Bed Bath & Beyond has announced they will layoff 20% of their workforce and close over 100 stores in order to focus on growth, customer demands and improving its balance sheet, according to their website.
The decision came after the company received more than $500 million in new financing. Although necessary, the funding didn’t wipe out their financial woes, leading to the decision to close “lower producing” stores. According to the press release, sales are down by 26%.
“In a short period of time, we have made significant changes and instituted enablers across our entire enterprise to regain our dominance as a preferred shopping destination for our customers’ favorite brands and exciting products,” said Sue Gove, Bed Bath & Beyond’s director & interim chief executive officer.
Along with closing stores and employee layoffs, the retailer has a strategic plan to bring numbers up and gain more customers. By adjusting the merchandising plan, and bringing back what worked in the past, i.e., more giveaways and popular national brands.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” Gove said.
This wouldn’t be the first time the popular chain closed down stores. As the brand saw an uptick in online sales in 2020, Bed Bath & Beyond closed 40 locations nationwide. In the fall of 2020 the store eased up on its popular coupons.
As far as this new effort to save the well known chain, Gove is sure this is the best decision not only for the bran but also the consumer.
“We command a special presence in the Home and Baby markets, and we intend to fulfill our opportunity to be the category retailer of choice,” she added.
