It’s not looking too great for the go-to home retailer. Bed Bath & Beyond has apparently lost $175 million in sales due to out-of-stock items.
According to Retail Dive, executives have blamed the supply chain issues and inventory constraints that the company—as well as many others—have been enduring.
In order to try and dodge these challenges, over the last year Bed Bath & Beyond has attempted to undergo a transformation and introduce some new initiatives.
This included offering a handful of private labels as a way to create a larger assortment. Although, analysts have thought that these new brands weren’t different enough for consumers to actually reach for them over others. In turn, it didn’t make much of a difference in profit.
Bed Bath & Beyond also closed stores that weren’t meeting revenue goals as well as renovated others, but unfortunately, the lack of inventory was still a major problem.
Interestingly enough, GlobalData Managing Director Neil Saunders said in emailed comments to Retail Dive that “We do not accept the excuse that this is supply chain induced. While global supply chain issues have been unhelpful, these issues have been occurring for a long time and are deep-seated.”
An initiative that looks promising for the company is the newly implemented online marketplace in which Kroger will sell Bed Bath & Beyond products and BuyBuy Baby banners on the website, as well as in certain stores.
Saunders believes this will help with short-term challenges and introduce the company to a wider range of customers.
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