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About Bed Bath & Beyond Inc.

Bed Bath & Beyond (BBB) is the nation's #1 superstore domestics retailer with about 1,000 BBB stores throughout the US, Puerto Rico, and Canada. The stores' floor-to-ceiling shelves stock better-quality (brand-name and private-label) goods in two main categories: domestics (bed linens, bathroom and kitchen items) and home furnishings (cookware and cutlery, small household appliances, picture frames, and more). BBB also operates more than 275 Cost Plus and World Market stores, and four smaller specialty chains: about 125 buybuy Baby stores, about 80 Christmas Tree Shops, some 55 Harmon discount health and beauty shops, and two One Kings Lane stores. California and Texas are its largest markets, accounting for about 20% of its total stores.

Operations

BBB sells a wide assortment of domestics merchandise and home furnishings. Sales of home furnishings generate about 65% of the retailer's total revenue, while domestic merchandise makes up about 35% of total revenue each year. 

Domestics merchandise includes categories such as bed linens and related items, bath items and kitchen textiles, while home furnishings include categories such as kitchen and tabletop items, fine tabletop, basic housewares, general home furnishings (including furniture and wall décor), consumables and certain juvenile products.

Some of the company’s proprietary brands include Bee & Willow Home, Wamsutta, Olivia & Oliver, SALT and Artisanal Kitchen Supply.

BBB purchases substantially all of its merchandise in the US, while the rest are purchased from importers. It also purchases a small amount of its merchandise directly from overseas sources. It has around 11,200 suppliers, with the ten largest accounting for approximately 15% of total purchases

Geographic Reach

Nearly all of the New Jersey-based BBB's more than 1,530 stores are in the US, though around 60 of its stores are located across 10 Canadian provinces while three are in Puerto Rico. About 40% of the company's stores are in five US states: California, Texas, Florida, New York, and New Jersey.

In Mexico, BBB also has a joint venture with Mexican retailer Home & More, where it currently operates some ten stores under the BBB banner.

Sales and Marketing

BBB prefers to locate its stores in strip malls and power strip shopping centers in suburban areas of medium and large-sized cities. It also places its stores near major off-price and conventional malls.

The company’s marketing efforts include email, mobile SMS, social, search, digital display, content and influencer marketing, online affiliate programs, and public relations efforts, as well as traditional print media such as postcards, newspaper inserts, circulars, and catalogs, all of which sometimes include coupon offers.

Financial Performance

BBB has struggled to grow in recent years amid a fiercely competitive retail market. Its annual revenues have risen just 1% since 2014.

Revenue decreased to $12 billion in 2018, an approximately 2% drop from the year prior. The decrease was driven in part by one week less in sales in 2018 compared to 2017, and a 1% decrease in comparable sales in 2018. 

Net loss was $137.2 million in 2018, a drop from net income of $424.9 million in 2017. Selling, general and administrative expenses remained the same in fiscal 2018 at $3.6 billion.

Cash on hand at the end of fiscal 2018 was $509 million. Cash provided by operating activities was $918.3 million in 2018, while investing activities used $509.7 million. Financing activities used another $238.6 million.

Strategy

Amid a competitive retail environment, BBB is accelerating changes at the company designed to improve financial performance, enhance its competitive position, and improve its governance structure. 

As part of a fleet optimization, BBB announced in 2019 that it expected to close 60 stores in fiscal year 2020 to create a better balance between its physical and digital presence in the market. The company also announced a 7% reduction in corporate staff and a simplification of corporate structure in 2019, which included the elimination of the position of President and COO. 

Private label brands is a growth opportunity for the company. BBB plans to launch six in-house brands by 2020. In 2019, the company launched a second private-label home furnishings brand called One Kings Lane Open House, which is expected to have affordable pricing.  

Seeking to improve the customer experience, BBB is renovating stores to give them a more modern, less cluttered feel with a better inventory assortment.  The company is also enhancing its omnichannel capabilities through such initiatives as reserving online and picking up in-store, purchasing online and returning in-store, and online appointment scheduling for registry services. 

Bed Bath & Beyond Inc.

650 LIBERTY AVE
Union, NJ 07083-8107
Phone: 1 (908) 688-0888

Stats

Employer Type: Publicly Owned
Stock Symbol: BBBY
Stock Exchange: , NASDAQ
Co-Chairman: Warren Eisenberg
Co-Chairman: Leonard Feinstein
CEO: Steven H. Temares
Employees (This Location): 100
Employees (All Locations): 62,000

Major Office Locations

Union, NJ

Other Locations

Anchorage, AK
Alabaster, AL
Birmingham, AL
Dothan, AL
Florence, AL
Gulf Shores, AL
Hoover, AL
Huntsville, AL
Mobile, AL
Montgomery, AL
Opelika, AL
Oxford, AL
Spanish Fort, AL
Tuscaloosa, AL
Vestavia, AL
Fayetteville, AR
Fort Smith, AR
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Jonesboro, AR
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Carlstadt, NJ
Cherry Hill, NJ
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Dayton, NJ
Decatur, NJ
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Elizabeth, NJ
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Fort Collins, NJ
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Iselin, NJ
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Mays Landing, NJ
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Middletown, NJ
Millville, NJ
Morris Plains, NJ
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New York, NJ
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Omaha, NJ
Orlando, NJ
Paramus, NJ
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Peoria, NJ
Port Reading, NJ
Princeton, NJ
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