The troubled retailer has taken another major step to try to stave off closure.
This year has already been difficult for retailers.
We’re only one month into the new year and the likes of Party City (PRTY) – Get Free Report, Joann (JOAN) – Get Free Report, and Bed Bath & Beyond (BBBY) – Get Free Report are plagued with grim balance sheets. Party City filed under Chapter 11 of federal bankruptcy law.
It’s safe to say that brick-and-mortar retailers with little to no competitive moat may be in for a rocky year.
That’s been the case especially for Bed Bath & Beyond, which some analysts look to as a bellwether for other poorly performing retailers in similar spaces. In a troubling sign of things to come, the household-goods and personal-care retailer said it would be shuttering more stores to reduce its costs.
Bed Bath and Beyond Closes a Major Chain
Bed Bath and Beyond will begin closing Harmon, its discount beauty and personal care chain, effective immediately.
“Store closing sales will commence and continue over the next few weeks and months,” Bed Bath & Beyond said.
“While this decision is difficult, local customers can still find their favorite health, beauty and wellness products at nearby Bed Bath & Beyond stores.”
As of November 2022, Bed Bath & Beyond was operating 50 Harmon, Harmon Face Value, and Face Value stores. Many of those stores were concentrated in the tristate area (New York, New Jersey, and Connecticut). All stores will be shuttered.
Its Troubles Don’t End Here
Bed Bath & Beyond will close an additional 87 of its namesake stores, edging toward the 150 stores it said it would aim to shutter in 2022.
“As we continue to work with our advisors to consider multiple paths, we are implementing actions to manage our business as efficiently as possible. The Company has initiated the closure of an additional 87 Bed Bath & Beyond and five BuyBuy Baby stores,” the company said.
“This store fleet reduction expands the company’s ongoing closure program of approximately 150 lower-producing Bed Bath & Beyond banner stores. Additionally, the Company announced the closure of all Harmon locations. We will update all stakeholders on our plans as they develop and finalize.”
Net sales for Bed Bath and Beyond declined 33% in Q3 2023 from the year-earlier period. Comparable-store sales fell 34%.
Early this month Bed Bath & Beyond issued a warning that “there is substantial doubt about the company’s ability to continue as a going concern.”
Chief Executive Sue Gove said the chain would be taking aggressive measures toward reducing the number of its unprofitable stores.
Analysts responded poorly to the earnings; Telsey analysts told Retail Dive that “the store’s unimpressive foot traffic, inconsistent product stock, languished overall appearance, and heavy clearance activity, precisely [depict] the troubling state of affairs faced by the company currently.”