Is Bed Bath & Beyond is running out of time?
By Nathaniel Meyersohn| CNN Business
Bed Bath & Beyond, once a leader in kitchenware and bedding, is in free fall. It is racing to win back customers and salvage its brand before the pressures of modern retailing cave in.
“The company has not kept pace with how the customer has evolved and how consumers shop today,” interim CEO Mary Winston told analysts on a conference call Wednesday.
Bed Bath & Beyond reported sales at stores open at least a year sank 6.6% during its most recent quarter. Bed Bath & Beyond lost money last quarter, too.
“There needs to be a fundamental change in our approach,” she said. Bed Bath & Beyond’s stock has lost around 90% of its value over the past five years and is on the verge of slipping below $10 a share. On Thursday, shares fell to a 20-year low.
Winston, a former Family Dollar executive, is trying to stabilize Bed Bath & Beyond after years of struggling sales and a messy activist battle that led to the ouster of the retailer’s veteran CEO in May. Bed Bath & Beyond has since settled with activist groups by overhauling its board of directors and agreeing to make changes to the company.
With the proxy fight behind it, Bed Bath & Beyond is focusing on finding a new CEO that can transform the retailer as competition grows.
The chain has fallen behind traditional retailers who have expanded their home goods presence and a new crop of direct-to-consumer online brands. Walmart, Target and Amazon have launched cheaper private label home brands, while Wayfair has invested heavily on advertisements to get customers familiar with its brand.
Despite efforts to lower prices, Bed Bath & Beyond is still around 10% more expensive than Amazon on similar …read more
Source:: The Mercury News – Business