As Bed Bath & Beyond shuts down operations in Canada, it has itself to blame: report
Bed Bath & Beyond is in crisis. As the company is set to close all its Canadian stores, reports indicate that its downfall is mostly on the company itself.
Here in Canada, all 54 stores are set to close, according to court filings. In the United States, according to a report by Bloomberg, Bed Bath & Beyond “has indicated it is preparing for a potential bankruptcy filing.”
Here’s what the report says, in part, has led to Bed Bath & Beyond’s downfall.
Weak online shopping offerings
According to Bloomberg, “Bed Bath & Beyond’s executives prioritized their brick-and-mortar business” and were blind to adapting to online shopping.
According to a former exec, Bloomberg reported that the “company’s success made it reluctant to change.”
20%-off coupons
Customers love Bed Bath & Beyond’s iconic 20% off coupons, which boosted sales, but they ultimately eroded profits, too.
“Like any form of promotion, it becomes a drug,” a former exec told Bloomberg.
“Once you’re addicted to it and your customer is addicted to it, it’s a very difficult thing to wean them off of.”
COVID-19 and supply-chain issues
According to court filings, despite efforts for “long-term success,” operations were impacted by the pandemic. The company suffered from supply chain disruptions and inflation, resulting in inventory levels “at historic lows.”
Daily Hive has reached out to Bed Bath & Beyond and has not heard back.
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With files from Daily Hive Staff
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