The Bed bath and beyond has decided to spend around 1 billion dollars in the current financial year to upgrade their business. In this money, they have the plan to spend 600 million dollars for repurchasing and reduction of debt. And the rest of 400 million dollars will be spent to remodel their stores and update the supply chain management. The CEO of the bed bath and beyond, Mark Tritton wants to fix the store as the priority. They are trying to open a lot of stores in different locations to draw more and more shoppers towards them. They have a record of spending a lot of money and not have any return. But now they want to change that once and for all.
The CEO of the bed bath and beyond has joined the company in November itself after being a CMO for a long time in Target. He wants to remodel all the stores to change the aura of the brand. Currently, bed bath and beyond is in a testing mode to increase their business by enhancing stores in different locations. They have also / their inventory by 20% to add more signage in the marketing sector. Recently they have decided to remodel 25 locations in the current financial year within 2021 to redesign their business. The CEO is quite confident in this project presently. He said that they are concentrating on the home, beauty and baby products to increase their business and those will be there core business area for the coming years.
They have completed their sale bye bags with the affiliation of oak Street real estate capital where they sold the properties of 2.1 million square feet in the real estate sector. In this property the included their office, stores, and some distribution centers. When they received the cash, they paid the rent oak Street. Bed bath and beyond also decided to close down 40 stores of them which are of no use in the coming financial year. It can be a big turning point for them in their current business scenario.
Bed bath and beyond saw a fall down in their sale in the two months of the fourth quarter because of extreme promotion and inventory management related problems. The sales in the store around 5.4% in December. Currently, the company has a market value of 1.5 billion dollars. They are trying to invest in their stores and supply chain management to improve their marketing. They believe that they will be able to do it but it can take a longer time. According to the CEO, they have to be a bit patient to build a business properly. He thinks that they have to rectify a lot of things to change the scenario for themselves. Now the time will tell whether the decision of bed bath and beyond is effective or not in the world business scenario. For that, they have to wait and work according to their plan strictly.