Bed Bath & Beyond plans to shutter dozens of more stores.
The latest round of 62 expected closures – which includes two Harmon stores and two buybuy Baby stores in New Jersey – is part of the struggling Union-based home goods retailer’s previously announced plan to shut 150 locations.
Within New Jersey, Bed Bath & Beyond expects to close Harmon stores in Parsippany and Rockaway, as well as buybuy Baby locations in Princeton and Rockaway.
As part of a strategic plan unveiled in August 2022, Bed Bath & Beyond said it will shut banner stores and let go of about 20% of its Bed Bath & Beyond workforce. The initial round included 56 stores, with three in New Jersey: in Flanders, Paramus and Manalapan.
As of late November, the company had 949 stores, including 762 Bed Bath & Beyond stores, 137 buybuy Baby stores, and 50 stores under the names Harmon, Harmon Face Values or Face Values.
During a Jan. 10 earnings call, Bed Bath & Beyond Chief Executive Officer Sue Gove said the company is “on track to achieve the 150 store closures,” as previously outlined, which “will further enable us to allocate resources according to customer demand.”
She added, “Our organization is more streamlined and we have adopted a more focused infrastructure that reflects our current business.”
However, Gove acknowledged the company failed to meet its goals for the turnaround plan introduced last summer despite “moving quickly and effectively to change the assortment and other merchandising and marketing strategies.”
As a result, Bed Bath & Beyond reported wider quarterly losses than expected.
A combination of reduced levels of availability inventory and lower customer traffic drove net sales down to $1.26 billion for the three-month period ending Nov. 26 — a 33% decrease from the same quarter last year.
Bed Bath & Beyond reported a net loss of $393 million during the quarter, including impairment charges of $100 million, compared with a net loss of $276.4 million for the same timeframe a year ago.
During the 10-minute earnings call, Gove reiterated the company’s press release and declined to take questions from analysts.
The third quarter results came a few days after the retailer warned it has doubts about its ability to stay afloat and was exploring several options, including bankruptcy.
“As we shared last week, we continue to work with advisors as we consider all strategic alternatives to accomplish our near- and long-term goals,” Gove said. “ We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger. Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner. We are committed to updating all stakeholders on our plans as they develop and finalize — particularly our employees and partners, who are the essential catalysts of our business and the cornerstones of our future.”
She went on, “We want our customers to know that we hear them and are charging ahead every day to meet their needs. Our entire organization is laser-focused on maximizing the value of our company by reconnecting with our customers and positioning Bed Bath & Beyond, buybuy Baby, and Harmon for long-term success.”