Bed Bath & Beyond

Bed Bath & Beyond Inc. is an American chain of domestic merchandise retail stores. Bed Bath & Beyond operates many stores in the United States, Canada, and Mexico.[3]

Bed Bath & Beyond Inc.
FormerlyBed 'n Bath (1971–1987)
TypePublic
IndustryRetail
Founded1971 (1971)
Springfield, New Jersey, U.S.
FoundersWarren Eisenberg
Leonard Feinstein
Headquarters
Union, New Jersey
,
U.S.
Number of locations
1,460 (all divisions) (by 2020)
Areas served
United States
Mexico
Canada
Key people
Warren Eisenberg (Co-Chairman)
Leonard Feinstein (Co-Chairman)
Mark Tritton (CEO)
Arthur Stark (President)
ProductsHome furnishings, domestics merchandise
Revenue US$12.0 billion (FY 2018)
US$761.3 million (FY 2017)
US$424.9 million (FY 2017)
Total assets US$7.041 billion (FY 2017)
Total equity US$2.889 billion (FY 2017)
Number of employees
55,000 (2020)
SubsidiariesSee below
Websitebedbathandbeyond.com
Footnotes / references
[1][2]
Bed Bath & Beyond in Saugus, Massachusetts in October 2011. This location will be closing in February 2021 as part of a plan to close 43 stores.
Bed Bath & Beyond in Markham, Ontario in August 2018.

Bed Bath & Beyond was founded in 1971. It is counted among the Fortune 500 and the Forbes Global 2000.[4][5]

History

Warren Eisenberg and Leonard Feinstein worked in management positions at discount store chain Arlan's. As the company suffered financial difficulties, and the two believed that the market would shift toward specialty stores, they decided to leave and form their own company.[6] 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. The company adopted integrated computer-based inventory management systems in 1993 to better compete with Linens ‘n Things, which had utilized computer inventory management since the late 1980s.[7]

The company went public in June 1992, making its IPO on the NASDAQ stock exchange, where its stock continues to trade under ticker symbol BBBY.[8] Bed Bath & Beyond first reached $1 billion in annual sales in 1999.[7]

In March 2019, three activist investment firms—Legion Partners, Marcellum Advisors, and Ancora Advisors—announced their intent to remove current CEO Steven Temares and restructure Bed Bath & Beyond’s current board of directors.[9] The activist investors highlighted several instances of perceived nepotism, including the acquisition of Buybuy Baby, which was founded by two of Bed Bath & Beyond co-founder Leonard Feinstein’s children, and the acquisition of Chef Central, which was created by co-founder Warren Eisenberg’s son, as examples of poor business practices at Bed Bath & Beyond.[10] This pressure led five independent directors to step down on April 22, 2019, and also resulted in the company restructuring its board to include only 10 directors instead of the previous 12 members.[11]

On April 13, 2019 there was a report that the chain will close 40 stores but open 15 new locations.[3]

On May 13, 2019, Bed Bath & Beyond announced that CEO Steven Temares would step down “effectively immediately” and would resign his seat on the board of directors. Mary Winston, who had been appointed to the company's board as a result of the activist investment firms’ efforts, replaced Temares as interim CEO.[12][13] On November 4, 2019, Mark Tritton, who was previously Target's chief merchandising officer, started as Bed Bath & Beyond's CEO.[14]

The company, which has for decades used coupon mailers and other promotional discounting tactics to attract consumers, also announced in April that it would reduce its use of promotional coupons and tighten restrictions on their use. To combat declining profitability, Bed Bath & Beyond is also creating private-label brands and opening “lab stores” that focus on home decor, food and drink, and health and beauty products.[15]

Bed Bath & Beyond currently operates approximately 1,530 stores in all 50 U.S. states, as well as in the District of Columbia, Puerto Rico, and Canada. In addition to more than 1,020 Bed Bath & Beyond stores, the company also operates approximately 280 Cost Plus World Markets, 100 Buybuy Baby stores, roughly 80 Christmas Tree Shops (and related brands), and more than 50 Harmon stores.[16]

The company is expected to close up to sixty stores around the United States in early 2020.[17] In addition, due to the COVID-19 pandemic, the company announced it would close more than 200 stores, about 21%, over the next two years. [18]

Competition

Since the liquidation of Linens N Things in 2008, Bed Bath and Beyond has several major retail competitors, including Walmart, Target, and JCPenney, as well as several mid-sized competitors like Pier 1 Imports. Companies such as Crate & Barrel, IKEA, and the numerous Williams Sonoma companies like Pottery Barn and West Elm are competitors as well.

