Bed Bath & Beyond has released a list of 37 stores slated for closure in 2022 as it approaches completion of its 2020 plan to shutter 200 underperforming locations. The affected shops are located across 19 states, including seven in New York, five in California and four in Washington.
The retailer reported a loss of $276.4 million in Q3 2021, with year-over-year comparable sales down 7% to $1.9 billion. The decline was attributed to a “lack of availability with replenishment inventory and supply chain stresses that had an estimated $100 million, or mid-single digit, impact on the quarter and an even higher impact in December,” said CEO Mark Tritton on a call with investors.
Supply chain challenges also hit Bed Bath & Beyond in another area: paper. The retailer partially attributed low traffic levels to reduced circulation of its circular. “A disproportionate amount of our sales are generated from our circular at stores and are a key trip driver,” said Tritton. “While we were able to activate additional plans for distribution in October, paper supply and labor issues with print vendors impeded our ability to reach full scale circulation.”
Despite the challenges of the quarter, Bed Bath & Beyond reported success with its private label strategy and plans to expand its efforts into creating owned brands for buybuy BABY.
“The penetration is very low in buybuy BABY,” said Tritton. “And it has a predominantly national brand and good national brand business, as well as discretionary label business. There is an opportunity there in key areas like apparel, nursery furniture and across the board in the business to create a multifaceted owned brand program.”
Q3 2021 was positive for buybuy Baby in general, with sales growth in the mid-teens — the banner’s fourth straight quarterly increase — even as its parent company struggled. The new private label items are expected to launch in the second half of 2022.