When The End Is Near
I had already planned on addressing what seems the imminent demise of a once-prominent retail chain. Bed Bath and Beyond announced last week 150 store closings and layoffs of 20% of its corporate staff, yet another sign in the ongoing saga of a company that has been stuck in the swirling waters of retail irrelevance.
But then Gustavo Arnal, the CFO of the company, jumped to his death yesterday in New York City, telling the whole world that things are probably a lot worse at BB&B than even the news has let on. It’s a horrible tragedy at the personal level, and signifies that days may very well be numbered for the beleaguered chain.
So...what exactly has been going wrong that has caused such drastic measures?
In a word (or perhaps several), they simply lost their place in the market. While they have long prided themselves on being the category killer in household items, Target and Walmart have slowly eroded their sales. And then when you consider Amazon, whose inventory puts BB&B’s to shame, you have all the reasons you need never to shop there.
Heck, I recently asked Amazon to wow me by just searching “kitchen gadgets,” and it did not disappoint.
Never mind also that BB&B relied on a pricing strategy that was typically full suggested retail, complemented by a regular barrage of emailed and printed coupons that routinely slashed 20% off the price. But you had to sign up for those coupons, and then remember to keep them handy and bring them to the store. That’s asking a lot these days.
The company also had to secure an extra $500 million in financing to keep going into the near term. That’s code for “we can’t even afford to keep the lights on until Christmas.” With all the inventory problems retailers in general have been having lately, plus the need to stock up for the holidays, last week’s announcements spoke to dire times ahead.
No wonder Mr. Arnal decided to check out. I am not making light, though. His was an extreme move, one that presented itself as a better option than facing the grim reality of his company going down the drain. Or--who knows?--maybe something worse.
If you have any unused gift cards from BB&B, I suggest you start using them soon. There may not be too many more tomorrows.
As for slow death of a category killer, this demonstrates that no one is immune, and that the format, which took off in the 80s and 90s, may have started running its course. Whereas we once had many big box retailers that went deep into somewhat narrow categories, we have already witnessed the end of quite a few, including Fry’s, Circuit City, Borders Books, Media Play, Linens-N-Things, Comp USA, and others.
Competition, like everything else, evolves. None of the big box chains alive in the 90s ever gave Amazon a second glance, and few thought that Walmart or Target could ever be more than just optimistic wannabes. That, of course, has all changed. Stir in COVID and how it changed everything, and you have BAM stores of all stripes struggling.
To be fair, BB&B is not dead yet, but they’re beginning to look a lot like a fellow I have used as example before: the Black Knight in Monty Python and the Holy Grail. There’s no denying that BB&B has much more than a flesh wound or scratch.
I just wish things weren’t so bad as to cause people to start jumping.
Dr “RIP“ Gerlich
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Jonny Sims had designed the new Bed Bath & Beyond logo. it was a low quality png of a worm on a light pink background. Everyone was going crazy over it. I emailed him and asked how he came up with the design, and he sent me a png of a cinnamon stick and blocked me.
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Bed Bath & Beyond is closing all stores in Canada according to a court filing on Friday.
This comes only two days after the U.S. division announced that they'd raised enough money to avert bankruptcy.
According to the court filing posted on the website of consultancy firm Alvarez & Marsal, it states that "The Bed Bath & Beyond Group has been in financial difficulty for the past several years, suffering significant net losses since 2018."
The filing goes on to note that despite efforts to improve financial performance, the pandemic and the current economic downturn disrupted operations and put them in a financial strain.
Bed Bath & Beyond Canada is apparently not profitable on a standalone basis, and is not able to pay off their debts.
The company will be liquidating all 54 Bed Bath & Beyond stores in Canada and terminating its 387 full-time and 1,038 part-time employees.
Its sister store buybuy BABY Canada will also be ceasing operations.
Continue Reading.
Tagging: @politicsofcanada
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So Mrs Barber had said that she loves Bed Bath and Beyond. How is she doing with the company going bankrupt and the stores doing their closeout sales?
She was very upset at first because she couldn't fathom the possibility of being forced to live without one of her premier happy places.
And then came the sales.
Just like that our Reader went into boss mode. After a brief conversation with her Mr. Andrew Barber, who also doubles as her Life Partner as well as her Partner in Crime, she marched on BB&B armed with a generous budget and a credit card before laying siege to their domestic offerings.
When she was finished, every member of the family had new bedding. She had a shiny new cookware set, coupled with a stand mixer and food processor.
Baby Girl also upgraded their selection of towels. Which is something Andy didn't quite understand. Especially their current towels had suddenly gone from being just fine to scratchy, threadbare rags in the span of her hours-long shopping trip.
But Andy didn't complain. Because when his Baby Girl is happy, the entire house is happy. Which is really all that matters to him. Besides, she was more than willing to show her appreciation the best way she knew how once they shipped the kids off to grandma's later on that same week...
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