Subsidiaries

Acquisitions

Other subsidiaries
  • Bed Bath & Beyond Canada L.P.[26] - 53 stores across Canada in 9 provinces (none in Quebec, Northwest Territories, Nunavut and Yukon)
  • Bed Bath & Beyond Mexico – a joint venture with Home & More to operate four stores in Mexico under the name "Bed Bath & Beyond"[27]
  • Bed Bath & Beyond Invitations – an online wedding invitation venture

New Zealand chain

There is a New Zealand chain with the name "Bed Bath & Beyond", which has no corporate connection with the American company.[28] This chain was founded in 1995 as Linen for Less and is New Zealand's largest Manchester specialist.

References
  1. Bed Bath & Beyond Inc. Reports Results for Fiscal 2017 Second Quarter
  2. Bed Bath & Beyond Inc. 2017 Annual Report (PDF) (Report). Union Township, New Jersey: Bed Bath & Beyond Inc. May 31, 2018. Archived from the original (PDF) on September 30, 2018. Retrieved September 29, 2018.
  3. Wattles, Jackie (April 13, 2019). "Bed Bath & Beyond to close 40 stores". CNN. Retrieved June 27, 2019.
  4. "Bed Bath & Beyond". Fortune. Retrieved February 28, 2018.
  5. "Bed Bath & Beyond on the Forbes Global 2000 List". Forbes. Retrieved February 28, 2018.
  6. "The rise and fall of Bed Bath & Beyond, one of America's most iconic big box retailers". Business Insider India. Times Internet Limited. Retrieved February 27, 2020.
  7. "History of Bed Bath & Beyond Inc". FundingUniverse. Retrieved October 27, 2013.
  8. History of Bed Bath & Beyond Inc. International Directory of Company Histories. 41. St. James Press. 2001. Retrieved February 25, 2019 – via Funding Universe.
  9. Gomez, Amanda (March 26, 2019). "New brooms". Reuters BreakingViews. Retrieved May 1, 2019.
  10. Verdon, Joan. "Bed Bath & Beyond's Family Ties Under Attack: Nepotism Or Good Deals?". Forbes. Retrieved May 1, 2019.
  11. Chin, Kimberly (April 22, 2019). "Bed Bath & Beyond Overhauls Board Amid Activist Pressure". Wall Street Journal. ISSN 0099-9660. Retrieved May 1, 2019.
  12. Thomas, Lauren (May 13, 2019). "Bed Bath & Beyond CEO Steven Temares steps down 'immediately' and resigns from board". CNBC. Retrieved May 14, 2019.
  13. Maidenberg, Micah (May 13, 2019). "Bed Bath & Beyond Chief Executive Steps Down". Wall Street Journal. ISSN 0099-9660. Retrieved May 14, 2019.
  14. Meyersohn, Nathaniel. "Bed Bath & Beyond's new CEO just laid off nearly his entire C-Suite". cnn.com. CNN. Retrieved December 17, 2019.
  15. Bhattarai, Abha (April 26, 2019). "Your love of Bed Bath & Beyond coupons could be killing the retailer". The Washington Post. Retrieved May 1, 2019.
  16. "Bed Bath & Beyond Inc (BBBY.O)". Reuters. Retrieved May 1, 2019.
  17. Martin, Ken (October 3, 2019). "Bed Bath & Beyond increases projected store closings". FOXBusiness. Retrieved October 3, 2019.
  18. Tyko, Kelly. "Bed Bath & Beyond announces plans to permanently close 200 stores over next two years". USA TODAY. Retrieved July 12, 2020.
  19. Lillo, Andrea (March 11, 2002). "Bed Bath makes first acquisition with Harmon". Home Textiles Today. Retrieved October 27, 2013.
  20. Cianciolo, Mike (March 26, 2007). "buybuy BABY Gets Bought". The Motley Fool. Retrieved October 27, 2013.
  21. Hsu, Tiffany (May 9, 2012). "Bed Bath & Beyond to Buy Cost Plus for $495 Million". Los Angeles Times. Retrieved October 27, 2013.
  22. Dealbook Blog (May 9, 2012). "Bed Bath & Beyond to Buy Cost Plus". The New York Times. Retrieved October 27, 2013.
  23. "Bed Bath buys Linen Holdings for $105 million". Reuters. June 1, 2012. Retrieved October 27, 2013.
  24. Brooke, Aliza (August 10, 2015). "Indie Design Retailer Of a Kind Acquired by Bed Bath & Beyond". Fashionista. Retrieved February 19, 2016.
  25. Kapner, Suzanne (June 14, 2016). "Bed Bath & Beyond Buys One Kings Lane for 'Not Material' Price". The Wall Street Journal. Retrieved July 6, 2016.
  26. Bed Bath & Beyond Canada L.P. corporate profile, Bloomberg, retrieved December 13, 2016
  27. "Bed Bath & Beyond Inc. Announces Joint Venture with Home & More, a Home Products Retailer in Mexico". Bed Bath & Beyond. Archived from the original on October 28, 2013. Retrieved October 27, 2013.
  28. "Bed Bath & Beyond - Frequently asked questions". Archived from the original on December 22, 2017. Retrieved June 6, 2016.

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