Bed, Bath & Beyond Closings in 2022

Joel Eisenberg

The company closed dozens of stores in February, and many more are coming.

https://img.particlenews.com/image.php?url=1j1Fes_0gQ0Imki00
Bed, Bath & BeyondBedBathandBeyond.com

Author’s Note

This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: BusinessInsider.com, Wikipedia.org, BedBathandBeyond.com, Motley Fool, CNBC.com, MarketRealist.com, and ScrapeHero.com.

Introduction

Per a January, 2022 article from BusinessInsider.com, titled “Bed Bath & Beyond is Closing 37 Stores and Liquidation Sales Have Already Started. Here's the Full List,” the company‘s long-term survival is questioned: A spokesperson for the retail chain confirmed in an email to Insider that it plans to close 37 stores across 19 states in the US. Liquidation sales have begun at these locations, in preparation for closure at the end of February. The store closings form part of a plan it announced in 2020 to shut 200 "redundant" stores over the following two years as part of its turnaround effort after several years of sliding sales. 

Click on the article link, above, for the specific list of 2022 closings.

2021 third-quarter financials are listed on the company website, BedBathandBeyond.com, which states the following:

  • Company offsets higher freight costs while product replenishment delays pressure sales amidst supply chain constraints.
  • GAAP Gross Margin of 35.6%
  • Adjusted Gross Margin of 35.9%, reflecting significant expansion vs. Q3'20 and Q3'19
  • Further SG&A and Expense Optimization of approx. $100 million annualized

The report in itself does not represent imminent danger of the company, and in fact lists gross and net sales as “strong.”

However, according to an April, 2022 article from Motley Fool, entitled “Bed Bath & Beyond Is in Deep Trouble After Another Awful Earnings Report,” the truth may be more complex than it appears: Fiscal 2021 was a year to forget for Bed Bath & Beyond (BBBY -23.77%). After entering the year with high hopes for a return to sales and earnings growth under new CEO Mark Tritton, the company repeatedly missed its targets. Bed Bath & Beyond ended the year on a particularly sour note, as its recent fourth-quarter earnings report revealed. With business conditions expected to remain challenging, Bed Bath & Beyond's turnaround effort may be dead on arrival.

So whose analysis should be followed?

Let us explore further.

Bed, Bath & Beyond, 2022

Wikipedia.org features a comprehensive overview of the Bed, Bath & Beyond chain, which was founded by Warren Eisenberg (no relation) and Leonard Feinstein: In 1971, they opened a store in Springfield, New Jersey, called Bed 'n Bath. By 1985, Eisenberg and Feinstein were operating 17 stores in the New York metropolitan area and California. Also in 1985, the first superstore was opened, as an attempt to remain competitive with Linens 'n Things, Pacific Linen, and Luxury Linens. In order to properly represent the size increase in its retail stores, the company changed its name to Bed Bath & Beyond in 1987.

In March of 2022, MarketRealist.com published “Bed Bath & Beyond on Track to Finish Closing 200 Stores This Year,” in which we were reminded that the company had planned on closing considerably more locations than the 37 in February: In July 2020, Bed Bath & Beyond announced plans to close 200 locations over the next two years. That May, the company had 1,478 stores—a tally that included 955 Bed Bath & Beyond stores and Buybuy Baby, Christmas Tree Shops, and Harmon Face Values locations—according to CNBC.

Today, according to ScrapeHero.com: There are 718 Bed Bath And Beyond locations in the United States as of June 23, 2022. The state with the most number of Bed Bath And Beyond locations in the US is California, with 69 locations, which is 9% of all Bed Bath And Beyond locations in America.

The numbers, it appears, have continued to dwindle.

Conclusion

Bed, Bath & Beyond is not throwing in the towel, and has announced strategic plans moving forward, including the possible opening of larger stores.

Time will tell, and though for now this company certainly has a hill to climb to ensure its survival, there has been no announcement of the company going out of business.

Thank you for reading.

Comments / 62

Published by

I am an award-winning author, screenwriter for film and television, and producer. My mission on News Break is to share socially important perspectives on both culture and pop-culture. Member of PEN America, and the WGA.

Northridge, CA
72758 followers

More from Joel Eisenberg

Comments / 0