Bed Bath & Beyond will engage in an “aggressive reduction” of up to $1 billion in inventory over the next 18 months, including the removal of excess old inventory.
This should allow the Union business to reset inventory levels in stores and distribution centers and refresh the assortment of products to drive customer traffic, Chairman Patrick Gaston and Interim Chief Executive Officer Mary Winston said in a letter to shareholders Wednesday.
Additionally, Bed Bath will conduct a “rapid refresh” of 160 of the brand’s 1,024 stores ahead of the holiday season.
“We expect this multi-million-dollar investment in physical improvements to be clearly visible to the customer and favorably impact the in-store shopping experience over the short term,” Gaston and Winston wrote. “A longer-term comprehensive store renovation program, in conjunction with further investments in our customer-facing digital channels as well as marketing and loyalty initiatives, will further the goal to delight our customers whenever and wherever they experience our brand.”
The company also announced that it plans to take advantage of lease expirations over the next few years, closing underperforming stores and relocating others to improve sales and profitability.