Bed Bath & Beyond Is Closing Yet Another 150 Stores
THE RETAILER HAS PLANS TO CUT ITS STORE FOOTPRINT IN HALF.
Bed Bath & Beyond is still afloat—and it's trying to keep business up and running. The retailer has struggled since last summer, when it confirmed the closure of 150 "lower-producing Bed Bath & Beyond banner stores." That list grew in the following months—and according to a Feb. 7 press release, Bed Bath & Beyond now wants to whittle its footprint down to just 480 stores. To get to this number, which is a stark contrast from the Feb. 2022 plans, the company is closing yet another 150 stores nationwide. Read on to find out more about the latest batch of closures.
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Roughly 80 percent of U.S. states will lose a store.
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Bed Bath & Beyond released an updated list of stores slated to close, which are under the Bed Bath & Beyond and buybuy Baby banners. All 150 stores are "lower producing," according to a Feb. 6 regulatory filing with the U.S. Securities and Exchange Commission (SEC).
The closures are widespread, sparing few states. According to the document, nearly 40 states will be affected, with closures in Connecticut, Maryland, California, Michigan, Pennsylvania, Florida, Ohio, Illinois, Virginia, Georgia, Massachusetts, Missouri, Texas, Minnesota, Kansas, Tennessee, Washington, Wisconsin, Oklahoma, Iowa, New York, New Jersey, Louisiana, South Carolina, Colorado, North Carolina, Oregon, Alabama, Arkansas, Utah, New Mexico, Arizona, West Virginia, Indiana, Maine, Montana, Idaho, and New Hampshire.
A spokesperson for Bed Bath & Beyond confirmed that closures have already begun.
Bed Bath & Beyond is cutting its store footprint in half.
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These shuttering stores add to the closures that were already announced over the past several months.
The first round of closures included 120 Bed Bath & Beyond and buybuy Baby stores, according to a list updated on Jan. 30. On top of that, last month the retailer announced plans to shutter another 87 flagship stores and 50 Harmon stores, bringing the grand closure total to just over 250 locations.
With the 150 stores now on the chopping block, the grand store closure total reaches 400, or nearly half of the estimated 955 stores that were open a year ago. According to the SEC filing, this is all part of Bed Bath & Beyond's "current store fleet optimization program."
"We have already initiated store closures in our Bed Bath & Beyond banner that will see us reach approximately 360 stores, in addition to approximately 120 buybuy BABY stores, across the U.S.," the spokesperson told Best Life. "In response to evolving shopping preferences today, this target store base includes the Company's most profitable locations and best geographic presence for customers that can enable an optimal omni-experience.
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The Harmon brand is being wiped out entirely.
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As one component of the optimization program, Bed Bath & Beyond is doing away with Harmon drugstores, which mainly sell health and beauty products. As of Jan. 30, roughly 50 stores remained in six states, operating under the Face Values or Harmon Face Values banners—and once these stores go out, the Harmon brand will be no more.
The Harmon website is no longer active, with a statement on the Bed Bath & Beyond site thanking customers and confirming the closures.
"Unfortunately, we have made the difficult decision to close our Harmon stores," the announcement reads. "You can look for your favorite products in select Bed Bath & Beyond stores or on bedbathandbeyond.com."
The retailer did just secure funding.
On Jan. 5, Bed Bath & Beyond stated that it had "substantial doubt" it could stay in business, warning of a potential Chapter 11 bankruptcy filing. CNN also reported that the company defaulted on a loan—and according to the Feb. 6 SEC filing, things still aren't looking great, as it expects sales to be down by 30 to 40 percent in the first quarter.
However, Bed Bath & Beyond's latest announcement coincided with news that it also secured $1 billion in financing to help keep bankruptcy fears at bay, The Wall Street Journal reported. The retailer hopes that the funding—in addition to $100 million in credit from lenders—will keep business alive for now.
Prior to the funding announcement, experts said they weren't sure about Bed Bath & Beyond's future. On Jan. 30, Yahoo Finance Live anchor Brian Sozzi called Bed Bath & Beyond a "zombie retailer," meaning shoppers can still go to stores, but they don't have much to choose from. This limited inventory damages the company's relationship with customers, which is (obviously) a crucial component of its business model.
"If the consumer doesn't think that there is any value in spending time there, or putting gas in the tank and spending any of that gas on your trip to Bed Bath & Beyond, or even walking into the store, then that just continues on with Bed Bath & Beyond struggling to move the product that they have in store," Yahoo Finance Live anchor Brad Smith added.