“We’ve definitely curated our assortment and taken a lot of skus out.Australian owned, the Bed Bath N' Table brand reflects our love of the land we call home, celebrating the beauty of the modern Australian lifestyle. “We are really trying to clarify the offer to our customers,” Hartsig said. Hartsig said Bed Bath & Beyond is the type of store where people come in for things they need and leave with things they didn’t know they needed. “The store is organized by rooms,” said Joe Hartsig, Bed Bath & Beyond’s chief merchandising officer, who was one of several senior executives accompanying Tritton on the tour. The flagship has also extended its same-day delivery service to all of Manhattan. Bed Bath & Beyond has discovered that the majority of its shoppers in New York prefer self-checkout. There are also expanded self-checkout and manned checkout areas. The flagship has a dedicated area to pick up online orders, or an associate will meet a customer outside for curbside pickup, all within one hour of placing the order. The QR codes create “endless aisles” to shop for additional colors, sizes and products that might not be displayed on the selling floor. Shoppers show the receipt on their phone to an associate as they exit the store. On the technology/omni front, customers can set the Bed Bath & Beyond app to an in-store shopping mode to scan QR codes on the products, learn all about them and purchase them via their mobile phones as they continue to shop, thereby skipping the checkout line. The seasonal shop for college-bound students. Those 450 stores represent about 65 percent of total revenue. The plan is to modernize about 150 stores annually over a three-year period, at a cost of $250 million. So far, 28 Bed Bath & Beyond stores have been renovated, which Tritton, the former Target chief merchant, characterized as “modified versions” of how the flagship has been upgraded. “The flagship is the penultimate expression.” “A key component of our plan is modernizing our stores,” Tritton said. He also raised the outlook for the year with adjusted operating profits projected at $520 million to $540 million, up from $500 million in an earlier projection. The transformation plan has already been bearing fruit, with improved first-quarter selling trends reported, gross margins on the rise, and Tritton claiming Bed Bath & Beyond making market share gains. The transformation strategy also entails 200 store closings divesting non-core businesses such as Cost Plus World Market, which was sold off last December, and curtailing the omnipresent 20 percent off coupons known as “Big Blue.”īy 2023, Bed Bath & Beyond hopes to attain mid-single-digit comparable store sale gains, and operating profits of $1 billion. But things are changing.Īlong with bolstering owned brands, investments in technology and omni capabilities, the supply chain and the store experience are being made through an investment of $1 billion to $1.5 billion through 2023. Bed Bath & Beyond has struggled with eroding value perceptions, difficult to shop stores cluttered with redundant merchandise and poor signage, and intense competition from Amazon, Target and Walmart. “We’ve set out a bold strategic plan last October to become a digital first, omni-always retailer,” said Tritton, referring to the Bed Bath & Beyond transformation strategy he unveiled back then to turn around the business that generated $11.16 billion in sales in 2019 and $9.23 billion in 2020. How much owned brands comprise of the selling space at the flagship and other Bed Bath & Beyond stores will adjust as customer response is gauged. Tritton wouldn’t specify the space occupied by owned brands in the flagship, though in terms of volume, owned brands represented 10 percent last year, and the goal is for 30 percent penetration within three years. Owned brands (Bed Bath & Beyond officials shun the term “private labels”) cover much more of the selling space now, and they’re prominently positioned, though high-profile market brands with national distribution like Uggs, Frette, Dyson and Keurig maintain a greater percent of the business. This year alone at least ten owned brands are being introduced simultaneously with efforts at eliminating product redundancies and unproductive skus.Īmong the introductions so far: Simple Essential, the most basic owned brand in the portfolio, and Haven, a modern spa-inspired line for towels, bathrobes, bath rugs, shower curtains, bathroom furniture and storage solutions. Quite noticeable is the spread of new Bed Bath & Beyond-owned brands, which the company has been aggressively rolling out.
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