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| PHOTO: MARK KAUZLARICH/BLOOMBERG NEWS |
Due to Bed Bath & Beyond struggling and its shares
falling, the CEO of BB&B, "Bed Bath & Beyond Inc.’s BBBY -1.74%
new chief executive, Mark Tritton, laid out his vision for remaking the
troubled retailer. Decluttering stores is high on his list." has decided
to to change things up a bit. The previous target executive has decided to
reduce inventory by 10% this year and calls to invest $400 million on store
remodeling and upgrades, even supply-chain improvements. Mr. Tritton even
claims that price clarity is a huge issue in the stores and a reason many
customers do not want to shop their as much, “Customers don’t want to do the
math,” Mr. Tritton said, adding that a lack of price clarity was a big reason
shoppers left Bed Bath & Beyond stores empty-handed.
I think this is a good step for BB&B because times in
the retail market are changing and it is good that the CEO is aware about what
is happening. Unlike ToysRus and other companies that filed for bankruptcy,
BB&B is trying to do something about it. "Unlike other troubled
retailers, Bed Bath & Beyond has money, including about $900 million in
cash and cash equivalents as of Nov. 30. In January it reached a deal to sell
and lease-back some of its real estate for $250 million in proceeds."
https://www.wsj.com/articles/bed-bath-beyond-boss-tries-to-declutter-its-stores-11582059600
Would a face lift work for a failing company? Does BB&B have a large enough loyal customer base to keep afloat? I think it would and does. BB&B is not on a downward spiral like Blockbuster, ToysRus, Borders or even Sears. BB&B has a good customer base. They would need to clarify their prices and a new face lift of stores would make it more appealing. Their company is unlike others that directly targets customers for a specific market.
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