Date: 4th August 2019
Bed Bath and Beyond has been having a rough time in the last few years as investors ponder upon whether the retailer has decent future prospects or not. It used to be one of the widely known store for home goods not so long ago.
The company has restructured its board and is also looking for a CEO. It has a lot to accomplish to prevent going out of business. The retailer is focusing on cutting down on costs, streamlining workforce and recover sales.
The company’s investor group, which includes Macellum Capital Management, Legion Partners and Ancora Advisors, said in a statement that Bed Bath and Beyond has chances of reviving its business. It can do so by changing its leadership and following the best practices of retailers in the market that are successful, the investor group said.
There are many changes that the company has planned to make. These include revamping their stores which the customers have remarked as baffling as they are often messy and cluttered. It makes shopping a difficult task, the customers have claimed. Besides that, the retailer is also planning to cut out the middlemen in the United States through which the stores get their supplies. Instead, it plans to restructure its supply chain so as to purchase goods directly from the producers that are based abroad.
Analysts claim that Bed Bath and Beyond still has life and can continue to exist in the market with a purpose. However, they added that it has a lot of heavy work to do for the same.
Shares have fallen from $16.92 to $9 from March 26 to August 1. They have dropped by over half their value in the last year. The market capitalisation of the company currently stands at $1.1 billion.