needs to pay more attention to the declining position of the brand in the market. Due to their lethargy, the company has now declined this position. There has also been a 30% decline in the company’s share.
The brand needs to perform better in the stock market, and people are unsure about its future. Many experts have predicted that the brand will soon go out of business in the coming years.
What will Bed Bath & Beyond do now?
The brand has decided to restructure its strategy and close around 56 stores. This is done so that they can cut some operational costs and fire 20% of the workforce deployed in the country. All of this is done to save up some amount of money that they can right now. The brand is also considering selling its furniture to other big home furnishing brands. By doing so, they will get rid of the unwanted stock, and at the same time, they will also make some money to help them invest more into business.
Right now, they need a source of capital investment. Investors have lost faith in them. They need massive capital for supply chain management and merchandise distribution. The CEO of the company has asked for some time. According to him, a company as big as BBB requires time to change the organization. Nothing is going to happen overnight, which is why they have to make decisions thoughtfully. Already the company has incurred a lot of losses, and now there is no space for any more such things.
The company has said they have contacted local suppliers, which will help them sell their leftover stocks. They are trying to get rid of all the left-out stock at a lower price so the public can afford to buy it. At the same time, it will benefit the company to get rid of the unwanted stock and make some money. They have also been facing some supply chain disruptions due to the trade restrictions on China due to the pandemic. Most of the raw materials were imported through China. China still needs to open up its borders, and the company still faces problems while conducting business with them.
Will Bed Bath & Beyond be able to come out of this situation?
Currently, it is hard to say whether BBB will be able to come out of the ongoing financial crisis or not. As of now, it is tough for the brand to survive. Although they have decided to change their policies and introduce new strategies into the market, there is still a low chance of anything working out. Currently, the brand is in debt, and they have to repay a lot of money.
At the same time, this is the only investor interested in investing money into the business. This means they need more capital investment to make to introduce new changes into the business. They already have a lot of stock left off that they have been trying to sell. The brand has recently decided to discontinue many hit stores from the market, but it’s still being determined if that will also work out. This new strategy’s likeability for the brand could be much higher.
Chances are high that the brand will have to file for bankruptcy and go for a merger or an acquisition. But the brand is not interested in doing so. The brand is doing the best that it can, but we don’t know if it’s enough or not. Due to the failure, it is getting a lot of attention from the public and media. They are making a big gamble, but we hope it works out for the company. They have been facing losses for the last couple of years.
Conclusion
Bed Bath Beyond is a famous company that sells home-related products. When Vit was introduced in the market, everyone thought it would be a highly successful brand like many other home-related brands. It offers high-quality products at a price that is on the higher end.
But over time, the brand started facing losses, and the condition eventually became so bad that they were almost on the verge of bankruptcy. Currently, they are figuring out what to do and restructuring their brand policies.
